Governance News 20 September 2023

45 minute read (PDF download) 20.09.2023 Mark Standen, Siobhan Doherty, Kate Hilder

This week's issue has a strong risk focus. We cover speeches from ASIC Chair Joe Longo and Minister for Home Affairs Clare O'Neil to the AFR Cyber Summit. On the financial services front, the FAR Bills received Assent and the ABA's new Banking Code is anticipated to be in place in 'early 2024' (subject to ASIC approval). On the ESG front, the Taskforce on Nature-related Financial Disclosure (TNFD) framework has been released, SBTi has flagged plans to split out its validation function from its target setting function, California is another step closer to introducing mandatory climate disclosure requirements and more…

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Gender parity on Russell 3000 boards not projected to be reached until 2040

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Greenwashing | Key takeaways from the Law Council of Australia's submission to the Senate greenwashing inquiry
Boosting credibility: SBTi flags plans to split out its validation function from its target setting function
Another step towards mandatory climate disclosure in California: Governor commits to signing climate Bills into law
US Treasury releases new (voluntary) Principles for Net Zero Financing and Investment
A framework to enable exchanges to designate listed shares as 'green': WFE opens public consultation on WFE Green Equity Principles and Guidance
Report puts forward suggested measures to overcome key barriers to accelerating the pace of the net zero transition
As You Sow says 'out of control' executive pay is a 'material risk' for business deserving of sharper shareholder focus
In Brief | The Taskforce on Nature-related Financial Disclosures (TNFD) has launched its final recommendations – a risk management and disclosure framework to identity, assess and manage nature-related risks. The TNFD framework has been developed to be consistent with the ISSB standards. The IFRS has welcomed the release of the TNFD framework and confirmed that the ISSB will 'look to the TNFD recommendations…in its future work'

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NYC Pension Funds sue Fox News board over alleged failure to manage (what the funds consider) was the foreseeable risk of defamation litigation
In Brief | NBIM outlines new climate expectations of companies, makes clear that it expects companies not to 'count carbon credits towards science-based interim emission reduction targets'

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Independent review of the recent changes to continuous disclosure regime to report by early 2024, government appoints reviewer

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Top Story | FAR status update: FAR Bills now law
Supporting FAR implementation: National Consumer Credit Protection (Large ADI) Determination 2023 registered
New Banking Code anticipated to be in place in 'early 2024' (subject to ASIC approval)
Financial advice registration requirement (further) extended to 1 February 2024
CPS 230 implementation: Existing APRA prudential standards on operation risk management to be replaced
In Brief | The AFR reports that banks have called on the government to follow the UK in adopting a 'regulatory grid' – a two-year outlook of upcoming regulatory reforms – to provide banks with certainty around upcoming reforms

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PJC Audit Inquiry: ASIC's submission to PJC Inquiry underlines it has limited jurisdiction to act, suggests two changes to 'enhance the quality of financial reporting and its audits'

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Top Story | Key insights from the latest NDB data breach report
Top Story | Directors on notice: ASIC urges boards to prioritise cyber
National 2030 Cyber strategy to centre around six 'shields'
Legislation to ban credit cards for online gambling introduced
In Brief | The government has released four packages of draft legislation for consultation aimed at strengthening the integrity of the tax system (including the proposed extension of existing whistleblower protections to a new range of disclosures related to potential misconduct by tax practitioners) and increasing the powers of regulators. The legislation is planned to be introduced in 2023 (following consultation)