• In defence of the strengths of our existing corporate governance structure: 'regulators must enforce the laws already available to them. And before legislators rush to legislate, they need to understand the underlying strengths of the corporate governance system we already have' writes AICD Chair Elizabeth Proust.
• In Brief | AMP has appointed South East Asia head of investment bank Credit Suisse, Francesco De Ferrari, to be its new CEO.  Mr Ferrari will commence his new role 1 December.  The AFR reports that AMP Chair David Murray has said that Mr Ferrari's 'job, more than anything else is to redesign the business model of AMP'.  

• Top Story |  CEOs paid less well than their global peers? Melbourne University study suggests ASX 200 CEOs are paid less well than their global peers, but has cautioned this does not 'necessarily' suggest that they are 'underpaid'.  

• In Brief | The ACCR is planning to file shareholder resolutions at Qantas and Virgin, protesting the involvement of both carriers in transporting asylum seekers, subject to meeting the 100 shareholder requirement to do so.  The group has taken the step of calling on its mailing list to consider purchasing Qantas shares in order to assist in meeting the 100 shareholder requirement.

• In Brief | Fortune has released its annual list of the 100 fastest-growing companies (by revenue, profit, and stock return). On average, the companies on the list delivered a 27% return to shareholders over the past three years, outperforming the S&P 500 index (12%). Nearly a third of the 100 entrants are tech companies, and the top 10 include Facebook, Nvidia, and Amazon. 

• Update on progress towards the planned 'codification' of the Sustainability Accounting Standards Board (SASB) standards: The SASB plans to issue 'the world's first complete set of codified standards' on financially material sustainability topics later this year.
• Highest profile case of SEC Chair Jay Clayton's tenure?  Bloomberg writes that the SEC could face a backlash if Tesla CEO Elon Musk is ultimately exonerated of any wrong doing following his recent Tweet (concerning plans to take the company private).
• In Brief | High price for non-disclosure? Merrill Lynch has agreed to pay $8.9m to settle SEC allegations it failed to disclose a conflict of interest when making decisions on products managed by an (unnamed) outside firm.  According to SEC, the settlement amount included more than $4 million in disgorgement, $806,981 in prejudgment interest, a more than $4 million penalty, to be censured and to cease and desist from further violations.  Merrill Lynch did not admit or deny the findings.

• Share buy-back debate | MSCI has found no 'compelling evidence' that share buybacks have a negative impact on long-term value creation?  Responding to concerns from a number of commentators, MSCI has outlined its latest research findings.  

• Top Story | Heavy new penalties arrive for the Australian Consumer Law.
• Leaking investor education reports could have negative consequences for IPOs APRA cautions.
• APRA has released guidance on restricted words under the Banking Act 1959 (Cth)
• In Brief | APRA has released general insurance statistics for June 2018: According APRA total industry net profit after tax in the year ended 30 June 2018 was a profit of $3.8 billion (2017: $3.1 billion) which represented a return on net assets of 13.4% (2017: 10.9%).  
• In Brief | ASIC has issued a reminder to ASIC regulated entities regarding the new industry funding model.  ASIC regulated organisations may be required to submit information to ASIC on business operations before 27 September.  ASIC Commissioner Cathie Armour said the deadline was approaching and that it was important for all regulated entities to complete the process or they may incur penalties.
• In Brief | OAIC Commissioner announced: Attorney General Christian Porter has announced that Angelene Falk has been appointed commissioner of the Office of the Australian Information Commission (OAIC) for a three year term.

• United States | Legislating a social licence to operate can only be a first step if it's going to work?  Writing in response to Senator Elizabeth Warren's recent proposal to introduce a Bill to look beyond maximising shareholder returns, Harvard Professor Rebecca M Henderson argues the proposal does not go far enough.
• In Brief | The Australian reports that former ASIC Chair Greg Medcraft (now head of the OECD's Financial and Enterprise Affairs Directorate in Paris), appears to be supportive (in principle) of the inclusion of the concept of the 'social licence' to operate in the forthcoming edition of the ASX Corporate Governance Principles and Recommendations.  'The social licence is constantly evolving…Businesses need to monitor community expectations closely and make sure they don't fall too short of them.  Some still believe that things like responsible business conduct and good corporate governance do not necessarily align with long-term shareholder value' he is quoted as stating. 

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

• Top Story | Financial Services Royal Commission Round 5 superannuation wrap up: Possible open findings and general submissions. 
• Possible reforms arising from the Financial Services Royal Commission? University of Wollongong's Professor David Gallagher suggests that (among other things) stronger powers for the financial regulators may be one of the recommendations likely to come out of the Commission.  
• In Brief | The Financial Services Royal Commission has announced that its online forum for public submissions will close on 28 September after which date the Commission will shift its attention from past experiences to proposals on what should be done in response to the issues raised or conduct uncovered within the banking, superannuation and financial services industry. Those wishing to share their stories about past experiences are encouraged to make their submissions as soon as possible.  
• In Brief | Chair of Industry Super Australia, and independent director of Hostplus Peter Collins has reportedly called for a 'complete separation' between banking and superannuation funds following the recent Royal Commission superannuation hearings The Australian writes.  '(The inquiry) has the intellectual grunt and funding and forensic skill to really take significant corrective action and make recommendations to the government, which could improve a lot' he is quoted as stating.

Other Developments

• Already taking action? The government has released its response to a 2016 senate committee report into improving women's retirement savings, largely outlining actions already on foot.  The AIST has reportedly expressed criticism of the government's response.
• The government has released a New National Financial Capability Strategy to address poor levels of financial capability: ASIC modelling has found that there would be a $212 billion increase to consumer wealth and consumption if financial capability levels were lifted.
• In Brief | Asia Region Funds Passport regulations made: The Corporations Amendment (Asia Region Funds Passport) Regulations 2018 were registered on the 20 August.  The Asia Region Funds Passport (ARFP) is a multilateral agreement between Australia, Japan, Republic of Korea, New Zealand and Thailand to establish a common framework of coordinated regulatory oversight to facilitate cross border issuing of collective investment schemes.

• KPMG against breaking up the big four accounting firms and against 'naming and shaming' for poor audit quality?  Following Deloitte CEO Richard Deutsch's calls for ASIC to name firms who fail to minimum quality thresholds, The AFR writes that KPMG Chair Alison Kitchen remains opposed to the idea. 
• In Brief | The AFR reports that, to counter controversy over government contract work, the big four accounting firms have expressed unanimous support for 'radical transparency' over government contract work ie for the government publishing details of every contract online with a description.   Reportedly, the firms' view is that more transparency will help explain the value of the work they perform, clarify the type and scope of work they are doing across agencies and reduce the risk of disputes.
• In Brief | The UK Financial Reporting Council has fined and reprimanded KPMG Audit Plc £3,000,000 (discounted for settlement to £2,100,000) and Senior Statutory Auditor and Audit Engagement Partner Michael Francis Barradell of £80,000 (reduced to £46,800 after adjustment for mitigating factors and a discount for settlement), following their admission of misconduct in relation to their audits of the financial statements of Ted Baker Plc and No Ordinary Designer Label Limited for the financial years ended 26 January 2013 and 25 January 2014.  KPMG provided expert witnesses for Ted Baker in a court case, breaching independence guidelines. The watchdog added: 'In addition, there was a self-interest threat arising from the fact that the fees for the expert engagement significantly exceeded the audit fees in the relevant years.'

Climate risk

• United States | Rolling back Obama era clean power plan: The EPA is consulting on a proposed new rule establishing emission guidelines for states to use when developing plans to limit GHGs.  However, it's questionable whether the rule (if adopted) will have a significant impact either on halting the decline in coal production or on lowering power prices writes The FT.  
• In Brief | No emissions component in the National Energy Guarantee? The Turnbull government announced it will not introduce legislation to ensure Australia meets its commitments to emission reductions under the Paris Agreement for lack of support. The AFR reports that business leaders have since called on the government to reconsider on the basis that failure to do so will mean further uncertainty for business and for investors and have expressed disappointment at the change in direction.  'Theoretically it's still possible [for the states to continue with the NEG's reliability guarantee] but with potential leadership challenges, whatever happens we're going to start having mumblings, rumours of an election'.  

Digital disruption and cybersecurity

• Spending more on technology, prioritising cybersecurity but lacking in compliance oversight? The lack of IT risk strategies in mid-market companies is highlighted as a concern in a new Deloitte report into technology trends in mid market companies.  

Whistleblowing

• In Brief | The UK, and other countries without whistleblower reward schemes, have it wrong?  Whistleblowing is an effective tool in policing poor company behaviour yet remains career suicide according to FCPA blog.  Given this, 'All countries need to set up whistleblower protection and reward schemes, that not only protect the source but will ultimately see them justifiably remunerated where an investigation concludes that there has been wrongdoing, and where the organization is on the receiving end of significant sanctions'.   

Other Developments

• In Brief | Uber has reportedly settled harassment and hostile work environment claims: 56 current and former Uber Technologies Inc employees who filed sexual harassment claims will collect on average $33,928.57.  In addition, 431 other female and minority engineers and other workers covered by a 207 class action lawsuit will receive an average of just under $11,000 for alleged pay disparities.  

• ASIC has reported that two former company directors have been convicted in the NSW District Court for engaging in illegal phoenix activity and breaching their directors' duties. 

• National Scheme for Australian Charities and Not for Profits?  Final report into the effectiveness of current regulatory arrangements released. 
• Treasury has released a consultation paper setting out a proposed package of reforms for the administration and oversight of organisations with Deductible Gift Recipient (DGR) status. 
• The AFR reports that the Australian dollar has rebounded after Scott Morrison was voted in as leader of the Liberal Party, Moody's Investor Service has reportedly said assuming 'the absence of significant changes in the nature and implementation of policies' there are 'no implications for Australia's sovereign credit profile.  
• In Brief | Consequences of a 'no-deal' Brexit? The UK Government has released a series of technical notices providing guidance on preparing for a no-deal Brexit.  The FT reports that Dominic Raab, the Brexit secretary, conceded that there would be 'some extra regulatory' changes, but these would be offset by the opportunities for companies looking beyond the EU, though he is confident that a deal is in sight.  In the meantime the EU has released a number of 'preparedness' notices of its own.