• Draft legislation to modernise business registers and introduce a legal framework for the implementation of director identification numbers (DINs) has been released for consultation. 

• In Brief | A simple way to increase board diversity?  Noting the dearth of women on boards, the AFR questions why so few companies advertise boardroom jobs publicly. 'Instead of relying on the chairman's network of contacts to quietly sound out candidates, or a head hunter's private list, why not simply place an advert'? The idea is neither 'new nor welcome' (due to concerns over being swamped with unsuitable candidates) but 'it is a good first step' the AFR suggests.

• Will Australia follow the UK and the US and require firms to report the ratio of CEO pay to median worker pay?  Labor has announced that if elected, it will introduce the requirement.  The AFR reports that Domino's Pizza CEO Don Meij has called on the coalition to adopt the policy.

• United States | SEC has announced a settlement with Tesla Inc and CEO/Chair Elon Musk over Tweets: Tesla Inc has agreed to corporate governance and other reforms, including the removal of Mr Musk as Chair.  In addition, Tesla and Mr Musk have agreed to pay $US40m in financial penalties.

Australian Securities and Investments Commission (ASIC)

• Top Story | ASIC's review of compliance with breach reporting obligations has identified 'unacceptable delays by financial institutions in reporting, addressing and remediating significant breaches'
• Financial Advice reforms | ASIC has released guidance on code of ethics compliance schemes for financial advisers
• ASIC commits to being a 'strategic and forceful regulator' with a focus on small business
• In Brief | ASIC has announced fee relief and financial counselling for the drought-affected: ASIC announced that it is offering assistance in the form of relief from various company-related fees that may be payable and providing information about financial counselling services for farmers and related businesses suffering financial hardship as a result of the current drought. 
• In Brief | Managed discretionary account providers must now be licensed: MDA providers who do not have the required AFS licence authorisations must cease providing MDAs from 1 October 2018 until they have obtained those authorisations.
• In Brief |  New fintech/regtech cooperation agreements: ASIC has signed a fintech cooperation agreement with the US Commodity Futures Trading Commission and separately, ASIC has entered a cooperation agreement on fintech and regtech issues with its Luxembourg counterpart (CSSF).

Royal Commission into Misconduct in the banking, superannuation and financial services industry (Financial Services Royal Commission)

• Top Story | Financial Services Royal Commission Interim Report released
• Top Story | Round 6: Financial Services Royal Commission Round 6 Insurance — Policy questions arising
• In Brief | Extension of time for the Commission looks unlikely? The Guardian reports that Labor is hosting a series of roundtables around the country in places that the Financial Services Royal Commission has not visited, to provide a platform for rural and regional Australians to tell their stories as part of a campaign to extend the Commission.  Reportedly the government has said that it is open to extending the Commission, should the Commissioner request it.  To date, no request has been made. 

Other Developments

• Open Banking update | Consultation on stage 2 of exposure draft legislation to implement the Consumer Data Right (CDR)
• Consumer Credit | Australia's largest consumer credit reporting agency Equifax has been ordered to pay $3.5 million in penalties and to remediate consumers after admitting that its representatives used unfair sales tactics and made misleading representations about its paid credit reports.
• In Brief | In line with the recommendations of the inquiry into Reforms for Cooperatives, Mutual and Member owned Firms, the government is consulting on draft legislation which proposes to: introduce a definition of a mutual entity and remove the 'uncertainty' for transferring financial institutions and friendly societies in respect of the demutualisation provisions in Part 5 of Schedule 4 of the Corporations Act 2001 (Cth).

Cybersecurity

• APRA has issued an updated information paper on managing risks associated with outsourcing cloud computing services and cautioned that entities can expect that the 'better practices' outlined will be incorporated into future prudential standards/guidance.
• In Brief | Test of the General Data Protection Regulation (and the requirement to report breaches within 72 hours): Facebook could reportedly be fined as much as $US1.63m by Ireland's Data Protection Commission in connection with a data breach in which hackers reportedly compromised the accounts of 50 million EU based users.  Facebook's share price reportedly fell following reports of the breach.  Under GDPR, companies face fines if they fail to take sufficient steps to safeguard user data and are also required to report breaches within 72 hours. 

• Top Story | Tougher penalties for 'white collar crime'?  The government is consulting on draft legislation which proposes to impose increased penalties for corporate and financial sector misconduct.