Governance News 8 July 2020

60 mins (PDF download)  07.07.2020 Mark Standen, Siobhan Doherty, Kate Hilder
COVID-19 Special Edition
This issue of Governance News, includes coverage of: a) key COVID-19 related developments including the ABA's announcement of a second phase of support for customers impacted by COVID-19 ; b) other financial services and regulatory developments; c) the increasing focus on disclosure of 'non-financial risks' including climate risk by regulators, investors and stakeholders; and d)  an update on UK audit reform. 

In addition, this issue includes coverage of the joint report from Aon and the Governance Institute into trends in executive remuneration, board workload and board composition and separately coverage of the 30% clubs new diversity targets (UK) and expanded focus (Australia).  

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-july-2020

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COVID-19 Key Developments Navigation Show below Hide below

  • COVID-19: How to build resilience and continuity in your technology supply chain
  • COVID-19: How project assessment frameworks can help build sustainable infrastructure
 

Boards and Directors Navigation Show below Hide below

  • The IoD has formally launched a new Centre for Corporate Governance to conduct research into key the key challenges facing boards

Diversity Navigation Show below Hide below

  • The Australian chapter of the 30% club expands its focus to the ASX 201-300
  • An opportunity to accelerate change: 30% club sets three new diversity targets for FTSE 350 companies to reach by 2023
  • Equilar says California's board gender quota law has accelerated the pace of progress on board gender diversity in that state, but suggests that similar laws may be unnecessary in certain other states given the existing rate of progress
  • In Brief | A diversity policy is no longer enough? The WSJ reports that the community now expects companies to follow through on their statements in support of BLM protests/condemning racism, by taking concrete, measurable steps to actually improve their organisational diversity
 

Remuneration Navigation Show below Hide below

  • Top Story | Trends in executive remuneration, board composition and workload: Joint Aon & Governance Institute report

Meetings and Proxy Advisers Navigation Show below Hide below

  • COVID-19: 'Virtual AGMs, electronic signatures replacing "wet" signatures and letting people execute documents electronically are all no brainers' says Senator Bragg
  • Observations from US virtual meetings: Soundboard Management suggests ways in which companies can improve shareholder participation going forward
 

Disclosure and Reporting Navigation Show below Hide below

  • COVID-19: ASIC focus areas for 30 June financial reports
  • COVID-19: US investors call on SEC to mandate disclosure of social and governance issues
  • COVID-19: Time for companies to expand their reporting beyond direct employees: The ACCR has called on companies to review and improve their reporting on the whole of their labour force
 

Markets and Exchanges Navigation Show below Hide below

  • The ASX proposes to delay the CHESS replacement 'go live' date by 12 months – consultation paper released
  • In Brief | Call for reduced trading hours: The Investment Association and the Association for Financial Markets in Europe have made the case to Euronext for trading hours to be reduced seven hours (a reduction of 90 minutes) arguing that shorter hours would deliver benefits to all stakeholders
     

Financial Services Navigation Show below Hide below

  • COVID-19: Avoiding the September 'cliff'? The ABA has announced the next 'phase' of support for customers financially impacted by the pandemic
  • APRA has updated its regulatory approach to loan deferrals
  • FSRC Referrals: APRA announced regulatory actions relating to two cases referred by the Hayne Commission
  • ASIC has issued a no-action position to enable AFS licensees to count right-of-use lease assets towards meeting their financial resource requirements
  • Societe Generale Securities has pleaded guilty to client money offences
  • COVID-19: ASIC reminds superannuation funds of its expectations of them during the pandemic
  • COVID-19: So far funds have paid out $18.1bn under the government's early release of superannuation scheme and APRA has said 'high volumes of applications are expected' for the second tranche of applications
  • COVID-19: Aviva investors research shows 37% of people have paused/decreased their retirement savings during the UK lockdown
  • Financial Advice: 'Smarter regulation' to reduce costs to the sector is what's needed, Committee hears
  • Free service for consumers: AFCA has banned a paid third party representative from lodging complaints on behalf of customers for 15 months
  • AFCA reports a 13.7% uptick in the number of complaints received during the period 1 July 2019 to 30 June 2020
  • In Brief | ASIC has announced that from 27 July, the ASIC Regulatory Portal will become the central access point for accessing various ASIC services and will replace other submission channels for submitting applications for relief and fundraising and corporate finance documents
  • In Brief | CBA has partnered with Our Watch to launch a new portal providing free resources for employers to assist them in supporting staff who are experiencing domestic and/or family violence
 

Accounting and Audit Navigation Show below Hide below

  • Top Story | UK regulator sets parameters and timeline for the big four firms to (operationally) separate their audit practices

Risk Management Navigation Show below Hide below

Climate risk

  • Top Story | PRA expects banks and insurers to have 'fully embedded their approaches to managing climate-related financial risks by the end of 2021'
  •  Investment in recycling capability: $190 recycling modernisation fund announced
  •  In Brief | Already signs that the market has shifted? The SMH quotes AustralianSuper Chief Investment Officer Mark Delaney as saying that the market is already punishing 'climate laggards'
  •  In Brief | The Greens have adjusted their climate targets to reflect new climate modelling that suggests that existing targets are not sufficient to limit warming to below 1.5 degrees.  The Greens' new policy is net zero emissions by 2035 with a 75% reduction on 2005 levels achieved by 2030
    In Brief | Reportedly Japan is considering retiring 100 ageing and inefficient coal fired power plants as part of the push to phase out coal power by 2030

 Whistleblowing

  •  ASIC whistleblower guidance for company officers and company auditors released
    In Brief | Reportedly the CDPP has reduced the changes against ATO whistleblower Richard Boyle from 66 to 24 after a parliamentary report concluded the ATO's investigation into his public interest disclosure was 'superficial'.  Reportedly senator Rex Patrick has called for the remaining charges to also be dropped

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https://www.minterellison.com/articles/governance-news-8-july-2020

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