Australian regulators weekly wrap — Monday, 14 June 2021

Keeping on top of the latest financial services regulatory & compliance trends?

Investing time in your professional development within a rapidly changing financial services industry is challenging. To meet that challenge, the Australian regulators weekly wrap is designed to keep you at forefront of your practice by quickly setting out the top 5 developments from the past week, analysis and practical considerations for the future.

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  1. LIBOR (APRA, ASIC and RBA): ASIC, APRA and the RBA have followed the Financial Stability Board’s lead, and released statements confirming their requirement that the use of LIBOR in new contracts should cease as soon as practicable, and no later than the end of 2021. The Financial Stability Board’s made an announcement to this effect on 2 June 2021. There is some great resources in the FSB’s webpage, including a useful global transition roadmap, which is my top read for the week. They will be helpful in moving away from the benchmark as, in the words of our Australian regulators, “[c]ontinued reliance on LIBOR poses significant risks and disruptions to the stability and integrity of the financial system. Firms themselves may also face financial, conduct, litigation, and operational risks associated with inadequate preparation”. (Emphasis added)
Royal Commission Reforms — Status as at 2021

Thought for the future: the UK FCA issued warnings on two companies acting as ‘clone firms’ of licensed financial businesses. UBS Capital Wealth and ICO Crypto are on the regulator’s watch, as fraudsters are using UBS AG and Swiss Re Capital Markets Limited details, respectively, to try to convince people that they are a legitimate company. Something to keep an eye out for in Australia, as we battle our own rise in unscrupulous scammers capitalising on the disruption caused by COVID-19…

AU financial services lawyer in compliance, regulatory & disputes. Email sign-up: http://eepurl.com/gG9Kk1 and LinkedIn: https://www.linkedin.com/in/lthennessy/