Governance News 5 July 2023

45 minute read + (PDF download) 05.07.2023 Mark Standen, Siobhan Doherty, Kate Hilder

This week's issue has a strong risk focus. APRA has called on all regulated entities to review the six 'common control gaps' in CPS 234 compliance so far identified as part of its 'independent tripartite cyber assessment'. Separately, government and regulatory focus on combatting online scam activity continues with the National Scam Centre's first new expert 'hit squad' set to focus on tackling online investment scams. On the financial services front, ASIC's focus on DDO compliance and enforcement and pricing misconduct continues – we cover the latest developments. On the ESG front, following the release of the ISSB's initial two sustainability standards last week, the IAASB is set to consult on overarching standard for assurance on sustainability reporting in August 2023, the NA 100 initiative has flagged the eight sectors it intends to target, two reports offer early insights into the trends to have emerged over the US meeting season and more….

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88 cents in the dollar: An initial look at workplace gender equality indicators in the public sector highlights scope for improvement

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21% of J-Power shareholders back shareholder GHG targets proposal

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Early insights from the US meeting season: Report finds 'Say on pay' failure rate is down on last year, remains high (though this is trending slightly down)
Report confirms level the number of shareholder ESG proposals filed is up on last year (but the level of support is down)

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CGI Australia event | Climate Governance Forum, 11 August 2023
IAASB to consult on overarching standard for assurance on sustainability reporting in August 2023
Pushing for corporate action on nature loss: NA100 outlines investor expectations, announces intention to target eight sectors
Senate Greenwashing Inquiry | The AICD considers there is 'no legislative gap' and therefore no justification for legislating a new greenwashing offence in Australia, does support additional (and more detailed) regulatory guidance
Government announces environmental offsets crackdown, developers urged to 'check their house is in order'
US Treasury report assessing climate-related risk in the insurance context flags gaps in insurance supervision, makes 20 policy recommendations
Global report ranks Australia second only to the US for climate litigation
Encouraging SMEs to electrify: Consultation on draft Bill, grants to SMEs
In Brief | Reuters reports that BlackRock CEO Larry Fink will no longer use the term 'ESG' because he considers it has become too politicised. Reportedlt, Mr Fink has said that the shift in terminology does not signal a shift in BlackRock's stance on environmental, social and governance issues
In Brief | The Bank of Thailand, together with the Securities and Exchange Commission have announced the release of what is planned to be the initial phase of sustainable finance taxonomy - Thailand Taxonomy Phase 1 – a (voluntary) central standard for categorising 'green' projects. Phase 1 includes energy (supply) and transport sectors. Phase 2 is planned to extend to cover agriculture, construction, real estate, and waste management sectors
In Brief | The Monetary Authority of Singapore is consulting on a proposed Code of Conduct for ESG rating and data product providers. The Code would include minimum disclosure requirements as well as expectations around management of conflicts of interest. It's proposed that adherence to the Code requirements would be on a comply or explain basis
In Brief | Coal phase out: Singapore is consulting on proposed criteria for financing the early phase out of coal-powered power plants under the Singapore-Asia Taxonomy

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Diluting investor protections: Investors raise concerns about proposed changes to UK Listing Regime

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Enforcing adherence to pricing promises: Insurer fined $40m over pricing failures, ASIC has cautioned it expects to take further court action
DDO enforcement: ASIC takes aim at pet insurance, 'considering further stop orders for other insurance products'
DDO review | ASIC has called on banks to prioritise migrating eligible Indigenous customers into low fee accounts following review
Debanking: Government backs voluntary monitoring scheme, implementation of 'transparency and fairness measures' recommended by CFR
A 'clear message' to industry: APRA hands down $247,500 fine for failure to report data by the required deadline
Time to tighten bank regulation and supervision says US Federal Reserve Chair
In Brief | The Federal Court has imposed combined penalties of $13.5 million on three insurers for engaging in unconscionable conduct when selling life, funeral and accidental injury insurance over the phone to vulnerable customers. The court also imposed a penalty of $100,000 and a five year ban on the former managing and sole director of one insurer for breach of their directors' duties
In Brief | The Life Insurance Code of Conduct which includes a range of additional consumer protections and gives the Life Code Compliance Committee increased powers to impose sanctions and financial penalties on Code subscribers took effect on 1 July 2023

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Top Story | MinterEllison's submission on proposed reforms to AML/CTF regime
Top Story | First anti-scam centre 'hit squad' to target online investment scams
CPS 234 compliance | APRA calls on all regulated entities to address six 'common control gaps' following recent cyber attacks
NSW parliamentary inquiry into AI launched
In Brief | Australian Communications and Media Authority joins other regulators in prioritising scam disruption/prevention: Enforcing e-marketing unsubscribe rules and combatting SMS scams listed among ACMA's top priorities in 2023-24

Other News Navigation Show below Hide below

Top Story | A 'thin new world' part 2 – proposed changes to Australia's thin capitalisation provisions

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Siobhan Doherty

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- +61 2 9921 4339
- +61 413 187 544

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