If you read only one financial services regulatory report in 2018 it has to be the Interim Report of the Financial Services Royal Commission which summarised the evidence of misconduct and the Commissioner’s findings in respect of the first four rounds of hearing held in Melbourne, Brisbane and Darwin between March and July 2018. The Final Report due on 1 February 2019 will guide the future regulatory and enforcement direction for the sector.
A close second is APRA’s CBA Prudential Inquiry Report (published in May 2018). Every Board and Risk Management Committee must read it.
Thematic review
Here’s a list of other important issues by topic.
Broadly these issues relate to improving corporate culture and managing non-financial risk but specific issues such as privacy, cybersecurity, consumer outcomes, responsible lending and changes in technology are consistently relevant.
Acting efficiently, honestly and fairly was a dominant theme. Are soft laws the problem? Or culture?
Privacy
The Mandatory Data Breach Notification regime started on 22 February 2018.
The third OAIC report on notifications identified causes and sectors.
Anti-money laundering
Case note: Austrac v CBA
Dispute resolution
AFCA commenced on 1 November 2018.
Corporate governance
Review of ASX Corporate Governance Principles
APRA remuneration review
BEAR
Social licence to operate
CBA case study
Responsible Lending
Case note: Thorn Radio Rentals consumer lease responsible lending penalty
Case note: ANZ Esanda car loans responsible lending penalty
Case note: ASIC v Westpac
Credit card responsible lending
Small business loans
Unfair contract terms
Online small business lenders code
Banking code of practice
Competition
Productivity Commission Inquiry final report on Competition in the Australian Financial System.
The Productivity Commission draft report on Australia’s Superannuation Efficiency and Competitiveness
Cybersecurity
APRA CPS 234 Information security
Technology compliance risks
Cloud computing outsourcing risks
ASIC
ASIC’s product intervention powers
Misconduct penalties
Case note: ASIC v Westpac (BBSW)
Breach reporting delays
ASIC enforcement priorities
New financial benchmarks regulatory regime
Mutuals
Changes to the Banking Act: use of “bank”, “banker” and “banking” by ADI’s.
Mutual capital instruments
Private health insurance
Private Health Insurance Act amendments
Private health insurer governance standards
Superannuation
APRA action against IOOF entities
Division of responsibilities for regulation of superannuation entities between APRA and ASICÂ
APRA review of superannuation board governance practices
Insurance
Life insurance and general insurance were under constant review: here’s a link to my list
