Australia

Securities / Derivatives

NZ FMA Identifies Weaknesses in Fund Custody Arrangements

By Editors | 17/12/2019

An FMA review found that custody administration tasks are often being delegated back to fund managers, which weakens the separation of functions and duties.

Capital / Liquidity

APRA Investigates Westpac, Imposes Capital Surcharge

By Editors | 17/12/2019

APRA’s investigation will focus on the conduct that led to Westpac’s alleged 23 million AML breaches, and whether its senior managers breached the Banking Act, including the BEAR.

Market Infrastructure

APRA Delays Implementation of Product Responsibility under BEAR

By Editors | 16/12/2019

APRA will delay finalising its consultation on the product responsibilities under BEAR to align with the government’s proposed extension of the accountability regime.

Enforcement

RBNZ Orders ANZ New Zealand to Improve Director Attestation Processes

By Editors | 16/12/2019

A report from Deloitte shows some level of complacency in ANZ’s director attestation framework, but no evidence of a culture that supports non-compliance or deception.

Market Infrastructure

ASIC Increases Scrutiny on Audit Practices as Quality Drops

By Editors | 16/12/2019

ASIC’s latest inspection results show that audit firms did not obtain the required assurance in 26% of examined key audit areas, particularly in the audit of revenue and non-financial asset impairment.

Enforcement

APRA Imposes Licence Conditions on CBA-owned Avanteos Investments

By Editors | 13/12/2019

CBA-owned Avanteos Investments charged over 2200 deceased members adviser service fees for 15 years, resulting in a total financial impact of over A$6mn.

Capital / Liquidity

APRA Updates Prudential Standard on Credit Risk Management

By Editors | 13/12/2019

The revised prudential standard on credit risk management will come into effect from 1 January 2021, six months later than was proposed in a March consultation.

Big Picture

RegTech Association Flags Under-Investment in Australian Regtech

By Manesh Samtani | 12/12/2019

Despite Australia having everything needed to be a global RegTech leader, mainstream adoption is being stymied by an equity gap, says new research from the RegTech Association.

Securities / Derivatives

ASIC Allows Non-transparent Active ETFs to Remain Non-Transparent

By Editors | 12/12/2019

Active ETF providers will have to implement new controls to manage risks associated with internal market making models, but they will be allowed to continue to hide their holdings.