Our insights - Henry Davis York

Regulatory Recap - November 2016

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Recent Key Developments

  • House of Representatives Standing Committee on Economics released its first report on its review of the major banks
  • President-elect Donald Trump foreshadowed that he may dismantle the Dodd-Frank Act
  • ASIC is working with other regulators to understand developments in their jurisdictions and help innovative entrepreneurs to expand their target markets into other jurisdictions

Australia

  • House of Representatives Standing Committee on Economics released its first report on its review of the major banks. Its recommendations include public reporting of significant regulatory breaches (including the names of relevant senior executives and the consequences that they faced), continual monitoring of competition in Australia's banking sector and the creation of a data sharing framework for consumers and small business data: > read more
  • ABA released an industry guideline on how banks can support their customers manage financial abuse and family and domestic violence: > read more
  • Federal Government agreed to new federal whistleblower laws, to apply to the public and corporate sectors, making it easier for whistleblowers to expose corporate wrongdoing without fear of ramifications like termination or financial penalties: > read more
  • Minister for Revenue and Financial Services introduced legislation to Parliament mandating professional standards for financial advisers. The new professional standards regime will commence on 1 January 2019 and will increase the training, education and ethical standards of financial advisers, including requiring new advisers entering the industry to hold a relevant degree: > read more
  • ASIC Commissioner John Price spoke about conduct risk, what ASIC is doing about it and what digital disruption means for risk and compliance: > read more
  • ASIC Chairman Greg Medcraft spoke about fintech opportunities and risks in cross-border innovation at two international risk conferences in Singapore: > read more and more
  • ASIC Chairman Greg Medcraft demonstrated ASIC's focus on increasing its data capabilities with a speech about how data and AI can be used to drive better customer outcomes: > read more
  • ASIC took steps to ensure consumers are not charged direct debit fees when taking out a small amount loan: > read more
  • ASIC's investigation led to Cash Converters agreeing to refund $10.8 million to consumers who received small amount loans, pursuant to the terms of an enforceable undertaking. Cash Converters also paid a $1.35 million penalty. ASIC's investigation found that Cash Converters failed to make reasonable inquiries into consumers' income and expenses: > read more
  • ASIC is working with other regulators to understand developments in their jurisdictions and help innovative entrepreneurs to expand their target markets into other jurisdictions. It recently announced agreements with regulatory bodies in Kenya, Ontario, the UK  and Singapore
  • ASIC accepted voluntary undertakings from two registered liquidators, requiring them to engage independent experts to improve their firm's compliance culture and review three of their external administrations to assess compliance with liquidators' duties and obligations: > read more
  • APRA released a guidance paper about risk culture, outlining their approach to risk culture and supervisory priorities. APRA's initiatives include providing more guidance to industry, holding bilateral discussions with institutions' senior executives and directors and conducting on-site reviews at individual institutions focussing on risk culture. It will also review industry remuneration practices: > read more

    International

    United Kingdom

    • FCA released its Mission Paper, vowing to focus on better and clearer regulation and pledging to intervene to protect particularly vulnerable customers, including pensioners: > read more
    • FCA issued a guidance consultation on the fair treatment of mortgage customers in payment shortfall. The guidance covers remediation for mortgage customers who may have been affected by firms including their payment shortfall balance within their contractual monthly instalments, effectively capitalising the shortfall: > read more

      United States

    • President-Elect Donald Trump foreshadowed that he may dismantle the Dodd-Frank Act and replace it with "new policies to encourage economic growth and job creation", as well as weakening the reach of the Consumer Financial Protection Bureau: > read more
    • SEC's charges against JPMorgan Chase & Co led to the firm paying more than US$264 million in sanctions. The charges related to JPMorgan's asian subsidiary's client referral hiring program, which engaged in bribery by hiring children of government officials and clients in return for business rewards, in breach of the Foreign Corrupt Practices Act: > read more
    • SEC announced an award of more than $20 million to a whistleblower who provided information that enabled the SEC to initiate enforcement action against a corporate wrongdoer. It was the third-largest award since the SEC's whistleblower program began issuing awards. Payments are made out of a whistleblower protection fund established by Congress that is financed through monetary sanctions paid to the SEC by securities law violators: > read more

Our Regulatory Risk + Strategy Team​

Anna Simmons

Senior Associate

61 422 184 048

61 2 9947 6552

anna.simmons@hdy.com.au

Scott Atkins

Partner

61 411 441 234

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scott.atkins@hdy.com.au

Nikki Bentley

Partner

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nikki.bentley@hdy.com.au

John Martin

Partner

61 418 229 942

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john.martin@hdy.com.au

Kathy Merrick

Partner

61 407 214 611

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kathy.merrick@hdy.com.au

Claudine Salameh

Partner

61 402 451 770

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claudine.salameh@hdy.com.au

Victoria Taylor

Senior Associate

61 428 391 030

61 2 9947 6306

victoria.taylor@hdy.com.au