Governance News 24 November 2021

45 minute read (PDF Download) 24.11.2021 Mark Standen, Siobhan Doherty, Kate Hilder

This issue includes coverage of several significant financial services and regulatory developments including the release of updated ASIC guidance on its approach to enforcement and use of EUs. The issue also includes coverage of APRA's call for boards to be more proactive in their oversight of cyber issues. Progress updates on the government's plans to 'modernise' meeting and execution requirements and business communications more broadly is also included and more…

Boards and Directors Navigation Show below Hide below

Top Story | APRA calls on boards to be proactive in their oversight of cyber-risk

Diversity Navigation Show below Hide below

Diversity is on the agenda of most US boards, but less than half of companies are setting DEI targets
In Brief | According to Bloomberg the percentage of ASX200 directorships held by women increased to 34.1% in October 2021 from 34% in the previous month. Bloomberg attributes this increase to the departure of male directors
In Brief | Pandemic pause on diversity at an end? A global report analysing the background/experience of newly appointed CEOs at the1095 largest listed public companies across 24 markets has identified that the share of women appointed to CEO roles jumped to 13% in H1 2021 (up from just 6% in H2 2020). Likewise the proportion of CEOs with C-suite experience beyond CFO and COO roles (ie with experience in roles such as Chief Risk Officer, Chief Technology Officer, Chief Strategy Officer) increased

Meetings and Proxy Advisers Navigation Show below Hide below

Committee paves the way for the passage of the Corporations Amendment (Meetings and Documents) Bill 2021
SEC mandates use of universal proxy cards
SEC consults on the proposed repeal of 2020 proxy adviser rule-changes

Markets and Exchanges Navigation Show below Hide below

Investigation into ASX November 2020 outage: No breach of ASX licence conditions found, ASIC imposes additional licence conditions on ASX

Regulators Navigation Show below Hide below

Top Story | ASIC clarifies its stance on EUs
In Brief | SEC enforcement update: SEC reports an 3% decrease overall in enforcement actions filed in fiscal year 2020, but a 7% jump in the number of new enforcement actions including against emerging threats in the crypto and SPAC spaces. SEC Chair Gary Gensler said that the results show that SEC is 'the cop on the beat for America’s securities laws…As these results show, we go after misconduct wherever we find it in the financial system, holding individuals and companies accountable, without fear or favour, across the $100-plus trillion capital markets we oversee'

Financial Services Navigation Show below Hide below

Responsible lending: New regulations made to further extend the 'small business exemption'
Hayne implementation: Senator Hume rejects criticism that the proposed CSLR is too narrow in its scope
ASIC has commenced proceedings against the largest registered debt administrator in Australia over alleged use of threats/coercion to induce payment
Regional Banking Taskforce commences consultation on the impacts of regional branch closures
ASIC Chair Joe Longo's speech to the AFR Super and Wealth Summit focused on: enforcement, superannuation and the challenges of regulating cryptoassets
An opportunity for industry: APRA calls on the superannuation industry to step up its focus on post-retirement planning

Accounting and Audit Navigation Show below Hide below

In Brief | The FRC's latest annual audit assessment flags 'deficiencies relating to lack of professional scepticism by auditors, including failures to sufficiently challenge management’s assumptions, as well as evidence of the poor application of professional judgement' as ongoing issues. The FRC considers that 'quality across firms was more mixed' than last year, with 'evidence that some firms had successfully implemented improvement measures' since the last review. Of the 147 audits reviewed, 33% required improvement or significant improvement (down from 38% in 2019/20).

Risk Management Navigation Show below Hide below

In Brief | The Security Legislation Amendment (Critical Infrastructure) Bill 2021 passed both Houses on 22 November 2021. The Bill will introduce new mandatory cyber incident reporting requirements for 'owners and operators of critical infrastructure' as well as new powers for the government to step in to 'assist' in the event of a 'significant' cyber attack
In Brief | Expansion of the CDR: The government has released Treasury’s final sectoral assessment report which recommends telecommunications be the third sector designated for the Consumer Data Right (CDR). The government is consulting on a draft designation instrument setting out the scope of datasets and data holders proposed to be designated. The due date for submissions is 13 December 2021
In Brief | NSW Modern Slavery Act (finally) set to commence: The NSW Modern Slavery Amendment Bill 2021 (NSW) passed both Houses on 19 November 2021

Corporate Misconduct and Liability Navigation Show below Hide below

How has corporate law been enforced in Australia? Melbourne University Study sheds light on enforcement activity in the decade leading up to the Hayne Commission

Restructuring and Insolvency Navigation Show below Hide below

ALRC supportive of a comprehensive review of Australia's insolvency laws

Other News Navigation Show below Hide below

Consultation on further proposals to modernise Treasury portfolio laws
NSW Bill permanently enabling remote witnessing of documents has passed both Houses

Contact

Mark Standen

Consultant, Sydney
- +61 2 9921 4902
- +61 412 104 902
Siobhan Doherty

Partner, Sydney
- +61 2 9921 4339
- +61 413 187 544

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