Governance News 31 August 2022

45 minute read + (PDF download) 31.08.2022 Mark Standen, Siobhan Doherty, Kate Hilder

This weeks issue has a strong financial services focus and features coverage proposals for the (potential) overhaul of regulatory settings applying to financial advice (put forward in the Quality of Advice Review Proposals Paper) as well as the FRAA's first ever review of ASIC's effectiveness and capability. On the ESG front, we cover several climate-related shareholder proposals have been filed against resources companies and more…

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Increased transparency on executive pay: SEC has adopted a final Pay v Performance changes

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Origin has released its Climate Transition Plan ahead of the upcoming 'Say on Climate' vote, ACCR queries how funding continued coal exploration squares with the company's support for the Paris Agreement
Whitehaven to face shareholder 'capital protection resolution'
In Brief | BHP to face shareholder climate resolutions (filed by ACCR) at the upcoming AGM calling for the company to both: a) 'proactively advocate' for climate policy that is aligned with limiting warming to 1.5°C; and b) include a climate sensitivity analysis in its audited financial statements

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Anti-ESG backlash: Texas bans state pension funds from investing in ten financial firms considered to be unreasonably hostile to the fossil fuel sector, flags this list is likely to expand in future
Florida Governor acts to block state SBA fund managers from considering ESG
In Brief | RBA Head of Domestic Markets cautions that climate change has implications for financial system stability, including potentially harming Australian banks' mortgage portfolios

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AGM Guide: Governance Institute has released a comprehensive guide to virtual, hybrid and physical AGMs
Treasury is consulting on draft legislation proposing to clarify that regulators have the option of holding online hearings and examinations

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Top Story | First FRAA Review of ASIC released
In Brief | The US Securities and Exchange Commission has released its draft Strategic Plan for 2022-26 for comment. The draft plan has a strong technology focus including modernising the SEC's own approach with one of the central goals to: develop and 'implement a robust regulatory framework that keeps pace with evolving markets, business models, and technologies'

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Top Story | Hayne implementation: Quality of Advice Review proposals paper seeks feedback on (potentially) sweeping changes
Premature? CPA Australia and CAANZ consider the draft Bill proposing to adjust how faith based super products are treated under the annual performance test should be temporarily shelved
Cyclone reinsurance pool | APRA has released final reporting standards
DDO compliance: ASIC calls on super trustees to review their TMDs after a review highlighted scope for improvement
Treasury consults on potential options to implement promised changes to education requirements for financial advisers
APRA Deputy Chair cautions that 'risk management is never "done" and there will always be more mountains to climb', calls on boards to take the lead
Implementing ALRC Interim Report A recommendations: Consultation on draft legislation aiming to simplify and improve the navigability of existing laws
APRA releases results of second performance test