| 21-Dec-2022 |
AFMA's submission to the ESB emphasised that the proposed congestion management reforms are unnecessarily complex and likely to have a negative impact on market liquidity. As such, AFMA submitted a number of suggestions to support lower impact interventions.
|
Regulation |
ESB |
| 21-Dec-2022 |
AFMA's submission stated that government should more clearly articulate the policy intent to ensure alignment in the final design, that the development of the centralised Register be conducted in one phase with its timing aligned with the project to modernise Australia's business registers, that all entity types be included in the initial phase, and that the threshold be aligned with the AML/ CTF threshold.
|
Taxation |
Treasury |
| 16-Dec-2022 |
AFMA's submission highlighted our support for the general objective of the ISSB in developing standards to provide a comprehensive global baseline of sustainability-related disclosures. AFMA also stressed the importance of global harmonious reporting standards and supported the objective of the consultation.
|
Regulation |
Treasury |
| 13-Dec-2022 |
AFMA raised a number of concerns about Treasury’s proposal to implement ongoing price regulation in the Australian gas market. We called for a clear pathway to end the intervention, including regular reviews of the effectiveness and ongoing need for the intervention.
|
Regulation |
Treasury |
| 12-Dec-2022 |
AFMA commended ASX for the well-structured program responding to the identified challenges of market management during outages. Our membership broadly supports ASX's proposals however have mixed views on Intraday Restart responses. The submission discussed further opinions on the Order Download Service, Trade Download Service, CANCEL_ONLY Session State, Intraday Restart and other generalised feedback.
|
Regulation |
ASX |
| 06-Dec-2022 |
AFMA welcomed APRA's release of the final version of CPS 190, AFMA recommended that APRA consider extending the exemption of foreign ADI branches from other prudential standards when the home supervisor of the overseas bank adopts a regulatory regime consistent with the Core Principles of Banking Supervision set out by the BCBS.
|
Regulation |
APRA |
| 22-Nov-2022 |
AFMA's submission recognises that tackling slavery has become harder and is difficult to recognise. In light of this, AFMA asserts the importance of government allowing for practices to develop and improve over time; given the practical challenges in indentifying slavery. As the Issues Paper highlights, and AFMA echoes, slavery cannot be stopped simply by a law declaring it illegal; similarly, creating laws that simply shift the onus onto large entities also does not solve the issue.
|
Regulation |
Attorney General's Department |
| 14-Nov-2022 |
AFMA endorses the recommendations to retain the exemptions for stamping fees and brokerage and drew attention to the issues in the proposed removal of the exemption provided under regulation 7. 7A. 12E of the Corporations Regulations. AFMA proposed that retention of 7. 7A. 12E in the Regulations or an equivalent arrangement in any revised legislation remains appropriate.
|
Regulation |
Treasury |
| 11-Nov-2022 |
AFMA’s submission notes the increasing systemic liquidity risks arising from the interactions between a growing superannuation asset pool and financial markets. AFMA highlights this risk both within listed and unlisted assets; asking APRA to consider where systemic liquidity risks in superannuation might be most appropriately addressed.
|
Regulation |
APRA |
| 10-Nov-2022 |
The submission proposes the appropriate allocation of risk as a result of a ROLR event and the challenges for the financial market of certain proposed options, with particular focus on electricity; though AFMA attests that the principles are equally relevant to gas. AFMA affirms that to mitigate the risk of a cascading retailer failure, they should be adequately compensated for the risk they have taken on by providing ROLR services and that in the first instance, the costs of compensating the ROLR should be paid from the assets of the failed retailer.
|
Regulation |
AEMC |
| 04-Nov-2022 |
The submission highlighted AFMA's support for the review. A wider set of Terms of Reference was noted as a preference although AFMA believes the Review has collated substantial and integral issues with the IFM arrangements and is proving to be a constructive and worthwhile exercise. AFMA also suggested that this exercise be conducted periodically on a medium-term time horizon (around five years).
|
Regulation |
Treasury |
| 03-Nov-2022 |
The submission noted AFMA's agreement with the Government legislating the commitment made at the OECD to address the taxation challenges arising from the digital economy. The submission focused on AFMA's support for an exclusion for regulated financial services in respect of the application of the Pillar One measures, starting date for Australian Pillar Two adoption, compliance burden mitigation from Pillar Two adoption and a public statement from the OECD on jurisdictions in excess of the Pillar Two rate.
|
Taxation |
Treasury |
| 03-Nov-2022 |
AFMA offered constructive suggestions to the Review of the RBA whilst noting the validity of the Review process and pledged support towards a more frequent recurrence of the process perhaps every five years. The suggestions centred around monetary policy arrangements, performance against objectives, governance and institution.
|
Regulation |
Treasury |
| 28-Oct-2022 |
AFMA broadly supported the approach of implementing a regulatory framework. The submission focuses on areas in which the framework could be improved upon for example the treatment of ACCUs and SMCs as financial products, and the proposed information disclosure provisions.
|
Regulation |
DCCEEW |
| 21-Oct-2022 |
AFMA noted recent unprecedented disruptions in the electricity and gas markets however have reservations about the potential impact of AEMO's trading function on the energy market and operation of the proposed information powers. AFMA suggested the consultation period should be extended as the current period is inadequate for such significant reform.
|
Regulation |
Energy Ministers |
| 21-Oct-2022 |
AFMA commended APRA for introducing a principles-based approach to operational risk management that is outcome-focussed modernising the prudential architecture. AFMA noted concern that the draft standard may not be optimally calibrated in terms of its additional prescription level and may create excessive costs. AFMA suggested APRA consider a phased implementation and engaging at the conceptual stage rather than draft stage.
|
Regulation |
APRA |
| 21-Oct-2022 |
AFMA welcomed ASIC's initiative in addressing challenges experienced with the reportable situations regime implementation aiming to better achieve the regime's objectives. AFMA provided guidance in its submission on a range of issues addressed in the consultation including calculations of instances, frequency of lodging, reporting information as well as certain definitions and interpretations.
|
Regulation |
ASIC |
| 14-Oct-2022 |
AFMA highlighted its concern about unintended consequences of the Your Future, Your Super (YFYS) measures specifically impairing trading in AUD denominated inflation linked bonds. The fact that the Performance Test to measure fixed income products in Australia does not include inflation linked bonds, any existing or future inflation linked bond investment is therefore off index and subject to tracking error.
|
Regulation |
Treasury |
| 12-Oct-2022 |
AFMA's submission highlighted that, as previously mentioned in the AEMC's earlier consultation, the market would prefer any increase to the Administered Price Cap to be a permanent amendment.
|
Regulation |
AEMC |
| 10-Oct-2022 |
AFMA agrees that with recent unprecedented electricity and gas market disruptions, the need to review all energy parameters is clear. There is a need to consider how effectively administered market states operate during these periods of stress. AFMA notes the review should consider the interaction between the NEM and the gas market and look to learn from the period of administered pricing which applied recently.
|
Regulation |
AEMO |
| 10-Oct-2022 |
AFMA expressed reservations regarding the potential impact of the proposed reforms on the energy market and the proposed information powers. These two issues are addressed further in the submission regarding the sharing of protected information with ministers and the scope of AEMO to trade in natural gas.
|
Regulation |
Energy Ministers |
| 07-Oct-2022 |
AFMA noted that our positioning on both Bills is unchanged since similar Bills were last introduced to Parliament in 2021. AFMA reaffirmed its opposition to the introduction of measures putting employees who were accountable persons at risk of heavy penalties where there was no intent, opposing extension of the CSLR regime to Managed Investment Schemes (MISs) and noting the already strong penalty regime for individuals in the FAR Bill.
|
Regulation |
Senate Economic Committee |
| 07-Oct-2022 |
AFMA's submission requested further clarity specifically in the entity metric calculation for firms/persons in the securities dealer sub-sector. The total value of securities metric should be restricted to those trades relating to retail clients aligning the metric with other sub-sector definitions for example the credit intermediaries and licence personal advice sub-sectors.
|
Regulation |
Treasury |
| 07-Oct-2022 |
AFMA's submission sought confirmation on a range of updates highlighted throughout the Rules including additional responsibilities prescribed for foreign accountable entities regarding senior executives, exclusion of subsidiaries for foreign accountable entities as well as a suggestion of extension to 12 to 18 months on the commencement date.
|
Regulation |
Treasury |
| 28-Sep-2022 |
AFMA sees the action taken by APRA during the COVID-19 pandemic as appropriate considering at certain times it may be prudent to raise contingent liquidity requirements when markets become volatile and liquidity is strained. AFMA's members welcome APRA's decision to return the level of contingent liquidity MLH ADIs are expected to hold to at least 10% of an ADI's total deposits and short-term wholesale liabilities.
|
Regulation |
APRA |
| 26-Sep-2022 |
AFMA supports the review of Australian Carbon Credit Units (ACCUs). Our submission highlights issues relevant to the financial market including the regulation of ACCUs as financial products.
|
Regulation |
Independent Panel |
| 26-Sep-2022 |
AFMA welcomed the Review's proposals for reform understanding that many of the proposals can be developed into a more efficient and workable framework if developed further. However, the submission expressed caution on some of the key reforms including the proposed scope of what is 'personal advice'.
|
Regulation |
Treasury |
| 20-Sep-2022 |
AFMA supports the creation of Safeguard Mechanism Credits and considers they can play an important role meeting Australia’s climate goals. Our submission focusing on how to ensure their design promotes a healthy market
|
Regulation |
DCCEEW |
| 20-Sep-2022 |
AFMA's submission highlights a technical issue that is evident through engagement with the ATO, to provide data related implications if the issue remains unresolved and proposing potential solutions that provide clarity. The submission delves into further detail surrounding the issue, highlights the Board of Taxation Review along with the practical effect of the ATO applying its technical view and sets out the AFMA proposal to rectify the issue.
|
Taxation |
Treasury |
| 20-Sep-2022 |
AFMA expressed support of the ALRC's recommendations in Interim Report A. The recommended amendments set out a sensible initial path to simplify and improve the navigability and clarity of corporate laws which AFMA agrees with specifically regarding definitions and references. AFMA has reviewed this legislation and provide no technical comment whilst agreeing with the suggestions to be introduced to Parliament as soon as possible.
|
Regulation |
Treasury |
| 20-Sep-2022 |
AFMA noted its long-term support for a proper hierarchy of law for Australian financial service and corporate law including its comment to the Australian Law Reform Commission. Removing these notional amendments out of ASIC made legislation in the proposed measures package is a welcome development. AFMA advocated their agreement with the package of measures.
|
Regulation |
Treasury |
| 16-Sep-2022 |
AFMA commended the proposals by Treasury and provided suggestions with specific changes to continue the path to comprehensive reform. AFMA supports amendments to the Experience and Education pathways and detail further development of both throughout the submission. Further detail was provided on the value in unwinding FASEA's merging of the provision of product-specific advice with financial planning.
|
Regulation |
Treasury |
| 13-Sep-2022 |
AFMA noted its agreement with the NZX that boards of issuers play a critical role determining what is in the best interest of the entity when it comes to raising equity capital whilst also reaffirming that they should have flexibility to use various means of capital raising structure.
|
Regulation |
NZX |
| 06-Sep-2022 |
AFMA stated that the more frequent publication of the CPI on a monthly basis is broadly supported by AFMA's members as it will contribute to more effective hedging and the trading of interest rate and inflation linked products thus facilitating more efficient transmission of monetary policy through the economy. This change to monthly publication will consistently align Australia's publication timelines with every economy in the G20.
|
Regulation |
ABS |
| 02-Sep-2022 |
AFMA supports further development of the Australian market executed through continual innovation and an improved offering to investors with AFMA understanding there are complexities given the innovative nature of the proposals which will likely be addressed through ongoing dialogue with the industry. AFMA also seeks to understand more around how participants can satisfy their MIR AOP requirements and request further information on the completion of regulatory data fields Origin of Order and Intermediary ID.
|
Regulation |
Cboe |
| 02-Sep-2022 |
AFMA's submission detailed feedback on several issues including proposed MNE Interest Limitation Rules, Denying MNE's deductions for payments relating to Intangibles/Royalties paid to low or no tax jurisdictions, Multinational Tax Transparency, Alignment with EU public CbC Reporting Requirements and Mandatory reporting of Material Tax Risk to shareholders.
|
Taxation |
Treasury |
| 01-Sep-2022 |
AFMA supports increasing APC to ensure the electricity market can operate during periods of administered pricing. Our submission highlighted the likely impacts on the financial market of making the change with a short implementation period.
|
Regulation |
AEMC |
| 25-Aug-2022 |
AFMA welcomed the review following prior statements detailing opportunities for the Australian Government to streamline the investment framework that applies to foreign-owned firms. The suggestions within the submission centre around certain notification requirements being repealed due to duplication or other requirements being aligned with shareholder disclosure requirements under the corporations act to ease the regulatory burden on members whilst ensuring there is meaningful disclosures in place.
|
Regulation |
ACMA |
| 25-Aug-2022 |
AFMA and the Australian Energy Council made a joint submission. The submission focuses on the need to clearly understand the purpose of the information collection and points out potential implementation issues.
|
Regulation |
Energy Ministers |
| 23-Aug-2022 |
AFMA supports ASX's review of their practices regarding outages in the context of changed regulator expectations. AFMA noted that the second consultation scheduled for September will provide a more comprehensive forum for substantial changes. The feedback provided centred around trade and order statuses, session states, intraday cut-offs and checkpoint times, incident communications and dependencies.
|
Regulation |
ASX |
| 21-Aug-2022 |
AFMA recognised ASX's intention in relation to the change in order to make adjustments to contracts to improve the market. However, the sudden nature of the change has caused for some market concern. Members suggest that a consultation process along with more transparency on the metrics that were used to measure market liquidity would provide a smoother transition in improving the derivatives market.
|
Regulation |
ASX |
| 12-Aug-2022 |
AFMA announced its support for the proposed amendments which will update the Rules to reflect the new message format under ISO 20022. AFMA expressed concern with Proposed Rule 16.6 requesting confirmation on regulatory expectations on incoming messages and the inclusion of TFN's. AFMA noted their agreement with proposed Rule 16.4 yet seeked confirmation as to whether AUSTRAC is planning to release changes to support reporting of additional information contained in the MX message.
|
Regulation |
AUSTRAC |
| 29-Jul-2022 |
AFMA responded supporting the general objective for standards as they provide a comprehensive global baseline of sustainability-related disclosures to meet information needs of investors. AFMA noted the need for more rigorous data collection as well as a phased approach to adoption across entity types. Structured transition periods will be required for a range of specific clearly defined and bounded disclosures.
|
Regulation |
ISSB |
| 29-Jul-2022 |
AFMA’s submission agreed that careful reform of the National Electricity Market is required to ensure the reliable supply of electricity and a functioning electricity market during the transition to lower emissions. AFMA’s submission focused on the importance of preserving the spot price as the key market signal and that a capacity mechanism should be designed to preserve this role.
|
Regulation |
ESB |
| 18-Jul-2022 |
AFMA was a participant in the ‘Australian Voice’ ISSB Exposure Draft submission to the ISSB and AASB, representing 20 Australian financial service industry bodies in consultation with the Council of Financial Regulators. The submission supports the general objective of establishing a global standard which would be adopted by Australia through local rules. Key points were made on the Comprehensive Global Baseline, the Climate First Approach, Scalable and Practical Implementation, Assurance and Domestic Implementation Considerations
|
Regulation |
ISSB |
| 15-Jul-2022 |
AFMA wrote in support of ASIC's proposal as the extended relief from ASX 24 futures products quoted in NZD to NZD denominated OTC clearing products was noted as a logical and helpful development. The proposed extension would support closer economic ties with New Zealand by appropriate recognition of the equivalence of the bank regulation arrangements and the close connectivity of the two financial systems.
|
Regulation |
ASIC |
| 13-Jul-2022 |
AFMA referred back to its February 2020 submission in which the removal of the exemption from the stamping fee ban was firmly opposed. AFMA's concern for the future of the sector was largely validated by the events since the ban was implemented. Access and choice for retail investors to quality asset managers has been reduced by this policy decision while investment options in the sector have become more limited.
|
Regulation |
Treasury |
| 08-Jul-2022 |
AFMA's feedback was divided into qualitative assessments from the perspectives of Issuers, Investors, Traders and Syndicates. Key issues were identified more specifically for Traders and Syndicates as the effects of the pandemic had a greater impact on their activities.
|
Regulation |
IOSCO |
| 08-Jul-2022 |
AFMA lodged a submission with ISDA and the GFMA predominantly centred around global harmonisation of standards. The submission requested that ASIC and other regulators communicate by harmonising reporting standards and implementation timelines before the finalisation of reporting rules.
|
Regulation |
ASIC |
| 06-Jul-2022 |
AFMA's submission supported the amendments to the ASX 24 Operating Rules to cater for the use of a fallback rate. However, AFMA indicated that the Operating Rules need to provide more significant clarity and certainty rather than leaving the matter to be determined at the time by ASX through consultation with participants. AFMA suggested that the eventual appropriate alternative to BBSW should find its derivation in AONIA as it is the official risk free rate in Australia.
|
Regulation |
ASX |
| 30-Jun-2022 |
AFMA's submission supported the Government's holistic approach to data regulation. AFMA agreed that it is timely for this Strategy to be developed and provided feedback on maximising the value of data indicating that there is a need for a more principled approach to data ownership, stewardship and custodianship. Increased international consistency of data security requirements was also promoted. AFMA noted that the setting and processes associated with data management are not yet optimised and there is scope for more efficient industry-based approaches to data standards.
|
Regulation |
DPMC |
| 29-Jun-2022 |
AFMA's submission provided feedback predominantly relating to the issue of a reasonable expectation for required lead time for major and minor reporting changes. AFMA noted several variables including the fact that changes need to be fully costed and budgets approved, data validation for internal and external audit processes must be satisfied, and finalised reporting protocols must be affirmed before changes to Group IT systems can be proposed. AFMA indicated implementation can range up to two years for major reporting changes and one year for minor changes.
|
Regulation |
APRA |
| 28-Jun-2022 |
AFMA's submission reiterated the longstanding policy position that the ASIC Cost Recovery model is flawed. AFMA insisted that the Cost Recovery Model should recognise the mix of private and public benefits flowing from regulation with a mix of cost recovery and public funding through the Federal Budget. AFMA indicated that partial cost recovery implemented with government funding can strike a better balance with significant public benefits from regulation. The suggestion of a redesign of the charging system will allow challenges that currently arise to business to be addressed directly.
|
Regulation |
ASIC |
| 28-Jun-2022 |
AFMA's submission was supportive of a balance between enhanced requirements without significant burden whilst keeping investors well informed. AFMA noted the importance of maintaining retail protections whilst being in agreement with the proposed revisions to the framework.
|
Regulation |
ASX |
| 24-Jun-2022 |
AFMA's submission commended the Government for issuing the discussion paper and sought a nationally coordinated approach due to the current inconsistencies and overlapping requirements in regulation, none of which are aligned to the best international standards. AFMA urged a co-operative approach to data security, avoiding a punitive approach where business and Government are working in conjunction with one another.
|
Regulation |
Home Affairs |
| 23-Jun-2022 |
AFMA's submission expressed significant concerns around Report 708 relating to the need for a full understanding of the difficulties faced from the proposed requirements, the need for regulatory requirements to be bounded by law and the lack of economic efficiency in the 708 requirements.
|
Regulation |
ASIC |
| 16-Jun-2022 |
AFMA provided a joint submission with ISDA requesting that APRA exercise its supervisory powers relating to CPS 226 in a risk-based manner for a period of at least 18 months. The submission also dissected issues on the application of APRA Prudential Standard APS 112 to eligible netting agreements and legal opinions as well as identification of relevant PRC counterparties that are impacted by CPS 226.
|
Regulation |
APRA |
| 10-Jun-2022 |
AFMA's submission focused on initiatives to enhance the efficiency and competitiveness of electricity financial markets and expressed concern relating to the potential detrimental effects of the ESB's proposals on market liquidity.
|
Regulation |
ESB |
| 08-Jun-2022 |
AFMA's submission expressed concern about the continued increase of potentially divergent information security standards. To ensure efficient application, firms should be given greater discretion to apply materiality thresholds to matters, particularly in relation to Critical Business Services.
|
Regulation |
ASIC |
| 03-Jun-2022 |
AFMA supported the objective of better aligning accreditation requirements with industry standards. Specifically, AFMA supported a rebuild of the regulatory structures, a framework for scaled advice and digital advice, a clear demarcation of general advice from personal advice as well as clear limits on the scope of information the advice-giver needs to consider when an investor limits advice to general advice.
|
Regulation |
Treasury |
| 27-May-2022 |
AFMA's submission supported the Government's intent to appropriately regulate crypto-assets and supported a continued focus on developing these regulations given the increasing investor activity in these markets. AFMA's fundamental position is that crypto-assets present the same or higher risks as current financial products and the existing flexible framework of the financial regulatory infrastructure should be utilised for such assets, with some extensions to address the additional risk posed by crypto-assets.
|
Regulation |
Treasury |
| 27-May-2022 |
AFMA expressed concern that the proposed constraints on allocation policies of issuers on pro rata issues and additional upfront disclosure obligations may not promote efficiency in the capital markets. AFMA is of the view that the current regime provides the appropriate balance and that the proposed changes would be detrimental to an issuer's ability to raise equity capital by increasing the cost of capital and imposing an unnecessary constraint on Issuers to respond to an evolving operating environment.
|
Regulation |
ASX |
| 23-May-2022 |
AFMA's submission was supportive of IOSCO's intentions to better understand the evolution of retail trading; however, AFMA expressed concerns that the report presents an unwarranted perspective on the evolution of the market, not giving appropriate weight to benefits that have accumulated alongside matters of regulatory interest. AFMA noted that retail investor activities support businesses raising capital over the long term.
|
Regulation |
IOSCO |
| 17-May-2022 |
AFMA's submission referred to the response to APRA's Post-implemetation review of the Basel III liquidity ratios in Australia, noting that the branches of foreign ADIs will be excluded from the definition of a "significant financial institution." This exclusion suggests that foreign branches reduce the systemic risk in the Australian context due to foreign ADI constraints by the LCR and NSFR requirements. On this basis, AFMA proposes APRA considers further extending the application of its SFI definition across a wider range of Prudential Standards particularly those relating to Basel III liquidity ratios.
|
Regulation |
APRA |
| 29-Apr-2022 |
AFMA acknowledged the policy objective of strengthening crisis preparedness through providing entities with regulatory certainty but also expressed concern with the standards development process. AFMA does not believe that the financial contingency planning requirements for branches are meaningful given branches do not have standalone capital requirements. The submission also addresses thoughts on Framework Design, Financial Contingency Planning and Resolution Planning.
|
Regulation |
APRA |
| 29-Apr-2022 |
AFMA wrote to Treasury providing feedback on the current ASIC Industry Funding Model stating it is inefficient, complex and distortionary. AFMA highlighted how market participants are adversely impacted by the volatility and inefficiency of the charges through several business channels. The submission supports a fundamental rethink of the ASIC Industry Funding Model and highlights the need to seek more efficient ways for the Government to collect the revenue currently collected under the current model.
|
Regulation |
Treasury |
| 26-Apr-2022 |
AFMA's submission supported the ASX proposal to implement fallback rate provisions for the BBSW and BKBM benchmark rates set out in the 2021 ISDA Definitions effective 27 June 2022 and treating all cleared transactions, including legacy trades, as if they incorporated the relevant fallback provisions contained within the 2021 ISDA Definitions. AFMA noted this approach is consistent with other global jurisdictions. The submission also supported the addition to the ASX OTC Handbook of the Actual/Actual ICMA Day Count Convention and implementation of the AUD IMM roll convention.
|
Regulation |
ASX |
| 14-Apr-2022 |
AFMA made a submission particularly regarding the performance and usefulness of the Liquidity Coverage Ratio (LCR) and whether there are any areas for improvement. The submission noted that while an important tool to protect financial systems globally, the LCR has costs in the Australian context associated with the optimisation of ADI’s lending performance. Cash which otherwise would be on-lent to retail and commercial clients is employed in low yield HQLA1. The submission stated suggestions for improvement such as recognition of a broader class of HQLA1 assets and HQLA2 assets, the potential to only apply the LCR and Net Stable Funding Ratio (NSFR) to designated significant financial institutions and reforms to enhance Australia’s competitive position in global markets.
|
Regulation |
APRA |
| 14-Apr-2022 |
AFMA's submission stated its support for ASX’s review of listing pricing as appropriate given the significant changes that will accompany the CHESS replacement. The submission noted that AFMA does not involve itself in commercial matters except to highlight matters of common market interest, and as such sought clarity on what effect the proposed changes suggested by ASX modelling will have on Holder Identification Numbers (HINs) for individual investors and costs for those investors.
|
Regulation |
ASX |
| 14-Apr-2022 |
AFMA's submission welcomed the Draft Guidance as it would provide a useful reference point for reporting entities.The submission sought clarity on the scope of the requirements articulated in the Draft Guidance and highlighted concerns relating to the consistency of the Draft Guidance with AUSTRAC Guidance on Debanking, expectations for establishing source of Funds/Wealth and need for the Draft Guidance to acknowledge that reporting entities are required to abide by the Australian Privacy Principles in verifying the source of funds/wealth. The submission also suggested that the Draft Guidance could be enhanced through the inclusion of specific legal references to the obligations articulated in it.
|
Regulation |
AUSTRAC |
| 04-Apr-2022 |
AFMA made a submission generally welcoming the ASX’s proposed changes to ASX Recovery Rules and Handbook based on the objective to mitigate unintended consequences for clearing participants. AFMA's comments highlighted important matters around increased transparency and fairness for ASX’s consideration before the proposals are executed. These included among other matters, the ASX At-Risk Capital Commitment, clarity on loss allocation determination and components and mitigation of wrong way risk when a settlement bank and a clearing participant are in the same group.
|
Regulation |
ASX |
| 04-Apr-2022 |
AFMA made a submission to AUSTRAC stating its perspectives in relation to the Draft Regulatory Guide. The submission noted based on the positions adopted in the Draft Regulatory Guide, that the legal interpretations adopted by AUSTRAC maydiffer to those taken by reporting entities and thus there is a need to better understand the legal position adopted by AUSTRAC and to ensure that any guidance on reportability is based on a current legal obligation rather than the intelligence value that would be obtained through the report. The submission seeks an approprite transition period for members to adhere to new regulatory expectations.
|
Regulation |
AUSTRAC |
| 24-Mar-2022 |
AFMA wrote to APRA alerting it to the Treasury Laws Amendment (Streamlining and Improving Economic Outcomes for Australians) Bill 2022, which if passed and made a law, contains a proposed new professional investor exemption replacing a current professional investor exemption. The current exemption under s 911A(2E) of the Corporations Act 2001, only applies in limited circumstances to persons ‘not in this jurisdiction’ and gives effect to APRA's Guidelines that overseas banks are able to carry on a cross-border banking business in Australia without holding a banking licence from APRA or an AFS licence from ASIC. AFMA's letter sought confirmation that APRA will not take any action against an overseas bank under s 66 of the Banking Act for using or assuming its own name in any notifications to an existing or prospective client or regulator provided that fulfills conditions from the Guidelines.
|
Regulation |
APRA |
| 25-Feb-2022 |
AFMA's submission noted general support to the recommendations made in Report A based on the analysis and justifications around the problems with the Corporations Act 2001 and related financial services legislation as ‘law’. AFMA’s central concern with Report A was that the proposals could be taken forward as law reform measures in isolation which will have significant policy implications and affects other parts of the way the law works. AFMA hence noted there is a need to take the proposals forward as policy review issues.
|
Regulation |
ALRC |
| 25-Feb-2022 |
AFMA made a submission noting its general support for the proposed changes. The submission stated concerns in regard to the drafting of the foreign custodian corporations exemption amendment as it narrows the availability of the exemption available for foreign custodians and adds to the regulatory burden for some less sensitive types of investment, thus in conflict to the purpose of the ammendments. The submission also sought clarifications around several matters inclduing for example, moneylending exemption, unit holdings, rights issue exemption.
|
Regulation |
Treasury |
| 14-Feb-2022 |
AFMA made a submission highlighting its support for the establishment of the Financial Regulator Assessment Authority. The submission notes that in the same way the Australian community expects regulated financial entities to meet high standards of behaviour, accountability and efficiency, so too must regulators like ASIC meet such expectations and there should be effective checks and balances in the system to ensure this outcome.
|
Regulation |
Financial Regulator Assessment Authority |
| 01-Feb-2022 |
AFMA's submission welcomed Treasury's new proposed pathways for Financial Advisers as they greatly increase the flexibility of the system to better reflect the wide variety of roles that involve financial advice. AFMA welcomed the proposed policy that recognises the skill and knowledge of experienced advisers and recognises the tertiary qualifications from relevant study areas that will equip advisers with skills and knowledge to provide advice on financial markets products.
|
Regulation |
Treasury |
| 01-Feb-2022 |
AFMA’s pre-budget submission supported the advancement of policies that attract the undertaking of mobile financial centre business from Australia. The specific recommendations included in the submission all represent opportunities to enhance the competitiveness of Australia’s financial sector and build on initiatives that have been supported by successive governments on a bipartisan basis.
|
Taxation |
Budget Policy Division, Department of the Treasury |
| 31-Jan-2022 |
AFMA's submission was supportive of ASX's efforts to simplify the ETR calculation and using a single calculation across all ETO series. AFMA supported the ability for market participants to have visibility of the reference price used by ASX in their calculation when cancelling a trade in the interest of market transparency. Based on member feedback, the submission welcomed the 6-week notice period as sufficient from the implementation date as the required systems changes will be limited.
|
Regulation |
ASX |
| 31-Jan-2022 |
AFMA's submission supported the proposed ETR amendment for the Base Load Electricity Cap products. AFMA agreed that valid market transactions should not unintentionally fall in to the ETR cancellation range when the price for Australian Electricity Base Load Cap futures is low. This would also support efficient and liquid markets.
|
Regulation |
ASX |
| 31-Jan-2022 |
AFMA made a submission outlining ongoing concerns with both the policy and design of the AUSTRAC Industry Contribution Model ('Model'). AFMA expressed concerns around the non-applicability of the Government’s own cost recovery guidelines to the AUSTRAC Model and noted that volatility in the Industry Contribution amount is inappropriate. AFMA supported that contributions and maximum billable payments should be determined on an economic group basis and be the same irrespective of the number of reporting entities within the economic group.
|
Regulation |
AUSTRAC |
| 24-Jan-2022 |
AFMA made a joint submission with ISDA welcoming ASIC’s statement that it continues to monitor international regulatory developments to maintain overall consistency. The submission encourages ASIC to consider the potential benefits of aligning its proposed termination date ranges for OIS referencing new RFRs with those of the home jurisdictions (and other relevant jurisdictions) of the underlying RFRs. The submission also noted concerns for financial stability around implementation timing of the proposed amendments to Clearing Rules.
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Regulation |
ASIC |
| 12-Jan-2022 |
AFMA made a submission noting it welcomed the Bill as drafted and considered it sound. The submission focused on the legislative text of the Bill. AFMA mentioned primary concerns with implementation issues and queries on how ASIC will interpret the law and timelines for transition and implementation and expressed interest to understand how additional comparable jurisdictions will be added to the list, noting that these matters are important in practice.
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Regulation |
Treasury |
| 10-Jan-2022 |
AFMA's submission outlined comments on several proposals of the Review such as Personal Information, Employee record exemption, etc. noting concerns around increased complexity, seeking further clarity and recommending alternative approaches. Where extensions to the current regime are made AFMA cautioned they should be aligned with standard practices elsewhere, where those practices have proved to work well and are compatible with Australian values and policies.
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Regulation |
Attorney-General’s Department |