ASIC

For the 2024 annual general meeting (AGM) season, companies should ensure their constitutions have been amended if they wish to hold virtual-only meetings of members. A recent ASIC review found some companies held virtual-only meetings without having constitutions that expressly required or permitted them - or had not lodged the relevant company resolutions with ASIC. There are specific requirements for how an entity may amend its constitution. Find out more https://lnkd.in/gFWY2HxS #companies #AGM

ASIC Commissioner Alan Kirkland joined ABC News to discuss ASIC’s review which found four Australian banks kept at least two million Australians on low incomes in high-fee accounts. As a result of ASIC’s review, banks will return over $28 million in fees to these customers over the next 12 to 18 months. ‘ASIC is a very active litigator where we see harm. In this case, what we’ve done is release a report and really put pressure on banks to do the right thing by their customers,’ Commissioner Kirkland said. ‘The significant refunds that people are going to receive for fees charged in the past really speak for themselves as results of ASIC’s work.’ Watch the full clip https://lnkd.in/gdGrRjJX

John Bigatton, the Australian promoter of financial services business and #crypto platform BitConnect, has been convicted for providing unlicensed financial advice. Mr Biggaton promoted BitConnect in seminars and on social media, claiming it was ‘better than any term deposit out there’ and telling seminar attendees that BitConnect Coins would increase in value to at least USD$1,000. ASIC Deputy Chair Sarah Court said, ‘This matter sends a clear message to Australians - that ASIC has and will act when unlicensed operators try to take advantage of Australian investors.’ Sydney District Court Judge Newlinds described the offending as a breach of trust, saying that ‘people who get involved in the promotion of financial products as part of a business for profit... need to be scrupulous in finding out for themselves what the law is and then to abide by that law.’ Read more https://lnkd.in/gkeirkDr #crypto #FinancialAdvice

An ASIC report released today shows banks will repay over $28 million to customers on low incomes, including #FirstNations Australians. Our ‘Better banking for #Indigenous consumers’ project found a number of Australia’s big banks were responsible for keeping at least two million customers on low incomes – including those relying on Centrelink payments to make ends meet – in high-fee accounts. ASIC Commissioner Alan Kirkland said the banks had caused financial distress through avoidable fees and complicated processes, often creating barriers for regional and remote consumers. ’Banks knew that many of these customers on low incomes were in inappropriate high-fee accounts, and it has taken ASIC to force them to act,’ he said. Read more https://lnkd.in/gAtxBmmW

We were privileged to be joined by special guest Dion Devow to mark NAIDOC Week on 11 July. ASIC Commissioner Alan Kirkland – sponsor of our #Reconciliation Action Plan Culture Working Group – hosted the event in our Sydney office, with a welcome to Gadigal Country by Uncle Michael West. Dion discussed his work honouring culture through and with #FirstNations businesses, his work in youth mentoring, and his reflections on this year's theme, 'Keep the Fire Burning! Blak, Loud & Proud'. Thank you to all our colleagues who joined us, and to the Culture Working Group for organising the event. As Australia’s corporate, markets, financial services and consumer credit regulator, we strive to create and maintain a fair, strong and efficient financial system for all Australians. This includes ensuring that Aboriginal and Torres Strait Islander peoples can access the financial system and experience positive financial outcomes. Read our Reconciliation Action Plan https://lnkd.in/gFj4p_au #NAIDOC2024

ASIC acknowledges royal assent of the Treasury Laws Amendments (Delivering Better Financial Outcomes and Other Measures) Act 2024 (DBFO Act). Royal assent of the DBFO Act marks an important step in advancing reforms to financial advice regulation. Over the coming months, ASIC will update regulatory guidance impacted by the DBFO Act. Find out more: https://lnkd.in/ggcrn_SF

ASIC and the Australian Prudential Regulation Authority (APRA) have published new information to help insurers and #superannuation trustees prepare for the Financial Accountability Regime (FAR). The FAR imposes a strengthened responsibility and accountability framework to improve the risk governance cultures of APRA-regulated entities, their directors and most senior executives. It already applies to the #banking industry, and takes effect for super and #insurance from 15 March 2025. This release follows joint public consultation and contains information to assist entities and their accountable persons in complying with their obligations under the FAR. Read more https://lnkd.in/gFzna2YX

The Federal Court has found Firstmac breached the new design and distribution obligations (#DDO) when cross selling an investment product to customers who held existing term deposits. Firstmac sent product disclosure statements for its 'High Livez' product to 780 customers with term deposits, without first taking reasonable steps to ensure consistency with its target market determination (#TMD) for the product. The Court found the steps Firstmac took were wholly inadequate to meet the statutory obligation imposed by the DDO legislation. This is the first finding by a court of a contravention of these provisions. A TMD is an important requirement under DDO. It is a mandatory public document that sets out the class of consumers a financial product is likely to be appropriate for (the target market) and how it will be distributed to them. Read more https://lnkd.in/gSrXfTks

Our intelligence shows that reports of money recovery scams are on the rise. We’re urging Australians who have been scammed to be wary of offers to recover their money for an upfront fee. As part of our initial response to these crimes, we’ve referred websites used in recovery scams for takedown action. One has been taken down already. Consumers should call their bank or financial institution immediately if they think a scammer has their money or personal details. They can also contact IDCARE for support. Read more: https://lnkd.in/grSWnbYB

We have issued our 2023-24 estimates of #regulatory costs and levies for each industry subsector to help entities plan and budget. We publish the Cost Recovery Implementation Statement (CRIS) each year to provide information on how we implement the industry funding model, introduced by the Australian Government in 2017. The levies organisations pay reflect ASIC’s costs of regulating the subsectors they operate in. Final levies will be published in December and invoiced between January-March 2025. Read more https://lnkd.in/gKe5AtZ8