ASIC

The Federal Court has ruled Bit Trade, the operator of the Kraken #crypto exchange in Australia, failed to comply with the design and distribution obligations when offering a margin trading product to Australian customers. Bit Trade provided for margin extensions to be made to users of the Kraken exchange and repaid in either digital assets or national currencies. The product has been available since October 2021 without a target market determination, as required by law. Justice Nicholas that a margin extension in a national currency created a ‘deferred debt’, meaning the product was a credit facility and subject to the design and distribution obligations. ASIC Deputy Chair Sarah Court said, ‘We initiated proceedings to send a message to the crypto industry that we will continue to scrutinise products to ensure they comply with regulatory obligations in order to protect consumers.’ Read more https://lnkd.in/gxRKmtNg #DDO

‘Greenwashing claims mislead investors and consumers, and undermine confidence. Where we’ve identified greenwashing misconduct, ASIC has intervened to protect investors and consumers, and to maintain market integrity.‘   With the release of ASIC's report on #greenwashing interventions, ASIC Commissioner Kate O'Rourke has called on product issuers and their advisers to focus on the quality of #ESG disclosures and the data underpinning them.   Read more https://lnkd.in/gNkXSTzp

Speaking to #insolvency professionals at the Association of Independent Insolvency Practitioners Conference on 22 August, ASIC Commissioner Kate O’Rourke highlighted four areas that ASIC has been focusing on in relation to insolvency. These include updates to our regulatory guidance and outcomes from reviews on simplified liquidations and small business restructuring. ‘Your work at the insolvency frontline, and ASIC’s guidance that supports that work, couldn’t be more topical. We are acutely aware of the increases in the number of insolvencies in Australia, and the wider cost-of-doing-business pressures that are placing high levels of strain on Australian companies,’ Kate said. Read the full remarks https://lnkd.in/g4Bs3MPh

Australia’s public and private markets and emerging financial products will form a new pillar of ASIC’s expanded strategic priorities for 2024–28. Our latest corporate plan underscores our commitment to strengthening integrity across Australia’s #markets. ‘Trust in the financial system and markets means greater confidence which means more investment. That has direct benefits for the jobs and opportunities of Australians,’ ASIC Chair Joe Longo said. Read more https://lnkd.in/gXm9Uiz7 #CorporatePlan

We have published a summary document following our industry workshop on servicing First Nations communities with a focus on culture, community and engagement. The workshop highlighted a range of approaches for providing accessible and effective engagement channels for #FirstNations communities through in-person services in remote locations, including insights from financial services industry representatives. In his opening remarks to the workshop, ASIC Commissioner Alan Kirkland outlined the challenges that people in remote First Nations communities face accessing financial services in person. He also noted First Nations peoples’ experience of financial exclusion can be further compounded by the increased shift to online services. Any support for the financial inclusion of First Nations peoples must recognise these unique circumstances and experiences. We thank the workshop attendees – representing over 50 organisations – for their time and insights, and encourage stakeholders across the #FinancialServices industry to explore the practices shared in the document. Read more https://lnkd.in/gzGrHqUZ #banking #superannuation #insurance

Yat Nam (April) Yuen, who held various roles at collapsed stockbroking firm BBY Limited including Manager (Strategy), has been sentenced for aiding and abetting BBY to engage in dishonest conduct. Following her guilty pleas to two offences, Ms Yuen was convicted and received an aggregate sentence of 2 years and 6 months imprisonment, to be served by way of an intensive correction order. As a result of her convictions, Ms Yuen will automatically be disqualified from managing corporations for five years and will be unable to be involved in the business of a market participant in connection with securities and futures markets. ASIC Deputy Chair Sarah Court said, ‘ASIC is committed to investigating dishonest conduct in the licensed financial services industry and prosecuting such cases.’ Read more https://lnkd.in/ge2ZRvQN

ASIC has reviewed #scam prevention, detection and response of 15 banks outside the four major banks. Our findings showed a less mature approach to scams strategy and governance than we expected. ASIC Deputy Chair Sarah Court said: ‘While scam education initiatives many banks are delivering are one step in the right direction, this report outlines areas where banks needed to improve. ‘In case studies reviewed in the preparation of this report, ASIC observed examples of poor customer service, including slow response times, mishandling of reports, confusing communications, and failure to identify vulnerable customers impacted by scams. ‘We expect all banks regardless of their size, to pull their weight in the fight against scams. Boards and senior management have a key role to play in driving improvement.’ Read more https://lnkd.in/gTqeUTkY

ASIC Deputy Chair Sarah Court spoke with 7NEWS Australia over the weekend about our work coordinating the takedown of investment scam websites. ▶️ Watch the full report https://lnkd.in/gXjVr5m7

We have updated our reference checking and information sharing protocol for #FinancialAdvisers and mortgage brokers to allow mortgage aggregators to obtain references on mortgage broker licensees and their representatives. The updated protocol will commence on 20 August 2024, and reflects legislative changes enabling all licensees to request references about a prospective representative from the representative’s current and/or former mortgage aggregator. While the protocol does not impose obligations on licensees to request these additional references, we encourage licensees to request references where appropriate. Read more https://lnkd.in/gb7nyR5Y #credit #mortgage #regulatory

Since July 2023, our website takedown capability has disrupted over 7,300 phishing and investment #scam websites.   As we mark the capability’s first anniversary, we encourage consumers to remain vigilant to social media hyperlinks that promote online trading and #crypto investment scams.   ASIC action helped to take down over: 📉 5,530 fake investment platforms 🪝 1,065 phishing scam hyperlinks 🪙 615 cryptocurrency investment scams   Combating and disrupting investment scams is a key priority for ASIC. In addition to the takedown capability, we work across government and industry, including through the National Anti-Scam Centre, to make Australia a harder target for scammers.   Our Moneysmart website has information to help consumers minimise their risk of being scammed, including our investor alert list and ways to check if a person or company is licensed.   Read more https://lnkd.in/gEF8_8DQ