Financial Services and Credit Quarterly Update – January 2018

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Welcome to 2018. 2017 ended with a bang, in the form of a Royal Commission into misconduct in the banking, superannuation and financial services industries announced on 30 November. You’ll find an overview of the Royal Commission and other developments in the last quarter of 2017 in our latest Financial …

Soon it will be easier to become a bank

Regulation makes it hard to set up a new bank in Australia. But the Government says the banking system should be more competitive. Well, wouldn’t it be more competitive if they made it easier to become a bank? Finally, something is being done. The Australian Prudential Regulation Authority (APRA) recently …

Open Banking for Australia: hand over your data

The Federal Government announced in the 2017-18 Budget that it would introduce an “Open Banking” regime in Australia. Under Open Banking, banks will have to share product and customer data with customers and third parties, if the customer gives consent. There is already plenty of sharing of bank data. Accounting software such …

Financial Services and Credit Quarterly Update October 2017

Our latest Financial Services and Credit Quarterly Update for the third quarter of 2017 can be downloaded here. In the last 3 months, APRA has been much in the news: draft legislation for the APRA-administered BEAR has now been released; APRA is consulting on a new regime to make it easier to become …

The BEAR Necessities: Understanding the Proposed Banking Executive Accountability Regime

In response to the Coleman Report on Australia’s four large banks (see here for a summary), the 2017 Federal Budget included a proposed Banking Executive Accountability Regime (BEAR) to be administered by the Australian Prudential Regulation Authority (APRA). Treasury released a consultation paper on the BEAR on 13 July 2017 (the Paper) and has been …

What’s happening with crowdfunding

Starts soon Equity crowdfunding will finally begin in Australia from 29 September 2017. When we last reviewed crowdfunding a year ago, Australia’s efforts to introduce crowdfunding laws had been stalled by the 2016 election. After the election, the proposed legislation was brought back and passed through the Parliament in March 2017. Even before the …

Financial Services and Credit Quarterly Update July 2017

Our latest Financial Services and Credit Quarterly Update for the second quarter of 2017 can be downloaded here. In the last three months there have been a number of important announcements in the Federal Budget affecting the financial services sector. These include: the new big bank levy, which is also …

Banks in the firing line: Government adopts Coleman Report recommendations

The 2017 Budget has a whole bunch of measures to regulate and tax the banking and financial sector. Altogether they are (in the words of the Treasurer) nothing less than “an overhaul of financial system.” A summary of the banking and financial services reforms announced in the Budget can be …

Self-reporting of significant breaches for credit licensees proposed

Australian credit licence (ACL) holders will have to self-report significant actual or likely breaches of their licence obligations if a proposal by the taskforce conducting a Review of ASIC Enforcement (Taskforce) is adopted. One of the responsibilities of the Taskforce is to look at the adequacy of the framework for …

Sandbox or sandtrap?

Like many occupations and professions today, you must get a licence to carry on a financial services or consumer credit business, unless you’re lucky enough to fit within an exemption. It’s not easy to get a financial services or credit licence. But until you get one, you can’t really test …

Robo-advice: just advice, or is it a product?

Robo-advice is getting a lot of attention now, but online tools to assist in making financial decisions have been around in various forms for years. Back in 2004, there was an investor website with a focus on US stocks. Subscribers could use it to search for stocks that met investment …