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. Breach reporting (ASIC): ASIC has issued Consultation Paper 340, seeking stakeholder feedback on proposed updates to its draft guidance on upcoming breach reporting reforms. ASIC seeks public comment on the draft guidance and information sheet by 3 June 2021. The consultation paper follows the Treasury consultation seeking to limit the scope of the legislation — which did not go far enough in my view. In the consultation paper, ASIC set outs that it proposes: 1) to give consistent guidance for AFS licensees and credit licensees on how they can comply with the breach reporting obligation, with examples of how the obligation applies in particular situations; 2) to provide high-level guidance to help AFS licensees and credit licensees identify what they must report to ASIC; 3) to include guidance in draft RG 78 about the obligation for licensees to report to ASIC within 30 days after they first know that, or are reckless with respect to whether, there are reasonable grounds to believe a reportable situation has arisen; 4) to provide high-level guidance on compliance systems for breach reporting to help licensees comply with the breach reporting obligation (which accords my firm’s development of the Gadens breach manager). All of which makes sense, together with an ASIC spreadsheet outlining the “notify, investigate and remediate” for AFSLs and mortgage brokers which set out the obligations for these licensees to investigate certain breaches of the law and notify and remediate clients and consumers in certain circumstances — see here. The new breach reporting regime — stay tuned for a detailed analysis of the regulatory guide soon — will prove to be a large shock to the system in October 2021, as ASIC itself acknowledges stating that it “…expects a significant increase in the volume of reports received as a wider range of entities will be required to report and a wider range of breaches will be subject to reporting.” Together with DDO starting in October 2021, start preparing now is my advice!

Thought for the future: the Treasurer this week announced the “regulator of regulators”, the Financial Regulator Assessment Authority (FRAA), which will be responsible for overseeing the “effectiveness and capability” of ASIC and the prudential regulator, APRA. It makes complete sense. Parliament is, in my view, ill equipped to be the monitoring body given the expertise gap and politicization that can occurs as anyone who spends time reading the Hansards of the FS Committee will likely pick up.

AU financial services lawyer in compliance, regulatory & disputes. Email sign-up: and LinkedIn: