Financial Services and Credit Quarterly Update July 2022

Welcome to the new financial year. Our latest Financial Services and Credit Quarterly Update can be downloaded free here.

In mid-2022, Australia is facing a period of increased economic and political uncertainty.

Rising inflation is likely to have a significant impact on the financial sector, while the whole economy also contends with labour shortages and supply chain disruption.

The change of power in Canberra will bring a new regulatory agenda; already the Albanese Government has stated its intention to regulate Buy Now Pay Later. Overall we can expect that Labor's more interventionist approach to governing will lead to an increase in regulation in the next few years.

The digital economy is taking up more and more regulator attention. In the last quarter we have seen several developments. ASIC announced its expectations on cybersecurity following the RI Advice case, which found that poor management of cyber risks was a breach of AFSL obligations. APRA has published its views on risk management in relation to crypto assets, AUSTRAC has released guidelines on ransomware and digital currencies, and the ACCC has released an interim report on online marketplaces as part of its digital platforms inquiry.

We hope you find our update useful.

Patrick Dwyer and Kathleen Harris
Legal Directors