• Phase two of draft legislation to modernise Business registers (and introduce a legal framework for the implementation of director identification numbers) has been released for consultation.  

• CEO turnover in the ASX 200 has hit 20% year on year according to new research published by recruiter Robert Half. 
• Former credit union CEO charged: ASIC has announced that a former CEO has been charged with breaching his s184(1) duty to act in good faith after (allegedly) failing to provide information to the board relevant to its investigation into voting irregularities following director elections.  

• Time to remove the financial disincentives for professional women to return to full time work? A KPMG report has found that the financial cost for some professional working mothers to return to full time work can sometimes outstrip the financial benefit.  
• BHP has reportedly confirmed it is on track to achieve 50% female workforce by 2025 due to implementing measures focused on both hiring and retaining female employees.

• Another resolution to split the CEO/Chair roles at Facebook: State treasurers in four US states will reportedly support Trillium Asset Management's shareholder resolution to split the Chair and CEO roles at Facebook, which if successful, would effectively remove Mark Zuckerberg (current Chair and CEO) as Chair of the company.
• Premier Investments' campaign at Myer: There has been media speculation of a possible board spill and/or second strike, after Premier Investments (Solomon Lew) released another letter criticising the Myer board. 

• Cbus has announced that is benchmarking its asset managers to determine how well they factor climate change into their investment decisions. 
• In Brief | ACSI has announced that Cbus has signed on to the Stewardship Code.

ESG resolutions

• Top Story | 'Largest vote for any shareholder proposal in Australian corporate history': One of ACCR's four shareholder resolutions at Origin Energy Ltd received 46% proxy support ahead of the meeting. 
• Concessions on ESG resolutions: The ACCR has announced the results of its successful private engagement with Westpac and NAB.
• Market Forces has called for support of its climate resolutions at Whitehaven Coal and challenged the company's continued commitment to coal ahead of the 25 October AGM. 
• In Brief | ACCR proposal at Qantas: The Australasian Centre for Corporate Responsibility (ACCR) and the Refugee Advice and Casework Service (RACS) have co-filed a shareholder resolution calling on Qantas to 'stop deportations and removals to danger' and to commission a human rights review to align Qantas’ deportation practices with the UN Guiding Principles on Business and Human Rights. Qantas currently undertakes deportations of refugees and asylum seekers as a service provider to the Australian Department of Home Affairs.  The Qantas AGM will be held on 26 October. 

Executive remuneration

• Top Story | A sign of shifting shareholder expectations on executive remuneration? Telstra and Tabcorp shareholders have delivered first 'strikes' at recent AGMs sparking media speculation that this is the start of an AGM season of shareholder revolts.

Other Developments

• In Brief | In the lead up to the planned SEC roundtable discussion on possible changes to proxy regulation, Glass Lewis/Value Edge Advisers have raised concerns about (alleged) 'anti-shareholder propaganda' from conservative business groups calling for change of current shareholder rules based on what Value Edge Advisers/Glass Lewis regard as spurious arguments. 

• United Kingdom | FRC Financial Reporting Lab review of risk reporting practices has found limited improvement over the past year. 
• In Brief | A US court has approved the SEC settlement with Tesla and Tesla CEO Elon Musk: The AFR reports that a US judge has approved Tesla and Tesla CEO Elon Musk's $US40 million settlement with the US Securities and Exchange Commission, resolving allegations that Mr Musk misled the public over his Twitter announcements of plans to take the company private.  According to The AFR the result was expected, even in the face of Mr Musk's recent 'insulting' tweets about the 'Short seller Enrichment Commission' a few days after reaching the deal with SEC.

The Australian Securities and Investments Commission (ASIC)

• ASIC Chair James Shipton has reiterated to the Joint Parliamentary Committee on Corporations and Financial Services that the regulator is committed to enhancing its approach to enforcement but has questioned whether it is 'right sized' to meet expectations.
• ASIC has announced a review of 'school banking' programs in primary schools
• In Brief | The Australian Securities and Investments Commission (ASIC) has released two updated regulatory guides (Regulatory Guide 261 Crowd-sourced funding: Guide for companies, and Regulatory Guide 262 Crowd-sourced funding: Guide for intermediaries) to coincide with the extension of the crowd-sourced funding framework to eligible proprietary companies (which started on 19 October).  ASIC writes that the guides include guidance for proprietary companies and updated requirements for public companies and follows previous consultation. 

Australian Prudential Regulation Authority (APRA)

• BEAR update | The Australian Prudential Regulation Authority (APRA) has released an information paper outlining its approach to implementing BEAR to assist medium and other small ADIs with their preparations for commencement on 1 July 2019. 

Australian Competition and Consumer Commission (ACCC)

• The House Economics Committee has released its review of the Australian Competition and Consumer Commission Annual Report 2017.  Among other things, the report welcomes the more 'proactive' approach ACCC has taken to monitoring competition in the financial sector and states that the ACCC appears 'well placed' for its 'enhanced competition role'. 

Overseas developments

• United Kingdom | The Financial Reporting Council (FRC) has released its annual report. 
• In Brief | Update on implementing the extension of the SM&CR to insurers: The PRA has published Policy Statement 26/18: 'Strengthening accountability: Implementing the extension of the SM&CR to insurers' which provides a rules instrument with amendments to the final rules for the implementation of the extension of the Senior Managers Certification Regime to insurers.  The final rules will apply with effect from Monday 10 December 2018.

• Inquiry into 'payday' lending: The Senate has voted to establish an inquiry, to be undertaken by the Senate Economics References Committee, into debt management firms and the impact of payday loans, rent to buy leases and 'buy now, pay later' credit.
• In Brief | Treasurer Josh Frydenberg has announced that he intends to introduce new legislation to strengthen penalties for white collar crime.  Based on recommendations from the ASIC Enforcement Review Taskforce, the Bill 'significantly increases maximum penalties for both criminal and civil wrongdoing, while also expanding the range of contraventions subject to civil penalties'.  The Treasurer adds that as the changes include amendments to the Corporations Act, its introduction requires the agreement of at least three states or two states and one territory and that the government is seeking the necessary agreement.
• In Brief | According to a new study, superfund fees have risen 10% on last year to $32bn with the average superannuation fund member paying 1.23% of their account balance in fees, (up from 1.17% in 2017).  According to the study, almost two-thirds of the fees charged by superannuation funds go to investment management with the remaining one third going to fund administration.
• In Brief | The Australian and New Zealand governments are consulting on proposed new e-invoicing governance arrangements to help 'establish an independent, fair and equitable governance structure for the day to day operation of e-invoicing' in both countries including the development of the Trans-Tasman e-invoicing interoperability framework.  This consultation is the latest step in the Australian and New Zealand Governments' commitment to progress e-Invoicing as part of the Single Economic Market agenda, which aims to create a seamless Trans-Tasman business environment.  Consultation closes 16 November 2018.
• In Brief | Setting ourselves up to fail on Open Banking? Failing to follow best practice (the UK's example) in the implementation of open banking may incur risk for the project from the beginning given its complexity The AFR argues. 

Climate Risk

• A MSCI report has found that approximately 40% of Australia's largest listed companies fall short of carbon reduction requirements under the current target set by the Australian Government under its Nationally Determined Contribution (NDC).  
• Further indications that regulatory focus on climate risk management and reporting is building? UK regulators the PRA and FCA have called on the financial firms they regulate to improve their management of climate risk.
• First G7 country to move on setting a net-zero emissions target? In the wake of the IPCC report, the UK government has sought guidance from the Committee on Climate Change (CCC) asking for advice on a roadmap to a net zero economy, including how emissions might be reduced and the expected costs and benefits of doing so.
• Dow Jones Sustainability Indices accused of 'greenwashing'?  Friends of the Earth has criticised the DJSI for including a company linked to a 'problematic' palm oil group for a second year. 
• A watershed moment for the entire fossil fuel industry?  The Norwegian parliament will determine whether Norway's $1tn sovereign wealth fund should be allowed to proceed with a controversial plan to divest $40bn in oil and gas stocks this spring. 

#MeToo Risk

• In Brief | Acting to address the risk of sexual misconduct in NGOs: The Australian Council for International Development (ACFID) has announced that there will be a vote on the inclusion of a 'clear cut, high level commitment for NGOs to advance the safeguarding of people vulnerable to sexual exploitation and abuse' in the ACFID Code of Conduct at the upcoming AGM.  If adopted at the AGM, 'the commitment will lead to strong and clearer accountability to stakeholders – the public, partners and local communities – as well as a clear process for addressing the prevention of sexual exploitation and abuse and an articulation of expected standards of behaviour of ACFID members’ staff' and will be binding on the ACFID's 122 members. 

Cybersecurity

• A global report from Gemalto has found that 4.5 billion records were stolen, lost or compromised worldwide in the first half of 2018, a 133% increase over H1 2017. 
• SEC has released a report reminding public companies of the need to consider cyber threats when implementing internal accounting controls after an investigation of nine public companies revealed that lack of internal controls led to the loss of nearly $100m (most of which was unrecoverable).
• Update on Facebook security breach: fewer accounts impacted than originally reported, but additional personal data may have been exposed. 
• In Brief | More concerned with producing reports than on acting on them?  The Australian has questioned the effectiveness of the Office of the Australian Information Commission (OAIC) in holding corporations and government to account for data breaches and for safeguarding privacy information given the volume of breaches being reported and the lack of fines/prosecutions.  Whether OAIC lacks resources to fully investigate reported breaches or is reluctant to prosecute offending firms, The Australian argues, its effectiveness is questionable given its record.

Other Developments

• Distancing themselves from possible reputational risk associated with attending the Saudi Investment Forum? According to media reports, several high profile speakers, sponsors and media partners have withdrawn from the 'Davos in the Desert' event, following the disappearance of journalist Jamal Khashoggi.  

• In Brief | The Australian Securities and Investments Commission (ASIC) has issued a statement confirming that it has exercised its powers to wind up 17 abandoned companies and appoint liquidators (thereby assisting 32 employees gain access to the Fair Entitlements Guarantee scheme (FEG)) in the 12-month period ending 30 September 2018.  The appointment of liquidators also facilitates a full and proper investigation into why the companies failed, and allows recovery of any voidable or unreasonable director-related transactions that can potentially be returned to creditors.  ASIC first exercised its powers in 2013 and to date, has wound up 110 companies.