Governance News 13 April 2022

45 minute read + (PDF download) 13.04.2022 Mark Standen, Siobhan Doherty, Kate Hilder

This week's issue has a strong financial services and includes updates on the status of key Hayne-related Bills (eg FAR and CSLR Bills) in light of the calling of the Federal Election. This issue also includes coverage of various significant ESG, regulatory and risk developments and more...

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Top Story | Global report finds that shareholder activism globally is showing signs of bouncing back from the pandemic
Individual audit committee members and auditors targeted by Climate Action 100+ over climate audit reporting concerns
Not enough: Sainsbury's investors to push ahead with shareholder living wage resolution, despite new commitments by the company
SEC rejects BlackRock's request to omit a shareholder climate stewardship proposal
SEC rejects State Street's request to block a shareholder climate resolution ahead of the AGM
In Brief | 'Say on climate': 77.74% of UBS shareholders voted to endorse the bank's climate plan at the 6 April 2022 AGM
In Brief | Not in alignment with Paris: The ACCR has urged Glencore shareholders to vote against the 'say on climate' resolution and against the reelection of Glencore NED and Environmental Committee Chair on the basis that the company's coal expansion plans are not consistent with goals of the Paris Agreement
In Brief | Twelve shareholder proposals (coordinated by the ICCR and Investors for Opioid and Pharmaceutical Accountability) seeking disclosure from major pharmaceutical companies around their practices to promote equitable access to medicines (eg COVID-19 vaccines) are set to advance to a vote after the SEC rejected requests by the companies to omit them
In Brief | Twitter CEO Parag Agrawal has tweeted that the company's largest shareholder and Tesla CEO and founder Elon Musk has turned down the offer of a seat on the Twitter board, reversing a previous announcement that Mr Musk would take up a seat. Mr Agrawal said that he believed the decision is 'for the best' and called on the company to 'tune out the noise' and 'focus on what we're building'

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CalSTRS to step up pressure to act on climate action and board diversity this proxy season
New York City Retirement System secures commitments by 11 companies to disclose workforce diversity data
Investor coalition calls on BlackRock, Vanguard, Fidelity and State Street to throw their support behind critical shareholder racial justice proposals this proxy season

ESG Navigation Show below Hide below

Proposed longer period of notice for the closure of power stations
In Brief | Bank of America, BNP Paribas, Citi, Crédit Agricole CIB, Societe Generale and Standard Chartered have joined an initiative aiming to develop a climate-aligned finance framework to support decarbonisation in the aviation industry. As part of this, the lenders have committed to annually assessing and disclosing, consistent with the UN-convened Net-Zero Banking Alliance, the degree to which GHG greenhouse from aircraft, airlines and lessors that they finance are in line with 1.5°C climate targets
In Brief | New Australian gas projects are facing an 'uncertain' future? New IGCC report finds that that under 1.5°C, Paris-aligned climate scenarios, new Australian gas projects 'may be economically challenged, and investors are likely to be cautious of capital expenditure in the sector'
In Brief | The SumofUs is calling on interested stakeholders to sign a petition asking Japanese car manufacturer Toyota to align its climate lobbying efforts with its 'green reputation' (including ceasing its opposition to electric vehicle and clear air laws). The move follows statements by the company that UK net zero plans will put UK factory jobs at risk

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Global report highlights a link between gender diverse leadership teams and stronger financial returns

Markets and Exchanges Navigation Show below Hide below

The ASX is consulting on proposed changes to the ASX Listing Rules

Financial Services Navigation Show below Hide below

Top Story | What does the calling of the Federal Election mean for the FAR and CSLR Bills?
Top Story | Status update: Tracking progress against each of the Hayne Commission's 76 recommendations
ASIC extends CFD product intervention order for five years
COVID-19: Financial advice relief to be allowed to lapse
Senate Estimates hears ASIC's digital transformation is a top priority for the regulator, climate risk disclosure is also a focus
Time for regtech to be more ambitious? ASIC Commissioner reflects on the potential opportunities for the sector in light of the rapidly changing environment
ASIC Commissioner provides insights into ASIC's work in the area of crypto-asset investing
Cryptocurrency lender charged with making false claims that it held an ACL
The government has called on the CFR to advise on possible options to address the issue of de-banking for 'financial technology firms, digital currency exchanges, and remittance providers'
Superannuation trustees to take steps to tighten their governance practices following ASIC's surveillance of investment switching
In Brief | The Financial Services Council has released guidance to assist superannuation trustees and fund managers with divestment of Russian assets in a way that is 'consistent with the best financial interests of members and trustees’ legal and fiduciary obligations'
In Brief | APRA has added the UK's Prudential Regulation Authority and Financial Conduct Authority to the list of foreign regulators whose margin requirements are eligible for substituted compliance in Attachment D of CPS 226
In Brief | APRA is consulting on proposed interim reporting standards to accompany the updated capital adequacy and credit risk capital requirements for ADIs. APRA proposes that the interim reporting standards and consequential and other updates will be effective for the reporting period ending 31 March 2023. The due date for submissions is 7 June 2022
In Brief | In his address to the US Chamber of Commerce, APRA Chair Wayne Byres reflected on the role of regulators in regulating the rapidly evolving financial system, including (potentially) 'new forms of money' eg cryptocurrency. Commenting of APRA's approach to this challenge Mr Byres said: 'We [APRA] are first and foremost a safety regulator, with a mandate from the Australian Parliament to promote stability. That does not, however, translate to limiting change with a view to preserving the status quo. Nor does it mean protecting incumbent financial institutions, when better, safer and more efficient ways of doing business emerge. If technology can deliver a financial system that is indeed better, safer and more efficient, our task is to embrace the changes for the benefit of the Australian community'.

Accounting and Audit Navigation Show below Hide below

Putting leaders on notice: PCAOB takes 'first time disciplinary action' against former KPMG vice-chair over failure to reasonably supervise personnel
Monitoring Group calls for stakeholders who benefit from high quality international audit and ethics standards to fund the ongoing work/independence of the standard setting structure

Risk Management Navigation Show below Hide below

Top Story | Incident reporting and asset register obligations now in effect under SOCI
Review of the Commonwealth Modern Slavery Act 2018 to be completed by 31 March 2023
ABA releases first in a series of sector specific working papers on modern slavery
In Brief | AUSTRAC has released new guidance to assist detecting and stopping suspicious activity related to forced sexual servitude. AUSTRAC has also flagged that it intends to release two new financial crime guides focused on ‘Preventing the criminal abuse of digital currencies’ and ‘Detecting and reporting ransomware’ in the near future

Other News Navigation Show below Hide below

PMC launches consultation seeking feedback on how regulators can support businesses to 'drive investment'
In Brief | The Labor led Senate Committee inquiry into the government's COVID-19 response has made 19 recommendations to strengthen preparation and planning for future pandemics including (among others) establishing a Royal Commission into the pandemic response

Contact

Mark Standen

Consultant, Sydney
- +61 2 9921 4902
- +61 412 104 902
Siobhan Doherty

Partner, Sydney
- +61 2 9921 4339
- +61 413 187 544

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Governance News 13 April 2022

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