Welcome to our financial lines update, where we bring you recent developments relevant to the financial lines insurance market.
In this update, we discuss significant new legislation for the design and construction industry, ASIC’s enforcement agenda, and the High Court’s interpretation of who is an “officer”:
- the new Design and Building Practitioners Regulation 2021 (NSW) introduces additional insurance requirements that both insurers and the design and construction industry should be aware of;
- ASIC continues its enforcement agenda and flagged its future priorities, including a focus on the financial services industry; and
- the High Court has interpreted the definition of “officer” under the Corporations Act 2001 (Cth) to extend to those that have resigned from official capacities but continue to be involved in management decisions and have a substantial impact on the corporation.
Under Construction: New Design and Building Practitioners Regulation 2021 (NSW): a challenge for underwriters?
Last month, the NSW Government released the much anticipated Design and Building Practitioners Regulation 2021 (NSW). The new Regulation clarifies aspects of the Design and Building Practitioners Act 2020 (NSW) including the insurance provisions. In this article, we discuss briefly some important insurance considerations that arise and how they will affect insurers.
Click here to read the full article.
ASIC continues its enforcement agenda in second half of 2020 according to latest update
The Australian Securities and Investments Commission remains focused in its pursuit of expanding its enforcement footprint despite the disruptions caused by COVID-19 as evidenced by its latest enforcement activity report. The statistics in ASIC’s latest update for the second half of 2020 show the regulator continuing its agenda, along with providing an outline of its future priorities.
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ASIC v King [2020] HCA 4: A definition of “officer” that extends beyond formal titles
In March 2020, the High Court delivered its judgment in ASIC v King [2020] HCA 4, in which it clarified the definition of “officer” under s 9(b)(ii) of the Corporations Act 2001 (Cth). The High Court confirmed it extends beyond formal office holders to persons involved in management decisions that have a substantial impact on the corporation, including after resignation from official capacities.
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To view the financial lines update from April, please click here.
To view the financial lines update from March, please click here.
