Aggregated News From Investment Management Regulators

Australia

ASIC warns super trustees to be transparent in their underperformance communications to members

ASIC today released the findings from its review of superannuation trustees’ communications with their members following the first annual performance test for MySuper products. The test measures the performance of MySuper products against prescribed benchmarks according to a trustee’s own strategic asset allocation. Report 729 Review of trustee communications about the MySuper performance test (REP 729) focuses on ASIC’s review of performance test communications by the 12 trustees of the 13 products that failed the test in 2021 (details below). The review found that trustees whose products failed generally complied with the legal obligations to notify their members of the failed test...

ASIC calls for better disclosure of business risks and asset values following financial reports review

ASIC’s latest review of the financial reports of 70 listed entities for the year ended 31 December 2021 has resulted in inquiries of 18 entities about 31 matters, mostly related to insufficient disclosure of business risks in the operating and financial review and impairment of assets. ASIC Commissioner Sean Hughes said, ‘We acknowledge that many companies are facing changing market conditions. With this comes increasing demand for better information about uncertainties, key assumptions, business strategies and risks. ‘Financial reports are critical in providing useful and meaningful information for investors and other users. Our most recent review has identified that some entities...

ASIC releases new and updated guidance for corporate collective investment vehicles

ASIC has today released a range of documents to support the licensing and other requirements for corporate collective investment vehicles (CCIVs). The requirements come into effect on 1 July 2022, when the CCIVs regime commences. Report 728: Response to submissions on CP 360 Corporate collective investment vehicles: Preparing for the commencement of the new regime (REP 728) highlights the key issues from, and ASIC’s response to, submissions to ASIC’s consultation on the new regime’s licensing (see CP 360). Respondents to CP 360 generally supported ASIC’s proposals for the licensing of corporate directors to operate a CCIV. The key issues raised by...

Squirrel Super to pay $55,000 penalty for false and misleading marketing

The Federal Court has ordered Squirrel Superannuation Services Pty Ltd pay a $55,000 penalty for false and misleading marketing regarding investing in residential property via self-managed superannuation funds (SMSF). The Court found Squirrel distributed a brochure conveying misleading representations about residential property investment returns at a seminar and via email on about 9,420 occasions, between March 2015 to January 2019. Squirrel was found to have engaged in conduct that was misleading and deceptive or likely to mislead or deceive. ASIC issued two Infringement Notices to Squirrel regarding the same conduct in October 2018 which Squirrel failed to pay. ASIC then took...

Anthony Torre charged with stealing and fraud

On 17 June 2022, Mr Anthony Paul Torre, of Mosman Park, Western Australia, appeared at the Perth Magistrates Court charged with eight counts of fraud and five counts of stealing pursuant to sections 409 and 378 of the Criminal Code (WA). Following an ASIC investigation, it is alleged that between March 2010 and January 2015, Mr Torre stole, or with intent to defraud obtained, approximately $1.882 million from his clients. It is alleged that Mr Torre used funds from his clients’ accounts for his own benefit. This matter is being prosecuted by the Commonwealth Director of Public Prosecutions. The matter has been adjourned...

ASIC releases May 2022 financial adviser exam results

ASIC has released exam results from the 17th Financial Advisers Exam cycle, held in May 2022. The exam has been continuously conducted by the Australian Council for Educational Research (ACER) since its inception and follows a rigorous process to ensure all candidates in all cycles are held to the same standard. In this exam cycle: 496 advisers sat the May exam; 42.7% (212) of candidates passed the May exam; 72.2% of candidates were resitting the May exam for at least the second time. Overall results: To date 20,000 candidates have sat the exam. Over 91% of candidates who have sat the exam have passed,...

How planning ahead can benefit you in retirement

Work out how much money you need in retirement Regularly check your super and get financial advice Top up your super We all know that the COVID-19 pandemic has caused widespread disruption to our lives and for many, that included their retirement plans. Some lost their jobs at a crucial life stage, others were unable to sell businesses that were going to fund their retirement while for some, their ability to save was diminished. With life slowly returning to normal, ASIC Chief Operating Officer Warren Day joined ABC Melbourne Drive host Raf Epstein to discuss ways to kickstart our retirement...

Former Queensland financial adviser convicted for breaching ASIC banning order

Former Queensland financial adviser Lawrence Toledo has been convicted and fined $1500 after pleading guilty to three charges of breaching an ASIC banning order. In 2017, Mr Toledo was banned from providing financial services for seven years after ASIC found he had failed to act in the best interests of his clients when advising them to establish a self-managed superannuation fund (SMSF) to purchase properties (17-304MR). Despite his ban remaining in force until 5 September 2024, Mr Toledo continued to provide financial product advice and deal in financial products. Mr Toledo breached his banning order by: providing financial advice to a SMSF to...

Caloundra man sentenced for insider trading

Mr Jin Xi Li, of Caloundra, Queensland, has been sentenced to nine months imprisonment for insider trading. The Court ordered Mr Li be released forthwith on recognisance upon the condition that he be of good behaviour for a period of two years. Mr Li traded in Contracts for Difference (CFD) of PanAust Limited (ASX: PNA) while he was in possession of inside information regarding a takeover bid for PanAust by Guangdong Rising H.K (Holding) Limited (GRAM) (17-390MR). He made $343,000 profit as a result of his criminal conduct. ASIC Deputy Chair Sarah Court said ‘This outcome demonstrates the criminal consequences that...

ASIC reduces administrative burden for authorised representatives appointing claims handling staff

ASIC has issued relief to reduce the administrative burden on general insurance industry participants of notifying ASIC of large numbers of employees who provide claims handling and settling services on their behalf. ASIC has made a legislative instrument, ASIC Corporations (Notification of Authorised Representatives) Instrument 2022/301, which exempts Authorised Representatives from the requirement to notify ASIC of the sub-authorisation of employees who provide a claims handling and settling service on their behalf. Authorised Representatives are persons (including companies) authorised to provide a financial service on behalf of an Australian Financial Services (AFS) licensee. For example, a company engaged as an Authorised...

Court of Appeal orders a retrial for Ben Jayaweera

On 10 June 2022, the Court of Appeal of the Supreme Court of Queensland delivered its decision regarding an appeal against conviction and sentence brought by Ben Jayaweera, a former financial adviser and director of Growth Plus Financial Group Pty Ltd (in Liquidation). The Court of Appeal allowed the appeal on grounds including that deficiencies in the trial judge’s directions to the jury resulted in a miscarriage of justice. Mr Jayaweera had previously been convicted in October 2019 of six counts of dishonestly causing his clients a pecuniary detriment (19-285MR). A new trial was ordered on all 6 counts and Mr Jayaweera’s convictions were set aside. The...

ASIC charges three former Remedy Housing personnel for involvement in alleged mortgage scam

On 16 June 2022, Brent Lindsay Smith and Fue Hiedi Mano of St Albans, Victoria, and Mahmoud Khodr of Melbourne, Victoria, appeared in the Melbourne Magistrates Court charged with criminal directors’ duties breaches relating to ‘interest-free’ mortgages offered by Remedy Housing Pty Ltd. It is alleged that between November 2019 and February 2021, the directors and officers of Remedy Housing, Mr Smith, Mr Khodr and Ms Mano, dishonestly represented to consumers that: Remedy Housing would provide a consumer with an ‘interest-free mortgage’ and title to a home within 12 months of payment of a deposit of at least $10,000 ; ...

Regulator Information

Abbreviation: ASIC
Jurisdiction: Australia
Abbreviation: BCSC
Jurisdiction: Canada
Abbreviation: BVI FSC
Jurisdiction: British Virgin Islands
Abbreviation: CSA
Jurisdiction: Canada
Regulator Name: Capital Market Authority
Abbreviation: CMA
Jurisdiction: Saudi Arabia
Abbreviation: CIMA
Jurisdiction: Cayman Islands
Regulator Name: Central Bank of Armenia
Abbreviation: CBA
Jurisdiction: Armenia
Regulator Name: Central Bank of Iceland
Abbreviation: CB IS
Jurisdiction: Iceland
Abbreviation: CBR
Jurisdiction: Russian Federation
Abbreviation: CSRC
Jurisdiction: China
Abbreviation: CSSF
Jurisdiction: Luxembourg
Abbreviation: CFTC
Jurisdiction: USA
Abbreviation: CFPB
Jurisdiction: United States
Abbreviation: HANFA
Jurisdiction: Croatia
Abbreviation: CySEC
Jurisdiction: Cyprus
Abbreviation: DFSA
Jurisdiction: Denmark
Abbreviation: AFM
Jurisdiction: Netherlands
Regulator Name: European Banking Authority
Abbreviation: EBA
Jurisdiction: Supranational
Abbreviation: EIOPA
Jurisdiction: Supranational
Abbreviation: ESMA
Jurisdiction: ESMA
Abbreviation: FDIC
Jurisdiction: United States
Regulator Name: Federal Reserve System
Abbreviation: FRB US
Jurisdiction: United States
Abbreviation: FRA
Jurisdiction: Egypt
Abbreviation: FCNB
Jurisdiction: Canada
Regulator Name: Financial Conduct Authority
Abbreviation: FCA
Jurisdiction: United Kingdom
Abbreviation: FinCEN
Jurisdiction: United States
Abbreviation: FINRA
Jurisdiction: United States
Regulator Name: Financial Market Authority
Abbreviation: FMA
Jurisdiction: Austria
Regulator Name: Financial Markets Authority
Abbreviation: AMF
Jurisdiction: Canada
Regulator Name: Financial Markets Authority
Abbreviation: AMF
Jurisdiction: France
Regulator Name: Financial Markets Authority
Abbreviation: FMA
Jurisdiction: New Zealand
Abbreviation: FSMA
Jurisdiction: Belgium
Abbreviation: SFC
Jurisdiction: Colombia
Abbreviation: FIN-FSA
Jurisdiction: Finland
Abbreviation: FME IS
Jurisdiction: Iceland
Abbreviation: FSA
Jurisdiction: Norway
Abbreviation: IOMFSA
Jurisdiction: Isle of Man
Abbreviation: JFSC
Jurisdiction: Jersey
Abbreviation: MFSA
Jurisdiction: Malta
Abbreviation: MSC
Jurisdiction: Canada
Abbreviation: MAS
Jurisdiction: Singapore
Abbreviation: NFA
Jurisdiction: United States
Abbreviation: CNV
Jurisdiction: Argentina
Abbreviation: OFAC
Jurisdiction: United States
Abbreviation: OCC
Jurisdiction: United States
Abbreviation: OSC
Jurisdiction: Canada
Abbreviation: CMVM
Jurisdiction: Portugal
Abbreviation: SEBI
Jurisdiction: India
Abbreviation: FSA
Jurisdiction: Japan
Abbreviation: SEC
Jurisdiction: United States
Abbreviation: SEC NG
Jurisdiction: Nigeria
Abbreviation: SEC TH
Jurisdiction: Thailand
Abbreviation: CVM
Jurisdiction: Brazil
Abbreviation: SFC
Jurisdiction: Hong Kong
Regulator Name: State Securities Commission
Abbreviation: SSC
Jurisdiction: Vietnam
Abbreviation: FI
Jurisdiction: Sweden
Abbreviation: FINMA
Jurisdiction: Switzerland
Abbreviation: UST
Jurisdiction: United States

Recent Articles

Proposed Rule Change to Amend FINRA Rule 2231 (Customer Account Statements)

Financial Industry Regulatory Authority, Inc.

Revision of Recommendation 25 – White Paper for Public Consultation

The Financial Action Task Force (FATF) is conducting a review of Recommendation 25 (R.25) on the transparency and beneficial ownership (BO) of legal arrangements....

ASIC warns super trustees to be transparent in their underperformance communications to members

ASIC today released the findings from its review of superannuation trustees’ communications with their members following the first annual performance test for MySuper products. The...

EBA replies to European  Commission’s call for advice on the Mortgage Credit Directive review

The European Banking Authority (EBA) published today an Opinion and Report in response to the European Commission’s Call for Advice (CfA) on the review of the Mortgage Credit Directive (MCD) .

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