Financial Services Thinking is our monthly wrap-up of financial services regulatory news and important industry developments. This useful resource helps you keep track of the latest news at a glance. In this edition we share the latest from ASIC and Treasury.
You're welcome to share Financial Services Thinking with your friends and colleagues, and we value your feedback.
ASIC's product intervention order imposing restrictions on the issue and distribution of 'contracts for difference' (CFDs) to retail clients took effect on 29 March 2021. The intervention order reduces the CFD leverage available to retail clients and prohibits the use of certain sales tactics.
ASIC saw the need to take action against CFD market operators following a review of the industry and public consultation.
ASIC has also made a product intervention order banning the issue and distribution of binary options to clients after an ASIC review revealed approximately 80 percent of retail clients lost money when trading in binary options.
On 4 March 2021, ASIC released its 2019-20 Cost Recovery Implementation Statement which provides regulated entities (such as AFS licensees) with details about the costs of ASIC's regulatory activities for each industry subsector and how these costs will be recovered from the industry.
ASIC has again taken a 'no-action' position in relation to the holding and convening of virtual meetings for corporations. ASIC's no-action position will—
ASIC has also indicated they will not be provided any further non-action position in respect of electronic signatures.
You can read more about ASIC's no action position for virtual meetings in our recent Alert. For background information about these recent developments please see our alert Electronic execution, virtual meetings, and continuous disclosure in doubt.
We will keep you up to date with further developments. If you need help understanding how this impacts you and what steps you need to take, then please contact us. We can help.
Treasury is currently seeking public consultation on draft regulation amendments and explanatory materials for changes to regulations supporting the breach reporting rules in Schedule 11 of the Financial Sector Reform (Hayne Royal Commission Response) Act. Schedule 11 implements recommendations following the Royal Commission which—