Governance News 18 August 2021

45 minute read + (pdf download) 18.08.2021 Mark Standen, Siobhan Doherty, Kate Hilder

This week's issue features coverage of several developments connected with implementation of the Hayne Commission recommendations including ASIC's proposed approach to enforcement of upcoming reforms and themes to emerge from submissions to the separate consultations on the proposed Financial Accountability Regime (FAR) and Compensation Scheme of Last Resort (CSLR). We also cover a range of key ESG, risk and governance developments and more….

Diversity Navigation Show below Hide below

Improving gender balance in investment management teams: FSC launches Women in Investment Management Charter
A group of UK Asset Owners has launched a new Diversity Charter as part of a broader project to accelerate diversity across the sector

Shareholder Activism Navigation Show below Hide below

BHP targeted with second shareholder ESG resolution
AGL board opposes shareholder resolutions and shareholder board candidate's election ahead of the upcoming
Shareholder climate resolution filed at CBA

Institutional Shareholders and Stewardship Navigation Show below Hide below

New York State Retirement fund to divest shares in a further five coal producers (including an Australian listed company), and has put a further 42 companies on notice

Meetings and Proxy Advisers Navigation Show below Hide below

Top Story | Status update meeting and execution requirements: TLA Bill now law
Treasury Laws Amendment (COVID-19 Economic Response No 2) Act 2021 now in force
ASX has issued a reminder to listed entities to allow sufficient time for ASX to review draft notices of general meeting

Regulators Navigation Show below Hide below

Top Story | Hayne implementation: ASIC to adopt a 'reasonable approach' to implementation of upcoming reforms
Climate Risk: ASIC and APRA have faced queries from a parliamentary joint committee on the extent to which they may be contributing to the withdrawal of capital from carbon intensive industries

Financial Services Navigation Show below Hide below

Hayne implementation: Both industry associations and consumer groups have raised concerns about the proposed CSLR
Hayne implementation: Consumer groups recommend 10 changes to strengthen the proposed FAR arguing that as currently drafted it is 'deficient in many important areas'
Hayne implementation: AIST suggests improvements to the proposed Financial Accountability Regime (FAR)
Supporting Hayne implementation: FSC consults on possible options for the removal of occupational exclusions within default life insurance policies in MySyper offerings
A tougher approach: APRA has finalised its approach to licensing and supervision of new ADIs
Use of unfair contract terms: ASIC cautions insurers on the use of unfair contract terms following a recent Federal Court decision
Consultation on the proposed extension of the financial reporting and auditing requirements in Chapter 2M of the Corporations Act to RSEs
Superannuation portfolio holdings disclosure: Consultation on draft regulations
In Brief | MySuper performance testing: APRA has released an information paper outlining its approach to administering the annual performance test for superannuation products and outlining its methodology for combining investment performance in the performance test
In Brief | More time: APRA has published additional FAQs to provide further guidance to RSE licensees on the reporting standards for Phase 1 of the Superannuation Data Transformation project. The update includes an extension to the timeframe for the initial submission of 30 June 2021 data related to trustee-directed products from 30 September 2021 to 28 October 2021 'to allow sufficient time to implement reporting'

Risk Management Navigation Show below Hide below

Top Story | Expanding the Consumer Data Right
Consultation on proposed expansion of the CDR to the energy sector
Cyber breach disclosure: Pearson pays $1 million to settle SEC charges
In Brief | Labor has reintroduced a Bill – the Ransomware Payment bill 2021 (No 2) – that if passed, would mandate reporting of ransomware payments and other key details of ransomware attacks by in-scope companies