Mackay Chapman June 2023 ASIC Update

In this month’s ASIC update:

• The date for financial adviser registration has been extended;
• The APS Data Analytics and Visualisation Award 2023 was won by ASIC for its development of an insider trading and detection capability; 
• Continued ASIC Greenwashing focus; 
• ASIC conducts cyber resilience survey;
• Relief for insurers for transaction confirmation requirements; and 
• the Moneysmart service has had over 3.2 million visitors this year. 

Adviser Registration Extension

ASIC will extend the registration date to 1 October 2023 for financial advisers who provide personal advice to retail clients on relevant financial products (including timeshare advisers). 

The registration requirement is separate to the pre-existing requirements for an AFS licensee to appoint a relevant provider to the Financial Advisers Register after they have been authorised. 

The requirement for financial advisers to be registered was introduced by the Financial Sector Reform Act 2021, in response to Recommendation 2.10 of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry. 

See the announcement here.

ASIC award for data analytics

The Australian Public Service (APS) Data Analytics and Visualisation Award 2023 was won by ASIC, for its development of a sophisticated insider trading surveillance and detection capability.

The award recognises outstanding and innovative analytics that deliver accessible insights and data visualisations to inform decisions. 

The winning new system automatically hunts for and detects suspected market misconduct, profitable and suspicious trading patterns, and identifies connections between traders and potential sources of inside information.  

The capability was developed by a team of ASIC staff that are specialists in data, analytics, and surveillance. 

See the announcement here.

Green washing remains a clear focus

ASIC’s Deputy Chair Karen Chester, speaking at the RI Australia 2023 annual conference, reiterated ASIC’s focus on Greenwashing: 

“Green washing is for ASIC, and I’m confident for all of us here today, a corrosive agent to market integrity and thus to fair, efficient and informed markets,” she said.

“From our perspective, there are three ‘must haves’ to ensure we maintain fair and efficient sustainable finance markets. All three, working collectively, should prove an effective antidote to greenwashing.”

 Ms Chester went on to describe the need for transparency, and regulators doing their job and working together in doing so.

 See more here.

ASIC-regulated entities have been invited to take part in a survey to measure cyber resilience in Australia’s corporate and financial markets

ASIC-regulated entities, including publicly listed companies and other entities holding licences and authorisations, are invited to take part in a survey to measure cyber resilience in Australia’s corporate and financial markets. 

The ASIC cyber pulse survey will be one of the largest conducted into Australia’s cyber resilience, and will measure entities’ current cyber security and controls, governance arrangements, and incident preparedness. 

ASIC Executive Director, Markets, Greg Yanco said, ‘recent high-profile cyberattacks demonstrate the need for all businesses to have robust cyber capabilities. Cyber attacks are becoming more frequent and complex and are not limited to companies with large retail customer bases.’

Participation in the survey is voluntary, with all responses anonymised. The survey is accessible to ASIC regulated entities by logging into the ASIC Regulatory Portal, and following the link provided.

See more here.

Relief for insurers for transaction confirmation requirements

ASIC grants relief to insurers from certain transaction confirmation requirements.

Life and general insurers have been provided relief by ASIC, to provide modifications and exemptions from the confirmation of transaction requirements contained in section 1017F of the Corporations Act in prescribed circumstances.

The relief is set out in two separate legislative instruments that aim to provide increased legal certainty and reduce regulatory burden in relation to life and general insurance policies.

Both relief instruments form part of ASIC’s commitment to provide administrative relief in circumstances where strict compliance with the primary legislation produces an unintended or unforeseen result.

The relief will expire on 1 July 2028. ASIC will review the operation and appropriateness of the instruments before they expire.

See more here.

Moneysmart indicators of growing financial distress

Finally, ASIC released this piece on Moneysmart in light of growing financial stress caused by inflation and rate rises.  

ASIC’s Moneysmart website has had over 3.2 million visitors so far this year. A record number of users visited the website in February and March, compared to previous years.

Moneysmart users are looking for ways to relieve money pressures, with traffic to content on problems with paying your mortgage increasing 149% since 2022. 

People are also looking to pay off their credit cards (up 34%) and are considering credit card balance transfers (up 55%).

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If any of the above is relevant to you or you want to know more, please feel free to get in touch.

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The contents of this article do not constitute legal advice and it is not intended to be a substitute for legal advice and should not be relied upon as such.  It is designed and intended as general information in summary form, current at the time of publication, for general informational purposes only.  You should seek legal advice or other professional advice in relation to any particular legal matters you or your organisation may have.