Governance News 18 November 2020

60 minute read (PDF download)  17.11.2020 Mark Standen, Siobhan Doherty, Kate Hilder

In this issue we cover key financial services and regulatory developments including: the introduction of legislation to implement a raft of Hayne reform measures; the second round of consultation on APRA's cross-industry remuneration standard (CPS 511 Remuneration); the release of ASIC's report into the buy now pay later sector, and the PJC's final report into the regulation of auditing.  We also cover key ESG and risk related developments and more….

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Remuneration Navigation Show below Hide below

  • Top Story | Take two: APRA consults (further) on new less prescriptive remuneration requirements

Institutional Shareholders and Stewardship Navigation Show below Hide below

  • France: Investors are pushing SBF 120 companies to meet a 30% female representation target by 2025
  • In Brief | Modern slavery: Investor group - Investors against slavery and trafficking – is reportedly pushing ASX 100 companies to prioritise and take concrete actions towards tackling the risk of labour exploitation in their supply chains
     

Meetings and Proxy Advisers Navigation Show below Hide below

  • COVID-19: ASIC says a further extension on the 'no action' position on holding of AGMs is unlikely at this stage (though it will continue to monitor conditions)
  • In Brief | Why not make voting more transparent? Writing in The AFR, Ownership Matters Director Dean Paatsch has called tighter regulation of vote counting at AGMs and expressed support for the government's proposal for all votes be conducted by poll
     

Disclosure and Reporting Navigation Show below Hide below

  • In Brief | The FRC has released its annual end of year letter outlining reporting expectations for 2020/21.  Disclosure of climate risk, Brexit-related risks, COVID-19 risk and reporting on workplace engagement are among the topics covered

Markets and Exchanges Navigation Show below Hide below

  • ASIC is 'actively assessing ASX’s compliance with its market licence obligations and is considering further actions' in the wake of the November 16 ASX outage and subsequent data issues impacting the ASX Centre Point matching system

Regulators Navigation Show below Hide below

  • COVID-19 recovery | Treasurer says that financial regulators need to 'pursue their mandates in a manner that is consistent with the will of the Parliament'
  • ASIC's current priorities and upcoming reforms: ASIC Commissioner Sean Hughes outlines ASIC's focus areas
     

Financial Services Navigation Show below Hide below

  • Top Story | Legislating Hayne reforms: Hayne omnibus Bill introduced
  • Still outstanding? Hayne measures planned to be introduced by December 2020
  • BNPL Review released: ASIC does not recommend regulatory change, but does flag its willingness to act if industry fails to address consumer harm
  • ASIC is seeking feedback on how access to affordable 'limited' financial advice can be improved
  • Top Story | Judgment or not, superannuation trustees must not ignore climate risk
  • Your Future Your Super package: Senator Jane confirms that the government 'will be legislating to compel superannuation trustees to act in the best financial interests of their members'
  • ASIC priorities in the super sector for 2020-21: Ensuring delivery of strong member/consumer outcomes is the regulator's key focus
  • COVID-19: So far funds have paid out $35 billion under the government's early release of superannuation scheme
  • ASIC says insurers should be planning now for AASB 17 Insurance Contracts
  •  AFCA data shows a 14% uptick in complaints in between 1 July 2019 and 30 June 2020
  • In Brief | 'Through the worst'? ABA data indicates that the majority of deferred loans are now 'back on track' with the value of deferred loans by the seven largest banks now at $86 billion (down from a $250+ peak in June)
     

Accounting and audit Navigation Show below Hide below

  • Final report: The final report from the PJC Inquiry into the regulation of auditing in Australia stands by the ten recommendations in the interim report
  • In Brief | The AASB is seeking feedback from interested stakeholders to help inform its submission to the IFRS Foundation consultation on the development of international sustainability standards.  Stakeholders are invited to share their response by 30 November
  • In Brief | The FRC's 2019/20 audit inspection of 130 audits (primarily covering audits with year-ends between July 2018 and June 2019) identified that 38% (49 audits) required either improvement or significant improvement.  The most common area needing improvements was the 'sufficiency of challenge of management'
     

Risk Management Navigation Show below Hide below

Climate Risk

  • Top Story | Navigating climate dynamics: three key matters for energy & resources
  • Climate change Bills referred to House Committee for inquiry and report

Privacy, Technology and Cybersecurity 

  • OAIC releases its annual report for 2019-2020
  • The DTA has launched a consultation on the design of draft legislation to implement an expanded Digital Identity system in Australia

Restructuring and Insolvency Navigation Show below Hide below

  • Small business insolvency reforms Bill introduced, consultation on subordinate legislation launched

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