Governance News 2 September 2020

60 minute read (PDF download) 01.09.2020 Mark Standen, Siobhan Doherty, Kate Hilder

COVID-19 Special Edition

This issue of Governance News covers: a) key COVID-19 related developments including a discussion between MinterEllison Managing Partner Annette Kimmitt and ANZ CEO Shayne Elliott about the role purpose can play in the COVID-19 era; b) ESG and climate related developments including the launch of the UK government's consultation on the imposition of new climate risk governance and TCFD reporting requirements on certain pension schemes; c) various financial services and regulatory developments including the release of ASIC and APRA's updated corporate plans and recent enforcement actions; d) the release of the ALRC's final report into corporate criminal responsibility and more.

COVID-19 Key Developments Navigation Show below Hide below

Top Story | COVID-19 and 'new normal': The role of purpose in the COVID-19 era and beyond
Extension of the JobKeeper Scheme: The Coronavirus Economic Response Package (Jobkeeper Payments) Amendment Bill 2020 has passed both Houses
COVID-19: ABS data shows larger businesses are struggling less than small ones as a result of the pandemic
In Brief | According to Roy Morgan 10.4m employed Australians (67% of employees) have experienced some change to their working conditions because of
COVID-19. The proportion of employees impacted has been highest in Tasmania (74%), Victoria (70%) and NSW (70%)
In Brief | In its pre-budget submission to the federal government, The Australian Financial Markets Association called for the introduction of a range of measures to 'support the vital role of financial markets' in the COVID-19 recovery. Among other things, AFMA proposes that the government establish a 'test case scheme' for ASIC (based on the ATO's test case scheme)

Remuneration Navigation Show below Hide below

Incorporating ESG metrics into executive remuneration plans: Semler Brossy analyses Fortune 200 companies' current approach
In Brief | 'If you're getting taxpayer subsidies, the CEO should not be getting a bonus': Shadow Assistant Minister for Treasury and Charities Andrew Leigh has attacked the 'small number of firms' who are 'channelling' support payments to executive bonuses or into payment of dividends
In Brief | Equal Pay Day in Australia was 28 August but drilling down it varies in different states. In NSW and QLD it's 4 September according to Workplace Gender Equality Agency data

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Top Story | Mandatory climate governance and TCFD reporting requirements for pension funds: UK government consultation launched
In Brief | ESG and the role of institutional investors: PRI has released an interview with Rodrigo Garcia, Deputy State Treasurer and Chief Investment Officer for the Illinois State Treasury, which was the first treasury in the US to become a PRI signatory, on the role of investors in addressing social issues and how ESG fits into investors' fiduciary obligations
In Brief | The Guardian reports that CBUS has committed to zero emissions across its entire portfolio by 2050, though the fund has reportedly stopped short of ruling out absolutely, new investments in thermal coal

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RMIT/UNAA report finds that ASX 100 companies are increasingly reporting against the SDGs but that the quality and consistency of reporting needs improvement
In Brief | Making temporary changes to continuous disclosure laws permanent is unjustified and would undermine confidence in the market? The AFR reports that activist funds oppose the proposal to permanently insert a fault element into disclosure laws

Regulators Navigation Show below Hide below

ASIC has released its 2020-2024 strategic plan: enforcement remains a key priority
APRA has released an updated corporate plan incorporating adjustments to priorities in light of the changed environment
COVID-19 has been a 'real world test' of the operational resilience of Australia's financial sector: APRA reflects on how the sector has performed and the key 'lessons' from a supervisory perspective to emerge from the crisis to date

Financial Services Navigation Show below Hide below

Engagement with debt management representatives: ASIC issues clarification on the circumstances in which it is appropriate for financial firms not to engage
Uptick in reported breaches of the Banking Code of Practice: The Banking Code Compliance Committee has released its latest report into Code compliance
COVID-19: So far funds have paid out $32.2bn under the government's early release of superannuation scheme, the data indicates that the number of applications coming through continues to slow
Superannuation guarantee hike in doubt? Survey finds that only 29.5% of economists believe that the planned superannuation guarantee increase should proceed as planned
COVID-19 Early release of superannuation scheme: Report finds that the gender superannuation gap is set to widen for women who have accessed their savings early under the scheme
Senator Jane Hume has called on the super industry to invest in raising financial literacy levels among women
APRA is pushing ahead with its multi-year superannuation data collection project: final consultation package on phase one released
AIST Governance Code: Delay in review timetable announced
ICA data shows insurers have paid out $3.85bn to customers impacted by the summer bushfires, floods and hailstorms
ASIC has confirmed that it will not proceed with any enforcement action against CBA in connection with AUSTRAC proceedings
Hayne superannuation referral: APRA issues directions and imposes RSE licence conditions, but finds no breach of the SIS Act
In Brief | Treasury Laws Amendment (More Flexible Superannuation) Bill 2020 which will (if passed) enable individuals aged 65 and 66 to make up to three years of non-concessional superannuation contributions under the bring forward rule, has passed the House of Representatives and progressed to second reading stage in the Senate