Australia: ASIC Gears Up Enforcement Activity

Dec 08 2022

By Jim Bulling and Anabelle Weinberg

1. ASIC takes further action on greenwashing

ASIC has issued three infringement notices to investment manager Vanguard Investments Australia Ltd (Vanguard) in further action against alleged greenwashing.

ASIC was concerned that Product Disclosure Statements for the Vanguard International Shares Select Exclusions Index Funds may have misled the public by overstating an investment screen which claimed to prevent investment in companies involved in significant tobacco sales.

Australian Regulatory Update – 28 November 2022

Dec 01 2022

By Jim Bulling and Anabelle Weinberg

1. New requirements for Australian Superannuation Funds in relation to unlisted assets

The Australian Prudential Regulation Authority (APRA) has revoked Prudential Standard SPS 530 Investment Governance and issued a new version which will commence on 1 January 2023.

Australian Regulatory Update – 21 November 2022

Nov 23 2022

By Jim Bulling and Anabelle Weinberg

1. “Finfluencers” pivot following warnings from ASIC and become authorised to provide general financial product advice

Earlier this year, ASIC put social media “finfluencers” on notice after warning that they could face imprisonment and hefty fines if they do not obtain an AFSL or do not stop promoting financial products online.

Australian Regulatory Update – 14 November 2022

Nov 22 2022

By Jim Bulling and Anabelle Weinberg

1. Bitcoin plunges as FTX Trading files for bankruptcy – calls for more transparency from crypto exchanges

Bitcoin has plunged following the fall of FTX Trading (FTX). It remains unclear when or if traders will be able to recoup their money from FTX.

In response to the collapse of FTX and in an effort to retain confidence in their platforms, a number of large crypto exchanges have published Proof of Reserves showing that the levels of assets that they hold match their liabilities to customers.

Australia: ASIC Stays True to DDO Enforcement Promises

Nov 16 2022

By Kane Barnett and Bernard Sia

Since 1 October 2021, when the design and distribution obligations (DDO) commenced, ASIC has issued 13 DDO‒related stop orders.

What has non-compliance looked like so far?

ASIC’s first DDO stop order was issued in July 2022 when ASIC identified a target market determination (TMD) that included retail investors for whom the investment would not be appropriate. The other initial interim stop orders related to the failure to prepare a TMD.

Australian Regulatory Update – 7 November 2022

Nov 07 2022

By Jim Bulling and Anabelle Weinberg

1. ASIC Annual Forum

The ASIC Annual Forum was held on 3 – 4 November 2022 with a number of significant announcements being made.

Firstly, ASIC has for the first time announced their enforcement priorities for 2023. ASIC now intends to do this on an annual basis.

Australian Regulatory Update – 2 November 2022

Nov 02 2022

By Jim Bulling and Anabelle Weinberg

1. ASIC takes its first ‘greenwashing’ action

ASIC has taken its first ‘greenwashing’ action against Tlou Energy Limited (Tlou). Tlou has paid a total of $53,280 to comply with four infringement notices issued by ASIC over concerns about alleged false or misleading sustainability-related statements. Tlou have not admitted guilt.

Australia: ASIC releases its first insights from the reportable situations regime

Oct 28 2022

By Jim Bulling and Hugo Chow

In ASIC’s first annual report regarding the reportable situations regime, it noted that there were over 8000 reports made to ASIC by financial services and credit licensees under the regime from 1 October 2021 to 30 June 2022.

Australia: Australian Government abandons introduction of limited partnership structure

Oct 26 2022

By Kane Barnett

The Australian Government has delivered the 2022-23 Federal Budget. One of the announcements relevant to the investment funds industry was that the Government “has reviewed and will not proceed with … the 2016–17 Budget measure that proposed introducing a new tax and regulatory framework for limited partnership collective investment vehicles”.

Australia: Regulatory update – 24 October 2022

Oct 24 2022

By Jim Bulling and Hugo Chow

ASIC’s crackdown on product disclosures continues

To date, ASIC has issued 11 design and distribution obligations stop orders, with the first stop orders being issued in July this year.

The latest interim stop order prevent a fund management firm (the Firm) from offering or distributing three funds (the Funds) to retail investors due to the Firm not having compliant target market determinations (TMDs).

Tag:Australia

1. “Finfluencers” pivot following warnings from ASIC and become authorised to provide general financial product advice

1. Bitcoin plunges as FTX Trading files for bankruptcy – calls for more transparency from crypto exchanges

1. ASIC Annual Forum