Governance News 8 December 2021

60 minute read (PDF Download)  08.12.2021 Mark Standen, Siobhan Doherty, Kate Hilder

This issue includes coverage of key financial services developments including the release of the first independent review of the Banking Code since the Hayne Commission.  The issue also covers several key ESG developments including a report from the Australian Chapter of the Climate Governance Initiative, produced by the Australian Institute of Company Directors, on director attitudes to climate risk governance and the barriers and drivers of action on the issue and more…

Full coverage of this weeks content is now available.

Past issues are available

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https://www.minterellison.com/articles/governance-news-8-december-2021

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Boards and Directors Navigation Show below Hide below

  • How non-executive directors view climate risk governance: CGI Australia report provides insights 

Remuneration Navigation Show below Hide below

  • SEC issues guidance on 'spring-loaded' awards
  • Pay for performance?  UK High Pay Centre report finds payment of incentives is almost always guaranteed
     

Shareholder Activism Navigation Show below Hide below

  • 'Say on Climate' continues to gain traction

Institutional Shareholders and Stewardship Navigation Show below Hide below

  • In Brief | ACSI report highlights shortcomings in company engagement with First Nations people and offers guidance to companies on improving engagement practices.  ACSI CEO Louise Davidson makes clear that this is an area of concern for investors, given the potential financial and reputational damage that can result.  'Ultimately, substandard engagement can undermine a company’s long-term success and ability to operate effectively' Ms Davidson states
  • In Brief | The fourth edition of RIAA’s Responsible Investment Super Study 2021 has found that super funds demonstrating leading practice responsible investment are taking a bigger share of the market and financially outperforming their peers
     

Meetings and Proxy Advisers Navigation Show below Hide below

  • ISS Announces 2022 Benchmark Policy Updates

Regulators Navigation Show below Hide below

  • ASIC's top five issues for CFOs heading into 2022: Climate Risk Disclosure and Cyber Resilience top the list

Financial Services Navigation Show below Hide below

  • Top Story | Independent Review of the Banking Code calls for banks to maintain Hayne Commission momentum
  • Top Story | Status update: Tracking progress against each of the Hayne Commission's 76 recommendations
  • Financial counsellors want BNPL products to be regulated under the National Credit Code
  • 'Disaster' claims: ASIC calls on general insurers to prioritise compliance with DDOs and claims handling reforms
  • ASIC has released insights into its review of insurance claims handling during the Black Summer bush fires
  • Consultation launched on draft legislation to establish a reinsurance pool covering property damage caused by cyclones and cyclone related flood damage
  • Strengthening crisis preparedness: APRA consults on new cross-industry prudential standards
  • ASIC releases guidance on limited advice
  • In Brief | The Corporate Collective Investment Vehicle Framework and Other Measures Bill 2021 has been referred to the Senate Economics Legislation Committee for report by 3 February 2022
  • In Brief | Jobkeeper information required to be disclosed by listed entities, including whether the entity or its subsidiaries made voluntary repayments of Jobkeeper payments, and the total amount of those repayments if they did, is now publicly available on ASIC’s website.  ASIC will update the report monthly.  The current captures Jobkeeper information disclosed up until 30 November 2021
  • In Brief | ASIC has launched 'a centralised financial advice webpage' to make ASIC guidance easier to find and access
     

Accounting and Audit Navigation Show below Hide below

  • ASIC to 'routinely' tell directors about audit quality concerns? ASIC consults on proposed changes to its approach to communicating the findings of audit reviews
  • Greenpeace report finds investors are unwilling to vote against auditor appointments (despite climate shortcomings)
     

Risk Management Navigation Show below Hide below

  • ASIC has released an update on financial firms' progress towards improved cyber-resilience, supply chain risk remains an area of concern
  • In Brief | Climate-related issues dominate MSCI's predicted top 10 ESG trends for 2022.  MSCI predicts that as the world's largest companies embrace net-zero,  pressure on suppliers to decrease their GHG emissions will significantly increase over the next year to the point where it 'may become as familiar to suppliers as downward pressure on pricing'
     

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https://www.minterellison.com/articles/governance-news-8-december-2021