• Governance Changes at the top European banks post GFC: Data from the 25 largest listed banks in Europe shows that boards today are smaller, work harder, and have a higher level of expertise than a decade ago according to research by Nestor Advisors.

• Top Story | Latest AICD report released: 30% female board representation across the ASX 200 by 2018 looks achievable? According to the report, the ASX100 has reached the 30% female board representation target and representation in ASX 200 overall is currently at 27.7%.
• United Kingdom | A UK Treasury Committee Report into female representation and progression in the financial sector has concluded that the underrepresentation of women in senior positions is 'unacceptable' and has made various recommendations for both industry and government to address the issue. The report also recommends that the focus on diversity in the sector be extended beyond gender diversity.
• In Brief | Proposed UK diversity measures likely to be adopted across Europe? A recent post on the University of Oxford Law Faculty blog suggests that diversity initiatives included in the proposed (draft) FRC Corporate Governance Code are likely to be adopted throughout Europe over coming years. The post also suggests that the revised code is unlikely to be finalised until July of 2018 and that this may have knock-on effects for the review and finalisation of the Stewardship Code and ultimately for the implementation of both.

• Possible breach of s180? ASIC has launched civil penalty proceedings against former Quintis managing director but not against Quintis. ASIC's investigations into Quintis are continuing.

• United States | Revision of SEC stock buyback rules on the cards? In a recent speech, SEC Commissioner Robert Jackson has called for the revision of SEC buyback rules and for compensation committees to exercise greater scrutiny to address the trend towards executives using buybacks to cash out shares. 

• Top Story | Consultation on Code of Conduct for UK Private Companies: The FRC has released the Wates Corporate Governance Principles for Large Private Companies (the Principles) for consultation in the same week as new corporate governance reporting requirements are under consideration by parliament. 

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

• Round 4 hearings to focus on farming finance, natural disaster insurance, and interactions between Aboriginal and Torres Strait Islander people and financial services entities.
• In Brief | The Financial Services Royal Commission has released responses to the specific and general submissions made by Counsel Assisting David Hodge QC at the conclusion of Round 3 hearings. Among other things, ASIC states that it has not yet made a determination as to whether it will approve the proposed Australian Banking Association (ABA) Code of Banking Practice.

Other Developments - Australia

• Pre-empting the regulator? Dover Financial Advisers Pty Ltd has elected to cancel its AFSL at short notice, reportedly to avoid the threat of likely suspension or cancellation of its licence by ASIC.
• ASIC has commenced proceedings in the Federal Court of Australia against Westpac in relation to alleged poor financial advice provided by one of its former financial planners (who has since been banned by the regulator).
• ASIC has taken steps to implement the new financial benchmark regulatory regime: ASIC has finalised and published benchmarks rules, a significant benchmarks declaration, and issued a regulatory guide (Regulatory Guide 268 Licensing regime for financial benchmark administrators).
• Consultation on proposed corporate collective investment vehicle (CCIV): Exposure draft Bill: Treasury Laws Amendment (Corporate Collective Investment Vehicle) Bill 2018 and explanatory materials released for consultation.
• Early release of superannuation on compassionate grounds: ATO to administer the early release of superannuation from 1 July 2018.
• In Brief | Superannuation guarantee (SG) integrity package one step closer to passing? The Senate Economics Legislation Committee has released its report on the Treasury Laws Amendment (2018 Measures No 4) Bill 2018 and recommended the Bill be passed. Among other things, the Bill proposes to allow the ATO, to issue directions to employers who fail to comply with their SG obligations to pay unpaid SG and undertake SG education courses and introduces criminal penalties for failure to comply with a direction to pay an estimate of unpaid SG. As at 18 June, the Bill is before the House of Representatives.

Overseas Developments

• United States | SEC has charged Merrill Lynch for overcharging customers for mortgage-backed securities.
• In Brief | The Monetary Authority of Singapore (MAS) is consulting on proposed guidelines for the provision of financial advisory services. 'As part of the financial advisory process, financial advisers will need to engage clients to better understand their personal and financial situation, risk tolerance and financial objectives. It is important for clients to be fully engaged in this process and to understand that providing full disclosure of material information enables suitable recommendations to be made to them' MAS writes. Consultation closes 5 July 2018.

• United Kingdom | The FRC has issued 'record penalties' for admitted misconduct in relation to audit work: The FRC has separately announced sanctions against PwC and KPMG and instituted fines and non-financial sanctions against both firms.
• In Brief | The Financial Reporting Council (FRC) has issued a briefing setting out the current 'hot topics' of its corporate reporting review function to assist in the preparation and audit of interim accounts. Among the issues identified are FRC expectations in respect of new standards IFRSs 9 and 15 and other areas (eg supplier financing arrangements) where recent monitoring activity has identified room for improvement.

• Another step closer to an Australian Deferred Prosecution Agreement scheme? Consultation on new Deferred Prosecution Agreement (DPA) scheme code of practice, setting out the practical operation of the proposed DPA scheme, has been released by the Attorney General for feedback.

• United Kingdom | IoD has urged the UK government to exercise restraint in its response to the recent consultation on proposed changes to corporate governance within companies which are in, or are approaching, insolvency.
• Confidence in the system requires compliance with publication and lodgment requirements: ASIC has released report 573 Registered Liquidators compliance with lodgement and publication requirements which provides guidance to registered liquidators to improve their practice management and efficiency regarding lodgement and publication compliance.

• Fair Entitlements Guarantee Scheme (FEG) reforms: draft legislation has been released for consultation, the purpose of which is to address the corporate misuse of the FEG scheme.