• In Brief | CBA board renewal update: CBA has announced that Paul O'Malley has been appointed as a non-executive independent director with effect from 1 January 2019.  CBA adds that at the request of the board, and to 'allow for sufficient continuity in director succession' Brian Long will remain on the board until the end of the calendar year and will retire at 31 December 2018 and that Andrew Mohl will retire from the Board at the conclusion of the 2018 AGM.  

• Equilar Q2 2018 Gender Diversity Index results: Russell 3000 continues to progress towards boardroom (gender) diversity.  
• The latest Thomson Reuters diversity and inclusion index has ranked Accenture PLC, Novartis AG and Medronic PLC as the top performers (globally) in terms of promoting diverse and inclusive workplaces.  
• In Brief | Spike in US CEO turnover? According to a report by consulting firm Challenger, Gray and Christmas there has been a 15% upswing in the rate of CEO turnover on 2017.  So far, 879 US CEO changes have been recorded this year as compared with 765 changes last year.  In addition, the report found that 22% of new CEOs are women (a 4% increase on August 2017).  The high rate of turnover is attributed to strong competition for talent, increased disruption and uncertainty in the market requiring new skillsets and the impact of tax cuts/consumer spending in some cases.  

• Stronger case for board change at Myer, or wait and see?  Update on Premier campaign to replace the Myer board following the release of company results.

• Update SEC roundtable discussion on the proxy process | SEC has withdrawn letters to ISS and Egan Jones Proxy Services ahead of the planned 'roundtable' discussions on the proxy process. 

• ASIC has commenced a civil penalty action against ANZ in relation to a 2015 Institutional Equity Placement.  ANZ has said it will defend the allegations.
• In Brief | The UK Financial Reporting Council, Financial Reporting Lab has called for investors and companies to volunteer to participate in a new project on the disclosure of climate change and workforce information. The project will consider how the recommendations identified in the Lab's previous reports on business model reporting, risk and viability and performance metrics apply to companies' reporting on climate change and their workforce. 

• In Brief | ASX to tighten technology governance and operational risk controls: ASIC has released a review of technology governance and operational risk controls at ASX Group.  Full implementation of the changes is expected to take up to three years.  The regulator has indicated the recommendations in the report may have broader relevance for boards/senior managers of ASIC regulated organisations in the financial services sector.  
• In  Brief | ASIC has updated the market integrity rules to facilitate the introduction of a new type of financial product that securities and derivatives exchange Chi-X Australia Limited (Chi-X) is introducing to its market, known as transferable custody receipts (TraCRs).

 Australian Securities and Investments Commission

• AFCA implementation update | ASIC has approved the Australian Financial Complaints Authority (AFCA) rules and terms of reference of the AFCA Independent Assessor.
• In Brief | First Australian Digital Council meeting: federal, state and territory governments have convened for the first bi-annual interjurisdictional meeting to improve collaboration on technology issues.  ITNews reports that the Council is expected to agree to focus on fast-tracking the development of digital services and improving data sharing across borders.  'By committing to a strong agenda of collaboration and cooperation, we can learn from each other's experiences and pool our resources to develop systems that can be rolled-out across the country, avoiding costly duplication and accelerating the benefits for citizens and business' Michael Keenan, Council Chair and Federal Minister for Human Services and Digital Transformation commented.
• In Brief | ASIC has issued a reminder urging organisations to act on industry funding before the 27 September deadline: entities need to provide industry funding contact details and submit business activity metrics in the new ASIC Regulatory Portal by 27 September 2018.

Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry (Finanical Service Royal Commission)

• Top Story | Financial Services Royal Commission Round 6 Hearings: Overview of week 1 Life Insurance case studies.

Insurance

• Top Story | APRA has released final prudential standards to strengthen governance, fitness and propriety and audit requirements for private health insurers (PHI).

Superannuation

• In Brief | 'Get your super back' class actions planned?  Reportedly Slater and Gordon is planning to launch a series class actions against retail super funds (possibly commencing with CFS or AMP) following the Financial Services Royal Commission superannuation hearings alleging the funds failed to obtain competitive cash interest rates on cash option funds and charged high fees.  Both the Commonwealth Bank and AMP have said they are yet to be served with legal proceedings.  In a statement, AMP also said it is 'committed to acting in the best interests of our superannuation members' and encouraged any customers who have concerns to contact AMP directly.  

Banking

• Open Banking Update | The ACCC is consulting on a proposed rules framework to implement the Consumer Data Right (CDR) which is proposed to come into operation from 1 July 2019 for the big four banks. 
• In Brief | APRA has released quarterly ADI performance statistics (excluding restricted ADIs) for the June 2018 quarter: The net profit after tax for all ADIs was $36.4 billion for the year ending 30 June 2018. This is an increase of $2.2 billion (6.3%) on the year ending 30 June 2017.  The return on equity for all ADIs was 12.1% for the year ending 30 June 2018, compared to 12.0% for the year ending 30 June 2017.  In terms of ADI numbers, there were 4 fewer ADIs operating in Australia as at 30 June 2018 (143) as compared to 147 as at 31 March 2018.  

Climate Risk

• Changing attitudes to climate risk?  70% of Australians support an orderly transition away from coal power but there is less consensus on when that transition should occur, according to a new report from The Australian Institute.
• Shareholder demands aren't Paris compliant? The latest report from As You Sow has found shareholder engagement is not on track to achieve the changes required for gas and oil companies to meet Paris climate goals and has called on shareholders to demand targeted changes, and ultimately to divest, if their demands are not met. 

#MeToo Risk

• The latest Australian Human Rights Commission (AHRC) survey has found sexual harassment in Australian workplaces is more prevalent than 6 years ago.  The AHRC states that the findings will inform the national inquiry into workplace sexual harassment consultation which will commence later this month.

Other Developments

• United States | The Securities and Exchange Commission (SEC) has announced that United Technologies Corporation (UTC) will pay $13.9 million to resolve SEC allegations that it violated the Foreign Corrupt Practices Act 1934 (FCPA) by making illicit payments in its elevator and aircraft engine businesses.  
• In Brief | The FT reports that ING's CFO, a 22 year veteran of the company, will step down from his role (once a replacement is found) having reportedly been identified by ING in a statement as responsible for the compliance failings that led to the money laundering issues for which it has agreed to pay a record €775m in penalties to the Dutch public prosecutor. 
   

• In Brief | The Crowd Sourced Funding Bill enabling proprietary companies with less than $25m in assets and turnover to raise up to $5m in any 12 month period through crowd-funding platforms has passed the senate: Corporations Amendment (Crowd-sourced Funding for Proprietary Companies) Bill 2017 .  SBS quotes assistant minister for treasury and finance Zed Seselja as commenting that the reforms will 'enable proprietary companies to obtain the capital they need to turn good ideas into commercial successes, while providing Australian investors with a larger pool of choice'.