NEWS

Enhanced Fee Disclosure RG97

What is it? Continuation of ASIC’s project to enhance fee disclosure in PDS. Responsible Entities can choose to opt-in to the regime from 30 September 2020 for PDSs. To opt-in, the RE must make a written record that includes the date of election and the PDS/product to which the election applies. Periodic and exit statements...

Complaints Handling Changes – Internal Dispute Resolution (IDR)

What is it? From 5 October 2021, the law and regulatory guide relevant to how complaints made by retail investors must be handled will change. It applies all AFS Licensees who can offer financial products or services to retail clients. What will OIG be doing? OIG will be reviewing our IDR procedures which may include...

AFS Licensing requirements for FFSPs

The clock is ticking for Foreign Financial Service Providers (FFSP) who offer financial services to wholesale and professional investors in Australia to adopt one of four options under a new Australian licensing regime put in place by the Australian Securities & Investments Commission (ASIC). FFSPs who are currently relying on existing relief from ASIC and…

Design and Distribution Obligations

What is it? From 5 October 2021, issuers and distributors of financial products must comply with the design and distribution obligations in Pt 7.8A of the Corporations Act 2001 (Corporations Act) (D&D Obligations). Any financial product that requires a PDS is included in the range of financial products the D&D Obligations apply to. The D&D...

Changes to Breach Reporting Regime

What is it? ASIC has made significant changes to the way breaches will be reported to it from 1 October 2021. It applies to all AFS Licensees whether wholesale or retail. What will OIG be doing? OIG will be rewriting its policies and procedures that relate to the reporting of breaches. This may require changes...

Retail v Wholesale investors in the provision of Financial Services

What are the major differences between retail and wholesale investors? Retail investors must be provided with a Financial Services Guide (FSG), Statement of Advice (SOA) and where appropriate, a regulated offer document such as a Product Disclosure Statement (PDS) Retail investors have access to external dispute resolution schemes, while wholesale investors generally do not Retail…

New design and distribution obligations and product intervention powers on the horizon

What is it? The Government is seeking to introduce the Treasury Laws Amendment (Design and Distribution Obligations and Product Intervention Power) Bill 2018 (Cth) (“Bill”) into law. The new regime’s purpose is to promote the provision of suitable financial products to consumers by requiring issuers and distributers to appropriately market and distribute financial products aimed…

Corporate Collective Investment Vehicle — third tranche released for public consultation

What is a CCIV? The Corporate Collective Investment Vehicle (CCIV) will be a passive collective investment vehicle that is a public company and is structured as an umbrella fund incorporating one or more sub-funds. These sub-funds are not required to be separate legal entities, thereby allowing the offer of multiple products and investment strategies within…

ASIC’s review of exchange traded products

Earlier today ASIC released Report 583 – Review of exchange traded products (ETPs), which sets out the findings and recommendations of ASIC’s comprehensive review of ETPs in Australia. This report will be of interest to issuers and market operators of ETPs, along with retail investors. Overall, the report found that the market is performing well,…

RG 97 – Independent report makes fee & cost disclosure recommendations

ASIC has released its independent report (the Report) in respect to RG 97 which it commissioned on 1 November 2017 in response to strong feedback from industry regarding challenges associated with the implementation of RG 97 and ASIC Class Order CO 14/1252. The author of the report, Mr Darren McShane engaged more than 120 industry…