• In Brief | (Gender) diversity pays? Macquarie University Business School has announced that their own research has found that companies with a female CEO or with three or more women on their board, tend to outperform other less (gender) diverse companies

• In Brief | An end to the no-profit, no bonus approach?  The FT reports that Deutsche Bank executives will receive 50% of their bonuses (having voluntarily waived 50%) breaking, with the recent practice of waiving bonuses during unprofitable years.  Reportedly, the lender is set to report an estimated €5bn loss

• In Brief | APRA's supervisory and prudential priorities for the next 12 to 18 months released: Among APRA’s key cross-industry policy priorities for 2020 are initiatives aimed at driving improvements in GCRA, including finalising a more robust prudential standard on remuneration, and updating prudential standards on governance and risk management.  APRA's supervision priorities for 2020 include a closer assessment of institutions' capabilities to deal with cybersecurity and climate risks (among others) 
• In Brief | ASIC's latest 'red tape' report — Report 654: Overview of decisions on relief applications (April 2019 to September 2019) — outlines decisions on relief applications and highlights ASIC's efforts to reduce red-tape and achieve a practical, positive outcome for companies seeking regulatory flexibility, without harming stakeholders

• Pressure to raise ESG standards: State Street to 'take appropriate voting action' against board members at large companies (including ASX 100 companies) considered to be lagging on ESG from this year

• United States | An 'elephant in the room' or sensible measures to streamline requirements? SEC has proposed amendments to 'modernise and enhance' financial disclosures (but one Commissioner has issued a statement questioning why the proposed changes make no mention of ESG)

Financial Services Royal Commission recommendations

• Top Story | Details released: Consultation on a raft of Hayne legislation launched
• Implementing FSRC recommendations 1.6, 2.7, 2.8, 2.9 and 7.2: consultation on draft 'protecting consumers' Bill
• Implementing FSRC recommendation 1.15: Consultation on draft legislation proposing to enable ASIC to designate enforceable code provisions in approving financial sector industry codes and introduce a new framework for establishing mandatory codes of conduct for the financial services industry through regulations
• Implementing FSRC recommendation 2.1: Consultation on draft legislation targeting the issue of fee for no service conduct in the context of fees for financial advice 
• Implementing FSRC recommendation 2.2: Consultation on draft legislation proposing to impose a new requirement on financial advisers to disclose their lack of independence 
• Implementing FSRC recommendation 3.1: Consultation on draft legislation proposing to prohibit superannuation trustees from having duties other than those arising from or in the course of the performance of their duties as a trustee of a superannuation fund
• Implementing FSRC recommendations 3.2 and 3.3: Consultation on draft legislation proposing changes to advice fees for MySuper and Choice products 
• Implementing FSRC recommendations 3.4 and 4.1: Consultation on draft legislation proposing to introduce one general prohibition for the hawking of all financial products
• Implementing FSRC recommendation 4.6: Consultation on legislation proposing to limit the circumstances in which an insurer may avoid life insurance contracts 
• Implementing FSRC recommendation 4.4: Consultation on draft legislation proposing to cap commissions paid to vehicle dealers 
• Implementing FSRC 'additional commitment' in response to recommendation 4.2: Consultation on draft legislation proposing to restrict the use of the term 'insurance' and 'insurer'
• Implementing FSRC recommendation 4.3: Consultation on draft legislation proposing to implement a deferred sales model for add-on insurance
• Implementing FSRC recommendation 4.5: Consultation on draft legislation proposing to introduce a new duty on insureds to take reasonable care not to make a misrepresentation to the insurer on entering into, varying, extending or renewing a consumer insurance
• Implementing FSRC recommendation 6.14: Consultation on draft legislation proposing to establish an independent assessment authority (Financial Regulator Assessment Authority) to review the effectiveness of APRA and ASIC
• Implementing FSRC recommendations 3.8, 6.3. 6.4 and 6.5: Adjusting the roles of the financial regulators 
• Implementing an 'additional commitment' in response to FSRC recommendation 7.2: Consultation on draft legislation proposing give ASIC a directions power
• Banks have made good progress, and the sector remains committed to continuing to improve says ABA: The Australian Banking Association (ABA) has issued an update one year on from the Financial Services Royal Commission, recapping the changes implemented to date in the banking sector
• In Brief | The Consumer Action Law Centre has cautioned against watering down Commissioner Hayne's recommendations one year on from the release of the Final Report: 'Commissioner Hayne found that greed and a focus on sales and profits drove significant misconduct. This will continue unless the Government and regulators take a firm stance against misconduct and regulatory loopholes.  These reforms will only work if they honour the spirit, and not just the letter, of Hayne’s recommendations. At the end of this bumper crop of legislative reform, the Government must ensure there are no gaps and loopholes' the statement reads
• In Brief | The AFR reports that ASIC expects to launch another 20 cases related to the Hayne Commission in the first half of 2020.  Deputy Chair Daniel Crennan is quoted as saying that he expects the 'it will be busier the next six months than the last six months'.   Mr Crennan also reportedly confirmed that ASIC 'will be in a position to explain why we don't pursue cases' and that it expected questions of that nature during Senate estimates hearings
• In Brief | Legal challenge on banning grandfathered commissions will not go forward? The Association of Independently Owned Financial Advisers has reportedly failed to raise the required capital to fund a legal challenge to the banning of commissions.  The AFR quotes AIOFP Executive Director Peter Johnston as saying that industry sentiment has shifted post-Hayne, 'after initially strongly protesting against banning grandfathered revenue three years ago, most have accepted they need to move forward…History will show this will be the best outcome for all concerned' 

Other Developments

• APRA member Geoff Summerhayes has cautioned the PHI sector that the 'industry's current trajectory is unsustainable' 
• Stamping fee exemption inquiry: Treasury guidance for submissions 
• In Brief | The AFR reports that ASIC expects to launch another 20 cases related to the Hayne Commission in the first half of 2020.  Deputy Chair Daniel Crennan is quoted as saying that he expects the 'it will be busier the next six months than the last six months'.   Mr Crennan also reportedly confirmed that ASIC 'will be in a position to explain why we don't pursue cases' and that the regulator expects questions of that nature during Senate estimates hearings
• In Brief | 'World first' (voluntary) Code of Practice: AFIA has released a draft buy-now-pay-later (BNPL) Code of Practice for consultation that proposes to set minimum standards for buy now pay later companies.  The due date for submissions 11 March.  AFIA says the planned implementation date for the new Code (once finalised) is 1 July 2020, though this may be impacted by the consultation process

• United Kingdom | The UK government is reportedly considering giving the Financial Reporting Council powers to prevent accounting firms from providing non-audit services to larger private companies (though which companies would fall into this category is as yet unclear)