• Telstra CFO Robyn Denholm has replaced Elon Musk as chair of the Tesla board.
• In Brief | 'Unprecedented' optimism? Despite 74% of local executives being concerned about political stability, EY's 18th Global Capital Confident Barometer has found that there is unprecedented optimism in the state of the global economy among business leaders with 100% of Australian and New Zealand respondents of the view that the local and global economy is either stable or improving.

• A missed opportunity? McKinsey research shows that incoming CEOs are likely to reshuffle their management teams at the beginning of their tenure but that only very few take the opportunity to boost diversity in senior ranks by doing so. 
• Heidrick & Struggles has announced that it has become the first executive search firm to commit to diversity in its board of director searches 
• In Brief | Practical recognition and acceptance of a 'broader' conception of diversity: The SMH reports Westpac's new employment agreement includes paid transgender leave, domestic violence leave, extends parental leave benefits to long-term foster carers, includes paid leave for support carers and includes 'sorry business' leave for Indigenous employees.

• In Brief | Pay cuts at the major banks: ABC reports that the major banks have acted to reduce executive pay in the wake of the Financial Services Royal Commission: Westpac executives received an average 25% cut to short term bonuses; CBA announced that $100m had been cut for 400 executives over the last two years; and NAB announced cuts to its executive pay of up to 15%.

• In Brief | Premier has threatened Myer directors with legal action? Activist Premier Investments' legal team has reportedly issued a letter to Myer's directors demanding the release of the latest quarterly trading figures, an explanation as to why Myer made the decision to stop providing quarterly updates, and information regarding whether any third parties (such as financiers or advisers) have been provided with trading updates.  Reportedly, the letter threatens legal action against the Myer board if these demands are not met.  

• Should US exchanges act to counter the trend for companies to go public with unequal voting rights? The Council of Institutional Investors (CII) recently filed petitions with the New York Stock Exchange (NYSE) and the NASDAQ, asking that both exchanges act to limit listings of companies with dual-class share structures. 

• United States | The Securities and Exchange Commission has announced the agenda and panellists for the 15 November roundtable on possible proxy reforms. 

• In Brief | The New York Times reports that the Shanghai Stock Exchange will test a US style system registration based system for new listings in a bid attract high stakes technology public offerings. 

Australian Prudential Regulation Authority (APRA)

• APRA is consulting on proposed increases to ADI's total capital requirements 'to support orderly resolution in the unlikely event of failure'.  Consultation closes 8 February 2019.
• APRA has released the Private Health Insurance Operations Report 2017/18 detailing the operations and financial activities of registered private health insurers for the previous financial year.

Overseas Developments

• Evidence of a 'philosophical shift in governing that favours big business and prioritises the interests of individual investors' under President Trump? The New York Times has published the results of its investigation into the enforcement approach of the SEC and DOJ under President Obama vs President Trump.

Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry

• Round 7 Hearings: The Financial Services Royal Commission has released the names of entities to appear in the seventh and final round of hearings (though list is subject to change).
• The Financial Services Royal Commission has released submissions received ahead of the final hearings

Submissions in response to the Interim Report 

• Top Story | Additional powers (and funding) for ASIC rather than a narrower remit and/or a separate regulator? ASIC's submission in response to the Financial Services Royal Commission's Interim Report argues against change to the 'twin peaks' model.
• Top Story | UNSW recommendations to address 'conflicted remuneration': UNSW Centre for Law Markets and Regulation submission in response to the Financial Services Royal Commission Interim Report recommends (among other things) that conflicted remuneration provisions be extended to managers and bank executives. 
• Could the professionalisation of the financial advice industry go some way to mitigating the risks of vertical integration? While not opposing the simplification of the law or more rigorous enforcement, the Ethics Centre argues that 'the ethical dimension of reform' should be accorded more weight when considering possible reforms in its submission in response to the Financial Services Royal Commission Interim Report. 
• An answer to the issue of 'conflicted remuneration'?  The Australia Institute's Centre for Future Work has proposed to the Commission that a system of sector wide collective bargaining in the financial services industry could establish clear and ethical benchmarks for compensation and uniform compensation (avoiding the problem of 'conflicted remuneration').  

Submissions in response to Round 5 (Superannuation)

• No need for a separate regulator, ASIC could take on an expanded role for ASIC in supervising conduct in superannuation? ASIC's submission to the Financial Services Royal Commission Round 5 (Superannuation) hearings argues against rethinking the twin peaks model. 
• The Association of Financial Advisers has questioned the need for any change to either grandfathered commissions and/or ongoing fees in its submission to the Financial Services Royal Commission Round 5 (Superannuation) hearings.
• In Brief | The Australian Institute of Company Directors' submission advocates (among other things) a stronger focus on board composition and more particularly a stronger focus on directors' knowledge, skills and experience' as well as clearer delineation of the regulators' roles.  In addition, the submission supports the application of civil liability to breaches by the trustee and trustee directors of the duties to act in the best interests of members and 'targeted measures' to improve the management of conflicts of interest in the industry.  The AICD expresses reservations however, about the extension of the 'best interests' obligation to parties other than the trustee and trustee directors. 

Other Developments

• The Federal Court has ordered penalties and other relief against Westpac for BBSW conduct
• AFS licensees are reminded to provide ASIC with AFCA membership details by 30 November (after which late fees will apply)
• No need to increase the superannuation guarantee? A report by the Grattan Institute has questioned the necessity and the efficacy of raising the superannuation guarantee to 12%.
• In Brief | The Senate Standing Committee on Economics has recommended that legislation that would impose design and distribution obligations and grant ASIC product intervention powers be passed.
• In Brief | Open Banking update: Data61 has released a working draft of the standards that will underpin the Consumer Data Right (CDR). It's proposed that open banking will require the four major banks to make data about their customer’s card, deposit and transaction accounts available to different services by 1 July 2019.  
• In Brief | ASIC is consulting on proposed updates to organisational competence requirements for advice licensees in line with FASEA's draft guidance and in anticipation of the implementation of new professional standards reforms for financial advisers. Consultation will close on 6 December.  An updated regulatory guide will be released in March 2019. 

Overseas Developments

• Top Story | FMA/RBNZ Report on Conduct and Culture in the Banking sector
• Canada | OFSI has released the final version of its corporate governance guideline setting out its expectations for the boards of federally regulated financial institutions

• In Brief | The government is seeking feedback on the tax impacts of implementing a new accounting standard for insurance contracts (AASB17) which will apply for annual reporting periods beginning on or after 1 January 2021 to inform the government's consideration of whether changes to the tax law are required.  Consultation closes 31 January 2019.

Overseas Developments

• United Kingdom | Financial Reporting Council CEO Stephen Haddrill will step down from his role in late 2019.  
• United Kingdom | The FRC has issued a series of reports/guides highlighting areas for improvement in financial reporting practices.
• In Brief | Should directors be more accountable for audit mistakes? In response to the CMA review of the UK audit sector, EY CEO Steve Varley has reportedly suggested to EY partners that the UK should introduce a system comparable to the US Sarbanes-Oxley scheme and directors should be more directly accountable for audit mistakes. 

Cybersecurity 

• Top Story | New cybersecurity prudential standard for banks, insurers and superannuation funds released: APRA has released the final version of its new information security prudential standard CPS234 Information Security for APRA regulated entities.
• 56% of boards still using personal email to communicate about board matters? A global survey targeting governance professionals across 11 countries has found 'underdeveloped' and out-dated communication practices at board level are potentially exposing organisations to increased risk of cyber-attack and inadvertent data leaks. 
• United States | A tougher version of the GDPR? Draft legislation proposing to strengthen privacy protections for US consumers, strengthen the regulator's capacity to oversee compliance and impose tougher penalties is being circulated by Democrat Senator Ron Wyden.  
• Commitment to a new 'contract for the web': Over 50 companies, business leaders and governments (including Facebook and Google) have signed onto new internet standards designed by world wide web founder Tim Berners-Lee.

Climate Risk

• Final SASB sustainability reporting standards released: The Sustainability Accounting Standards Board (SASB) has released 77 industry-specific sustainability accounting standards aimed at providing investors with in-depth information about the impact of a company’s actions on society and the environment.

Whistleblowing

• In Brief | Whistleblower Bill to be strengthened? The Australian reports that Assistant Treasurer Stuart Robert has been tasked with reviewing the stalled Federal Whistleblower Bill (which has not progressed beyond the Senate) in light of concerns it does not go far enough. Reportedly, the government intends to reintroduce a revised Bill before the end of the year.  

Supply Chain Risk

• Consultation on standards to support supply chain integrity 

Other Developments

• In Brief | The New York Times reports that Google will reportedly end forced arbitration for sexual harassment or assault after more than 20,000 Google staff globally staged a walk out in protest over how the company handles sexual harassment/misconduct claims. Facebook has reportedly announced that it will follow suit.
• In Brief | The New York Times reports that Google will reportedly end forced arbitration for sexual harassment or assault after more than 20,000 Google staff globally staged a walk out in protest over how the company handles sexual harassment/misconduct claims. Facebook has also reportedly announced that it will follow suit.

• In Brief | Labor’s proposed anti-phoenix measures: The ABC reports that if elected, Labor plans to bolster the proposed DIN regime and grant the Tax Commissioner powers to publicly 'name and shame' individuals and entities engaged in fraudulent phoenix activity.  Master Builders Australia CEO Denita Wawn has issued a statement welcoming the announcement as a ‘step in the right direction’ but has called on Labor to also support government measures ‘to crack down on union officials and organisations convicted of breaking the law, including disqualification orders for serial offenders’.