Risk Regulatory Update
/AFA and FPA set merger date
The Association of Financial Advisers (AFA) and the Financial Planning Association (FPA) have confirmed the merger date is set for February 2023. Consultation is currently taking place, with final documents issued prior to voting, which opens in early February.
ASIC accepts Lasarith EU
An enforceable undertaking (EU) has been accepted by the Australian Securities and Investments Commission (ASIC) from Lasarith Pty Ltd, trading as Succession Matters and its sole director Adam Smith.
Lasarith is to close its financial services business and cancel its financial services licence by 8 February 2023. Smith must undertake professional training and is disallowed from being a responsible manager of any Australian financial services licence for at least 18 months from 10 November 2022. Lasarith and Smith failed to provide statements of advice to clients from 2017.
Insignia has licence conditions imposed by regulator
The Australian Prudential Regulation Authority (APRA) has imposed additional licence conditions on trustees of superannuation funds within the Insignia Group, including IOOF Investment Management Limited, Nulis Nominees (Australia) Limited, OnePath Custodians Pty Limited and Oasis Fund Management Limited.
The new licence conditions mean Insignia Group trustees must enhance governance in relation to member outcomes, oversight of service providers, risk, compliance and managing conflicts of interest while also appointing an independent expert to assess the governance, accountability and risk management frameworks and practices. Any areas identified of concern by the expert must be rectified.
Adviser registration requirement delayed
The government has shifted the date for financial advisers from 1 January 2023 to 1 July 2023. The registration is set into two stages
ASIC inquiry open for submissions
Consumers and small businesses are now able to submit reports of their experiences with ASIC, with submissions open until 3 February 2023. The inquiry was commissioned by the Senate into ASIC and its ability to investigate allegations of misconduct. Failures by ASIC were identified in the Hayne royal commission.
FSC code updates domestic violence protections
The Financial Services Council (FSC) has added new protections to the Life Insurance Code of Practice, with the new addition of insurers required to develop and publish a policy on supporting people experiencing family and domestic violence, as of 1 July 2023. The Moratorium on Genetic Tests is extended indefinitely.
ASIC appeals CBA and CFS conflicted remuneration dismissal
ASIC has appealed the dismissal of the case against Colonial First State (CFS) and Commonwealth Bank of Australia (CBA) for alleged conflicted remuneration law breaches. ASIC alleged that CFS and CBA breached the law when CFS paid CBA to distribute its Essential Super product via bank branches and online.
