Risk Regulatory Update
/AFA asks ASIC to consider new Advice Unit
The Australian Securities and Investments Commission has been asked to consider a new Advice Unit by the Association of Financial Advisers (AFA). The new unit would provide rulings to licensees and advisers regarding clarity of legislation and regulations, in a similar fashion to how the Australian Tax Office (ATO) provides public and/or private rulings to the accounting industry. The submission relates to ASIC’s consultation process on access to affordable advice for Australian consumers.
The AFA said the new unit would help clarify expectations relating to advice laws and regulations as they become increasingly complex and subjective while providing licensees with a mechanism to determine if interpretations of the law are correct. An example is that the Best Interests Duty requires that peers consider the advice reasonable, but there is no peer group set up to be the arbiters of such advice. The unit would also assist in the development of good policies, tools and technology.
Kaplan offers free FASEA exam preparation support
Advisers who are yet to pass the Financial Adviser Standards and Ethics Authority (FASEA) exam can get free exam preparation support from Kaplan Professional. The company is offering three free practice exams and webinars and paid individual tutoring.
APRA releases policy and supervision priorities for 2021
The Australian Prudential Regulation Authority (APRA) has published its policy and supervision priorities for 2021. The key focus is on enhancing the resilience and crisis readiness of Australians financial system. Most of 2020’s agenda was postponed due to the pandemic disruptions. APRA will be working with the industry to deliver its regulation to support a resilient, competitive and innovative financial sector that can support pandemic recovery strategies.
Important to APRA this year is:
Finalising the revised remuneration standards
Strengthening crisis preparedness
Updating standards
Complete review of capital framework for authorised deposit-taking institutions
Support implementation of Your Future, Your Super reforms
Continue to strengthen the capital framework for health insurers
Maintaining financial system resilience
Increase scrutiny on cybersecurity capabilities
Embed new remuneration standard and other surveys and reviews
Address MySuper underperformance issues and take action where appropriate
