Policy Update - November #3
ASIC announces 2024 enforcement priorities
ASIC has announced its enforcement priorities for 2024; adding two new priorities in relation to the superannuation industry and misconduct in the used car finance sector. Notably, enforcement action in relation to the crypto sector has been removed from the list of priorities.
The list retains existing priorities in relation to greenwashing, enforcing design and distribution obligations, and focus on governance and directors' duties failures.
CDR Action initiation legislation to progress
The Bill containing amendments to implement the framework for Consumer Data Right action initiation has been listed for debate in the Senate this week, following adjournment of debate since March and a Senate committee inquiry.
BNPL consultation delayed until new year
The AFR reports that draft legislation for buy now, pay later providers, originally expected to be consulted on by the end of this year, will be delayed due to resourcing pressures on the government’s legislative drafting teams. We look forward to engaging on this consultation process in the new year.
Consultation on initial financial advice reforms
The Government is consulting on the first tranche of exposure draft legislation in response to the Quality Advice Review's recommendations. These amendments relate to advice provided by superannuation trustees, conflicted remuneration provisions and streamlining how financial services guides/disclosure requirements can be met when providing personal advice.
FinTech Australia does not propose making a submission on this tranche of reforms but will monitor the Government's expected announcement this year on its final position on the outstanding recommendations.
Banks Agree to Scam Safe Accord
The two Australian banking peak bodies, the Australian Banking Association (ABA) and the Customer Owned Banking Association (COBA), have announced a 'Scam Safe Accord' which outlines six priority initiatives to combat scams for banks. These initiatives include to:
Deliver an industry-wide confirmation of payee solution to customers;
Take action to prevent misuse of bank accounts via identity fraud;
Introduce warnings and payment delays to protect customers;
Invest in a major expansion of intelligence sharing across the sector (i.e. AFCX);
Limit payments to high-risk channels to protect customers;
Implement an Anti-Scams Strategy.
Increasing the threshold for the application of the Financial Stability Standards for Securities Settlement Facilities
The RBA has opened consultation on increasing the 'activity threshold' for the exemption for small securities and settlement facility licensees from the Financial Stability Standards. The proposal would increase the threshold value from $200 million to $40 billion. The cohort with the newly proposed threshold will only represent 1% of annual settlement activity for Australian equity securities and less than 1% of annual settlement activity for debt securities.
FinTech Australia visits Canberra
Our Head of Policy, Nick Kavass, travelled to Canberra this week to meet with parliamentarians who are part of the Parliamentary Friends of FinTech and the Digital Economy. Stay tuned for an event for members early next year in Canberra.
