Monday, January 10, 2005
ASIC has issued a series of papers on FSR including :
Thursday, October 21, 2004
FSR Breach Reporting Guide
ASIC has issued a breach reporting guide for holders of an Australian financial services (AFS) licence.
The guide gives licensees examples of some breaches which may be significant. It also provides useful guidance on how to report a breach to ASIC, as well as the information that should be included in a breach report.
Under s912D of the Corporations Act, licensees are required to notify ASIC in writing of any significant breaches or likely breaches of their obligations, as soon as practicable and in any event within five business days of becoming aware of the breach or likely breach.
Sunday, October 10, 2004
Time critical FSGs
ASIC has issued a class order [CO 04/1055], Information in a Financial Services Guide given in a time critical situation, to facilitate the provision of a Financial Services Guide (FSG) in a time critical situation under the Corporations Act 2001 (the Act).
Thursday, October 07, 2004
The Australian Securities and Investments Commission (ASIC) has announced that it has granted relief to extend the date for compliance with the dollar disclosure regime from 1 January 2005 to 1 March 2005.
ASIC expects to publish a final policy statement on dollar disclosure in November 2004. This policy statement will specify in what circumstances, if any, ASIC might determine that dollar disclosure is not possible, unreasonably burdensome or contrary to clients' interests.
Under the dollar disclosure provisions, providing entities and product issuers will be obliged to disclose various fees, benefits, costs and interests as amounts in dollars in the following documents:
Tuesday, September 07, 2004
ASIC Inspection Report
ASIC has issued a report containing its findings on a program of randomly conducted verification visits on Australian financial services (AFS) licensees.
'Most of the AFS licensees visited by ASIC demonstrated that appropriate procedures are in place and working well in practice. Where ASIC identified deficiencies, these issues were generally straightforward and easily addressed by the licensee', Ms Pamela McAlister, Deputy Executive Director of Financial Services Regulation, said.
In a small number of cases ASIC will be undertaking a further compliance review.
The visits examined a number of key areas, including:
ASIC intends to continue conducting random compliance visits on AFS licensees.
Tuesday, August 31, 2004
New Conflicts Policy
ASIC has issued Policy Statement 181 Licensing: Managing conflicts of interest [PS 181] setting out how it expects financial services licensees to manage their conflicts of interest.
PS 181 is based on the new conflicts management obligation for licensees implemented by the Commonwealth Government's Corporate Law and Economic Reform Program (CLERP 9) legislation. The new obligation takes effect from 1 January 2005.
ASIC has released its policy proposal regarding new dollar disclosure obligations.
Dollar disclosure will be required from 1 January 2005. Under the dollar disclosure provisions, providing entities and product issuers will be obliged to disclose various fees, benefits, costs and interests as amounts in dollars in:
Statements of Advice (SOAs);
Product Disclosure Statements (PDSs); and
Unless ASIC makes a determination that, for example, dollar disclosure is not possible, fees and benefits must be disclosed as amounts in dollars.
The policy proposal paper sets out how ASIC plans to approach the dollar disclosure provisions together with how it proposes to use its power to make dollar disclosure determinations.
ASIC expects licensees and product issuers to have plans for complying with the dollar disclosure obligations underway. The six-month transition period exists for licensees and product issuers to make any necessary adjustments to their systems, processes and documents so that they can comply with the dollar disclosure obligations. ASIC may consider extending the compliance date for a short period provided industry participants demonstrate they are taking steps to ensure they can comply with the dollar disclosure obligations.
Friday, August 06, 2004
Regulation of non-cash payment products
A paper entitled ASIC and the regulation of non-cash payment products was recently presented by Mark Adams, Director, Regulatory Policy,Australia Securities and Investments Commission (ASIC).
The paper deals with cheque accounts, travellers cheques, stored value cards, electronic cash, direct debit services, funds transfer services and electronic bill payment services as well as gift vouchers and loyalty schemes.