News From The Regulator

ASIC Releases Regulatory Guide 259:  Risk Management Systems for Responsible Entities

ASIC Releases Regulatory Guide 259: Risk Management Systems for Responsible Entities

ON 27 March 2017, ASIC issued Regulatory Guide RG259: Risk Management Systems for Responsible Entities.  ASIC states the guidance promotes early identification and management of risks by responsible entities to help avoid the adverse consequences that may affect investors. The guide outlines ASIC expectations for responsible entities to have: overarching risk management systems in place;…

ASIC releases findings on CommInsure Investigation

ASIC releases findings on CommInsure Investigation

On 23 March 2017, ASIC released its public report into the investigation of the life insurance business of CommInsure, part of the wealth management business of the Commonwealth Bank of Australia. CommInsure had used out of date medical definitions when determining claims under its polices.  ASIC found this not to be unlawful providing it is clearly disclosed to…

ASIC imposes licence conditions on NAB’s superannuation trustee

ASIC imposes licence conditions on NAB’s superannuation trustee

ASIC has imposed additional licence conditions on the Australian financial services (AFS) licence of NAB’s superannuation trustee, NULIS Nominees (Australia) Limited (NULIS), following breakdowns in internal procedures. The conditions require NULIS to engage an ASIC-approved independent expert to assess and report on the adequacy of its compliance and risk management practices for its retail and…

APRA releases enhanced governance requirements for Trustees

APRA releases enhanced governance requirements for Trustees

On 3 November 2016, APRA provided correspondence to superannuation trustees outlining updated governance requirements for RSE licensees. Amendments include the requirement for superannuation trustees to put in place a governance framework which sets out policies and procedures for: the nomination, appointment and removal of directors; board renewal; board tenure; and board size. APRA Deputy Chairman…

APRA releases snapshot in Risk Culture

APRA releases snapshot in Risk Culture

On 18 October 2016, APRA released an information paper which provides a snapshot of current practice in risk culture across the financial services industry in Australia. What is Risk Culture? Risk culture is described as the organisational culture on how risks are managed. It is how staff identify, control, mitigate and monitor risks in the…

APRA sets out expectations for life insurers and superannuation trustees when assessing insurance claims

APRA sets out expectations for life insurers and superannuation trustees when assessing insurance claims

APRA has identified a number of areas, where superannuation trustees and life insurers can improve their claim handling processes. APRA has provided a letter to RSE licensees and life insurers which coincides with a report released by ASIC on an investigation into the treatment of insurance claimants. Regulators to focus on claim handling processes during…

APRA Releases Trio Investigation Report

APRA Releases Trio Investigation Report

On 8 April 2016, the Australian Prudential Regulation Authority (APRA) released its report into the investigation of the collapse of Trio Capital Limited, providing an overview of the circumstances which contributed to the failure and the regulatory actions taken. The outcome of the Trio investigation provides important lessons for superannuation trustees, who must act in…

Senate Scrutiny of Financial Advice to Include Life Insurance

Senate Scrutiny of Financial Advice to Include Life Insurance

In March 2016, the Senate referred the following additional matters to the Economics References Committee as part of its inquiry into the implications of financial advice reforms the need for further reform and improved oversight of the life insurance industry whether entities are engaging in unethical practices to avoid meeting claims whether a life insurance…

Discussion Paper on the Objective of Superannuation

Discussion Paper on the Objective of Superannuation

In response to a recommendation from the Financial System Inquiry, The Hon Kelly O’Dwyer MP, released a discussion paper on 9 March 2015, entitled the “Objective of Superannuation” setting out for public consultation the Government intention to enshrine the ‘objective‘ of superannuation in law. Setting out the objective in legislation is intended to guide policy…

Trust and Confidence, Culture and Ethics : Speech by Greg Medcraft, ASIC

Trust and Confidence, Culture and Ethics : Speech by Greg Medcraft, ASIC

Speaking at an Annual dinner of the Paddington Society in Sydney, 6 August 2015, Greg Medcraft spoke of the “right nudge in shaping communities locally and globally“. On Culture Mr Medcraft described, how, since the global financial crisis, we had witnessed example after example of financial institutions behaving in a way which left customers coming off…

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