This week’s Super Alert includes three consultations which have commenced on reforms to implement various recommendations made as part of the Royal Commission’s Final Report, as well as an ASIC Commissioner speech and an APRA release on climate change risks.
Terms of reference – APRA capability review
On 13 March 2019, Treasury released for public consultation the ‘Terms of Reference’ which will be used by the panel involved in the capability review of APRA. This review was announced by the Treasurer on 11 February 2019 in response to recommendation 6.13 of the Royal Commission’s Final Report. You can read more about this review in our Super Alert – 15 February 2019.
Submissions close on 10 April 2019.
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ASIC – Commissioner speech
On 14 March 2019, the speech made by ASIC Commissioner Sean Hughes at the Law Council of Australia’s annual superannuation law conference on 8 March was released. He spoke about the Royal Commission, the focus for ASIC in 2019 and beyond, and implications for the superannuation industry.
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Enforceability of financial services industry codes – Consultation paper released
On 18 March 2019, Treasury released a consultation paper entitled ‘Enforceability of financial services industry codes’. The paper has been released in relation to the Royal Commission’s recommendation to provide ASIC with additional powers to make certain financial sector codes ‘enforceable code provisions’ for which a contravention will constitute a breach of law. The consultation paper ‘sets out a series of questions which will inform the development of legislation to enact the Government’s commitment to implement recommendation 1.15’.
Submissions close on 12 April 2019.
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AFCA – Consultation paper for expanded remit
On 18 March 2019, AFCA released for public consultation a document entitled ‘AFCA Rules Change Consultation’ in order to implement a new condition which will ‘require AFCA to deal with complaints about conduct by financial firms … dating back to 1 January 2008’. This expanded remit will only operate from 1 July 2019 to 30 June 2020. Further information about the Government’s announcement to expand AFCA’s remit is covered in our Super Alert – 25 February 2019.
Submissions close on 12 April 2019.
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APRA Information Paper – ‘Climate change: awareness to action’
On 20 March 2019, APRA issued an information paper ‘Climate change: Awareness to action’ which includes the results of its first climate risk survey of regulated entities. It announced that it ‘will increase its scrutiny of how banks, insurers and superannuation trustees are managing the financial risks of climate change to their businesses.’ APRA has called on entities ‘to move from gaining awareness of the financial risks to taking action to mitigate against them’. Further, it emphasised its expectation that climate risks be assessed within existing prudential risk management standards, being SPS 220 Risk Management for regulated superannuation funds.
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This article was written by Natalie Cambrell, Partner, Damian Tarulli, Special Counsel and Sanela Osmanovic, Associate.
| Natalie Cambrell
P: +61 3 8644 3754 E: ncambrell@hwle.com.au |
Damian Tarulli
P: +61 7 3169 4832 E: dtarulli@hwle.com.au |