• Canada | Modest improvements since the introduction of mandatory reporting on gender representation: The Canadian Securities Administrators (CSA) has released its fourth review of mandatory disclosure of gender representation on Canadian boards and in executive officer positions.  
• Italy | The revised Italian Corporate Governance Code for listed companies aims to 'safeguard' the impact of a law (due to sunset) intended to ensure gender balance on listed company boards.
• In Brief | Delayed release of diversity information? The FT reports that the largest wealth fund in the world (Norway’s sovereign wealth fund) which is estimated to own an average of 1.4% of every listed company globally has not published its views on the issue of gender representation on boards and diversity generally, despite releasing its views on other governance issues.  Reportedly, this is due to lack of consensus, and possibly a level of concern about the appropriateness of exporting ‘Nordic’ values. 

• United Kingdom | Revised guidance on meeting 'social licence to operate' requirements: GC100 guidance on compliance with s172 duty to promote the success of the company released. 

• European Union | New European Commission figures show that the gender pay gap in the EU persists despite increased focus on the issue.  The Commission has called for the urgent passage of proposed changes to flexible working arrangements (including paid paternity leave) to help drive progress.
• United States | Executive remuneration less of a concern for shareholders than previously? A review of trends in US executive compensation practices 2018 suggests that the drop in the number of shareholder-sponsored proposals on executive compensation may indicate shareholders are more satisfied with company practices and the increased engagement with directors.

• On the back of the recent SEC settlement, activist investors at Tesla are pushing for governance reforms at the company including the permanent separation of the CEO and Chair roles and 'board refreshment'.
• Proxy campaign at Campbell Soup Co: Activist Third Point has filed a lawsuit against Campbell Soup Co alleging the company misled investors and seeking injunctive and declaratory relief. 
• In Brief | Only (an estimated) one third of proxy fights ever become public?  A new report into trends in activism in Canada flags that there has been a substantial uptick in private engagement as a preferred method of engagement.

• In Brief | Focus on renewables: BlackRock has appointed a Sydney-based managing director to lead its renewable energy investments in Asia Pacific. Charlie Reid is relocating from London for the role and will be responsible for sourcing, executing and managing renewable infrastructure assets in APAC.  BlackRock currently has $5 billion of equity assets under management spread across 250 solar and wind farm projects globally. Of this, 40 projects are based in APAC countries of Australia, Japan and Taiwan.

• Recent AGM results: 'First strike' at Healthscope, Near 'first strike' at Challenger, defeat of shareholder climate resolution at Wagners Holding Co Ltd. 
• Engagement with proxy advisers on the rise? 

• United Kingdom | Rethinking corporate reporting? The Financial Reporting Council has launched a project to 'challenge existing thinking about corporate reporting' and has called for participants to join an advisory group to support the project.

Australian Securities and Investments Commission (ASIC)

• ASIC has released its Annual Report 2017-2018 setting out its key achievements over the past financial year.
• Ban on flex commissions in car finance has commenced: ASIC issued a statement reminding lenders that the ban on flex commissions in the car finance market commenced on 1 November.  ASIC has cautioned lenders it will be monitoring compliance and reminded them that penalties apply.  
• ASIC Commissioner Cathie Armour has called on the investment management industry to raise standards of professionalism

Australian Prudential Regulation Authority (APRA)

• In Brief | The AFR reports that the APRA will receive $58.7 million in additional funding over four years to be used to enable greater focus on the identification of new and emerging risk areas (eg cyber and fintech), to fund APRA's review of its enforcement strategy and to enable it to make better use of its enforcement powers.  
• In Brief | APRA has released its monthly banking statistics (MBS) for September 2018.  Separately, the regulator has written to ADIs regarding changes to the MBS publication that will flow from changes to its underlying data source from mid-2019 and also proposed extending coverage of the monthly banking statistics to credit unions and building societies (but not registered financial corporations).

Other Developments

• In Brief | The AFR reports that Assistant Treasurer Stuart Robert has indicated it is unlikely the government will support the establishment of a new financial regulator, stating that he is of the view that the current 'twin peaks' model is effective, provided the regulators exercise their powers appropriately. 

Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry (Financial Services Royal Commission)

• Top Story | APRA's response to the Financial Services Royal Commission's Interim Report  
• Time to amend the Corporations Act to include a UK style s172 duty? This is among the suggestions put forward in the Financial Rights Legal Centre (FRLC) submission to the RC interim report.
• Governance Institute submission in response to the Financial Services Royal Commission’s Interim Report: Need to revisit 'ethical frameworks' underpinning culture to ensure alignment between theory and practice.
• APRA has released its submission in response to policy questions arising in relation to Round 6 hearings into general and life insurance.
• In Brief | Final Round of Financial Services Royal Commission Hearings: The next and final round (Round 7) of Financial Services Commission public hearings will take place in Sydney, from 19-23 November, and in Melbourne, from 26-30 November.  The seventh round of public hearings will focus on policy questions arising from the first six rounds.
• In Brief | Trust in banks on the decline in the aftermath of the Financial Services Royal Commission according to Deloitte study which found that only 21% of people believe banks in general have their customers' best interests at heart (rising to 36% in relation to their own bank).   

Other Developments

• The Australian Banking Association has raised concerns about the draft legislation on Design and Distribution Obligations and Product Intervention Powers
• Open Banking update | Consultation on proposed rules to implement the Consumer Data Right concluded on 12 October and the ACCC has now released submissions.  The ACCC has also announced consultation on issues expected to arise when the CDR is rolled out to the energy sector is expected to be scheduled for early 2019. 
• United Kingdom | Time to regulate small business lending to avoid a repeat of the 'scandalous events at RBS’ GRG'? The UK Treasury Committee has released its report on SME finance and has recommended (among other things) the extension of regulatory protections to SMEs. 
• CBA has announced the sale of CFSGAM and executive appointments 
• In Brief | The Australian Financial Complaints Authority (AFCA) 'opened for business' on 1 November ushering in a 'new era for financial dispute resolution, delivering free, fast and binding services for all financial complaints, whether they be related to banks, credit providers, insurance companies or superannuation funds' the government said.  The ABA issued a statement echoing the government in welcoming the commencement of the AFCA scheme.

• Should shareholders expect that auditors will identify and clearly communicate 'systemic' issues? An opinion piece in The AFR suggests that Financial Services Royal Commission should 'next turn' its attention to the role of auditors in identifying and signalling systemic risks to investors.
• In Brief | New accounting investigation at GE: The WSJ reports that General Electric has cut its dividend to 1c a share (down from 12c), and disclosed that the US Department of Justice has opened an investigation into the company's recent accounting practices (in addition to the Securities and Exchange Commission's investigation).  Reportedly, ratings agency Standard & Poor's has cut the company's credit rating and Moody's have placed the company under review.

Cybersecurity

• Human error remains a key cause of privacy breaches according to OAIC: OAIC has released quarterly statistics for July-September 2018
• Data breach settlements at Facebook and Yahoo announced.

Climate Risk

• Direct accountability for executives to deliver against climate plan at IAG 
• Pressure on companies to address their 'hypocritical' stances on climate lobbying: The FT writes that a coalition of investors has challenged 55 companies to review the positions adopted by trade associations and organisations of which they are members.
• 'Landmark case'? The New York Attorney General has brought a lawsuit against ExxonMobil accusing the firm of defrauding investors by misleading them about the company's approach to managing climate risk. 
• In Brief | The AFR reports that low ESG scores (and more particularly exclusion from the MSCI ESG Leaders index) may be a predictor of the success of company.   'Below average ESG scores are not predictive of specific disasters, but they are associated with a higher likelihood of something bad happening…In a good ESG company it's less likely that an oil platform blows up than in a bad [ESG] company' a MSCI representative is quoted as stating.

Other Developments

• Mismatch between stated commitments and actions? Google employees have reportedly staged a walk out in protest over the company's handling of sexual harassment/misconduct cases.  The group have called for an end to 'reassuring PR' and 'transparency, accountability, and structural change' at the company.  
• In Brief | Standards Australia has announced that ISO 31000:2018, Risk Management - Guidelines has been published as an Australian adoption of the international standard.

• DIN Regime | The Governance Institute submission on the proposed legislation has reiterated its calls for the extension of the proposed Director Identification Number (DIN) regime to company secretaries