Governance News 22 July 2020

60 minute read (PDF download) 21.07.2020 Mark Standen, Siobhan Doherty, Kate Hilder

COVID-19 Special Edition

This issue of Governance News, includes coverage of: a) key COVID-19 related developments; b) other financial services and regulatory developments including coverage of ASIC's recent appearance before the parliamentary joint committee; c) disclosure and reporting related developments including coverage of joint AICD, CAAZ and CPA guidance on approaching COVID-19 reporting; and d) coverage of ESG related developments including the release of BlackRock's latest stewardship report.

COVID-19 Key Developments Navigation Show below Hide below

COVID-19: JobKeeper and JobSeeker changes announced
COVID-19: Expanded SME loan guarantee scheme announced
COVID-19: ASIC data shows 25% fewer companies entered voluntary administration in H1 2020 as compared with the same period in 2019
COVID-19: The AICD has reiterated its calls for the extension of director relief measures
COVID-19: Next sitting of parliament deferred until 24 August
In Brief | ACTU has called on the government to invest in a 'jobs-led' COVID-19 recovery and has put forward a five point plan for where the investment should occur. 'Whether it is free and universal childcare, the expansion of public infrastructure investment with locally made materials, free TAFE courses focussed on rebuilding our skills and training sector, support to revitalise our travel and hospitality sectors and regional communities or building a sustainable manufacturing capacity this plan delivers jobs, community infrastructure and a future for Australia' ACTU President Michele O’Neil states

Boards and Directors Navigation Show below Hide below

Clive Palmer has been charged with misuse of his position as a director and fraud following an ASIC investigation
In Brief | French financial regulator the ACPR has called on insurers to separate the Chair from CEO roles in the interests of good governance
In Brief | Updated practical guidance for aged care boards: The Governance Institute has relaunched its guide to governance in the aged care sector

Diversity and Inclusion Navigation Show below Hide below

Will there be lasting change in the way companies treat 'hourly workers' post COVID-19?

Institutional Shareholders and Stewardship Navigation Show below Hide below

Top Story | Effective stewardship means focusing on sustainability: BlackRock stewardship report released
Investors urge US regulators to act on the 'systemic threat' that climate risk poses to financial markets

Disclosure and Reporting Navigation Show below Hide below

How to approach reporting on the impacts of COVID-19: The AICD, CAAZ and CPA have released joint guidance
Cutting through the complexity: SASB and GRI have announced that they will work together to produce materials clarifying how their different standards can be used concurrently
Canada | Mandating reporting under the TCFD or SASB recommendations for TSX listed issuers? The Capital Markets Modernization Taskforce is consulting on over 70 proposals aimed at 'modernising Ontario's capital markets'
In Brief | The FRC's latest thematic review of company reporting has identified that though companies overall provided 'sufficient information to enable a user to understand the impact Covid-19 had on their performance, position and future prospects, some - particularly interim reports - would have benefited from more extensive disclosure'. The report includes guidance to improve the quality of disclosure going forward

Markets and Exchanges Navigation Show below Hide below

No change? The Securities and Futures Commission of Hong Kong has issued a statement clarifying that it does not anticipate that the enactment of the National Security Law will impact 'Hong Kong's role as the principle conduit for global savings to access Mainland China's capital markets'

Regulators Navigation Show below Hide below

Questions to ASIC: The Parliamentary Joint Committee on Corporations and Financial Services questioned ASIC on a range of issues including the pace of bank remediation programs; superannuation and the Wagyu and Shiraz decision

Financial Services Navigation Show below Hide below

Westpac has released its Culture, Governance and Accountability Reassessment
COVID-19: So far funds have paid out $25.3bn under the government's early release of superannuation scheme
In Brief | $1.26 million (and probably more) lost to scams: The ACCC has issued a warning about an uptick in early release of superannuation scams. ACCC Deputy Chair Delia Rickard cautioned said that 'scammers are increasingly taking advantage of the financial difficulties and uncertainty generated from the COVID-19 pandemic to trick unsuspecting Australians. We are seeing two main types of scams impersonating government departments; fake government threats and phishing scams. Both of these scams can be quite convincing and can lead to significant financial losses or even identity theft'
In Brief | Business interruption insurance test case – The Financial Conduct Authority is bringing a test case in the High Court 'to resolve some key contractual uncertainties and "causation" issues to provide clarity for policyholders and insurers'. The pandemic has seen a surge in the number of customers making claims under their policies and in the number of disputes. The action is being fast tracked in light of the uncertainty facing customers
In Brief | The CBA has expanded its support for members of the community impacted by financial abuse because of domestic or family violence. The initiative includes partnering with Good Shepherd to provide free community access to 'specialised financial coaching and solutions' and the roll out of 'trauma informed support' to CBA customers experiencing abuse through an inhouse Community Wellbeing team
In Brief | Central Bank Digital Currency on the policy agenda? Reportedly the Japanese government's annual policy roadmap has flagged exploration by the BOJ into the feasibility of issuing central bank digital currencies for the first time. The article speculates that the shift to cashless payments because of COVID-29 coupled with Facebook's planned launch of Libra crypto currency has prompted move