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Governance News 23 April 2018

3 mins 30 sec  23.04.2018
Governance News provides weekly summaries of key regulatory and governance developments in Australia and overseas.

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We provide weekly summaries of key regulatory and governance developments in Australia and overseas.

Our most recent top stories

Diversity Navigation Show below Hide below

Falling off the glass cliff? Why appointing women to board positions is not enough to accomplish gender parity beyond the short term.

United States | Numbers are often deceptive? Equilar explains why we shouldn't take every statistic on gender parity at face value.

Remuneration Navigation Show below Hide below

On track for a 'tumultuous AGM' at Unilever? ISS has reportedly advised against proposed changes to the pay policy and Glass Lewis has supported it.

Markets and exchanges Navigation Show below Hide below

In Brief | Goldman Sachs' global head of market structure and head of metals and mining, David Schwimmer has reportedly been appointed the new CEO of the London Stock Exchange replacing Xavier Rolet who ended his eight year tenure in November 2017. Mr Schwimmer will reportedly commence the role on 1 August.

Regulators Navigation Show below Hide below

Top Story | The UK government have launched a 'root and branch review' of the role and powers of the UK audit regulator, the Financial Reporting Council: The Kingman review of the FRC will review the FRC's governance, impact and powers.

United Kingdom | More engagement with shareholders: The FRC will convene an investor advisory group to act as a formal mechanism for the regulator to regularly engage with stakeholders on risks and areas of concern from a stakeholder perspective.

In Brief |The Treasurer announced the appointment of Dr Gwenneth (Wendy) Craik AM as a part time member, to the Reserve Bank Board, for a five-year period from 7 May 2018. Dr Craik's commencement on the Reserve Bank Board will coincide with the conclusion of Ms Kathryn Fagg's term on 6 May 2018.

In Brief | Australian Treasurer Scott Morrison and New Zealand Commerce and Consumer Affairs Minister Kris Faafoi have welcomed the cross-appointment of Australian Competition and Consumer Commission (ACCC) Commissioner Roger Featherston to the New Zealand Commerce Commission.

In Brief | Treasurer Scott Morrison has announced that Mr Mick Keogh OAM will serve as a Deputy Chair of the Australian Competition and Consumer Commission (ACCC) for a period of five years and the reappointments of Ms Sarah Court and Ms Cristina Cifuentes as Commissioners, each for a period of five years.

Corporate social responsibility and sustainability Navigation Show below Hide below

AICD Director Sentiment Index H1 2018: Sustainability and long-term growth prospects are the key concerns for AICD members

Financial Services Navigation Show below Hide below

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

Top Story | Financial Services Royal Commission second round of hearings into financial advice: overview of issues arising in relation to fee for no service conduct

ASIC Deputy Chair Peter Kell comments on fees-for-no-service conduct, conflicted remuneration and inappropriate advice to establish self-managed superannuation funds (SMSFs).

Financial Services Royal Commission second round of hearings into financial advice: overview of issues arising in relation to the provision of inappropriate financial advice.

Opening Statement | Counsel Assisting's opening address to the Commission

Too big to manage conflicts effectively? Reportedly, former Australian Competition and Consumer Commission chairman Allan Fels has said that forcing banks to sell off their financial planning businesses should be considered.

More time? The Government is reportedly open to extending the twelve month time frame for the Commission to complete its investigations.

Other Developments

Government response to ASIC Enforcement Review Recommendations released: 'the most significant increases to the maximum civil penalties, in some instances, in more than twenty years' according to Minister for Revenue and Financial Services Kelly O'Dwyer.

Draft regulations to improve ASIC's powers to enforce Client Money Reporting Rules 2017 released for consultation.

Final McPhee report released; Industry has adopted recommendation to continue to report on progress.
Increasing competition? Exposure Draft legislation proposes to relax ownership restrictions of banks and insurers: Financial Sector (Shareholdings) Amendment (Relaxing Ownership Restrictions) Bill 2018.

Open Banking | Is the banking industry employing delaying tactics on open banking?

Insurance in Superannuation Code of Practice | Potentially in conflict with competition law?

In Brief | The Australian Securities and Investments Commission (ASIC) has confirmed the completion of a compliance review and remediation program, and removal of additional licence conditions, for Total Financial Solutions Australia Limited (TFSA). The remediation program resulted in $2,549,291 being paid in compensation to clients.

Risk management Navigation Show below Hide below

Sudden retirement? The CEO of WPP PLC, the 'longest serving FTSE 100 CEO' has reportedly stepped down after 33 years in the role following the completion of an investigation into alleged personal misconduct.

Restructuring and insolvency Navigation Show below Hide below

Consultation on Ipso Facto Insolvency regulations

Full coverage of this weeks content is now available


Past issues are available

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