Governance News 24 August 2022

40 minute read + (PDF download) 24.08.2022 Mark Standen, Siobhan Doherty, Kate Hilder

This week's issue features coverage of ASIC's latest corporate plan which outlines the regulator's priorities over the next four years, as well as a number of shorter-term cross industry and sector-specific projects. We also cover a number of significant financial services, regulatory and ESG-related developments and more…

Remuneration Navigation Show below Hide below

End LTIPs, mandate worker representatives on RemCos and increase pay transparency: The UK High Pay Centre has called for action to address the widening pay gap between CEOs and workers
Most S&P companies now include some form of ESG metric in their incentive plans, with HCM related metrics the most common category

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NBIM says effective human capital management ie critical to success, outlines minimum expectations for companies

ESG Navigation Show below Hide below

Australia's climate Bills | Science and Technology Australia suggests the Climate Bills should include an additional commitment to 'name and fame' transition leaders
The government is consulting on proposals that could see Australia's largest GHG emitters cut emissions by up to 6% per year
UK financial regulator is recruiting for a new ESG advisory group
The ICA has welcomed government's support of flood inquiry findings, reiterated calls for increased investment in resilience measures
In Brief | Actuaries Institute analysis has found that climate change is already having a disproportionate impact on the affordability of insurance for vulnerable households. The Actuaries Institute has put forward several policy recommendations to address the issue including (among others) implementing 'structural solutions to improve infrastructure resilience', better land use and planning and changes to building codes. The Australian Council of Social Service has welcomed the report and called for 'national review' of insurance affordability 'prioritising people experiencing financial disadvantage'
In Brief | Unlocking investment in the hydrogen industry: The IGCC has released a report outlining the barriers, risks and opportunities for investors to 'accelerate' the Australian hydrogen industry. A key message is that green hydrogen (which is produced with renewable energy) 'appears more economically viable and avoids serious investment risks associated with blue hydrogen'

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BlackRock has urged global coordination on the development of climate disclosure obligations

Regulators Navigation Show below Hide below

Top Story | Consumer protection is the key theme in ASIC's latest corporate plan
ASIC has provided an update on three projects aimed at improving regulatory efficiency
Expert panels: RBA to strengthen its 'existing dialogue with the economics profession'

Financial Services Navigation Show below Hide below

Government flags plans to consult on a proposed framework for the regulation of cryptoassets
The Board of Taxation has released a 'consultation guide' for its (planned) review of the tax treatment of cryptoassets
Consultation on proposed extension of the CDR to non-bank lenders
CDR: Treasury is consulting on a proposed 'minor and technical amendment' to the definition of 'product' in the Open Banking principal designation instrument
Hayne Commission case study: ASIC says 'thousands' of customers sold Freedom insurance policies may be eligible for compensation
FPA calls for 'urgent and immediate continuation of ASIC industry levy freeze'
Treasurer calls for discussion of the role of superannuation funds in funding the energy transition, affordable housing and aged care
Encouraging investment in our region: Assistant Treasurer and large investors to visit Indonesia and Singapore
Insurer to pay up to $220 million over 'pricing promises'
In Brief | Compensation for financial advice related misconduct tops $3.6 billion: ASIC says that as at 30 June 2022, six of Australia's largest banking and financial services institutions had paid/offered a total of $3.6 billion in compensation to customers who suffered loss/detriment as a result of fee for no service conduct or non-compliant advice. Of this total, $438m was paid/offered by the institutions in the first six months of this year (between 1 January to 30 June 2022)