Australia & NZ

A former adviser of NAB-owned Godfrey Pembroke failed to act in his clients' best interests by recommending they invest in a mobile payments start-up that later failed.

Fund managers have been paying 'conflicted' up-front commissions to financial advisers and brokers under a 2014 exemption, which ASIC says has resulted in worse investment returns.

The case will focus on NAB's alleged failure to transfer A$6.3mn of accrued default amounts to MySuper in a timely fashion, as required by law.

The government will consider expanding the consumer data right to allow 'write' access by entities other than banks, similar to how the EU's PSD2 operates.

FAR will replace BEAR and apply to insurers, superannuation entities, financial holding companies and eventually ASIC licensees, with higher penalties for breaches.

The CFTC has ordered Propex Derivatives to pay $1mn, comprising restitution, disgorgement, and a civil monetary penalty. The DOJ has also entered a deferred prosecution agreement with the firm.

ASIC is reviewing whether sales commissions paid by fund managers to brokers or financial advisers to sell funds compromise the best interests of investors.

The signing of the MOU brings the number of jurisdictions AUSTRAC shares regulatory intelligence with to five, on top of 93 MOUs it has with financial intelligence units.

A retail CBDC could ultimately hurt commercial banks, as it would translate to a fall in deposits and a reduction in the availability of funds for lending to households and businesses, the RBA says.

An ASIC review of advice files found a failure to make sufficient inquiries into client circumstances and existing financial products when providing advice.