Compliance Toolkit

Simpler Regulatory System Act commences

The Corporations Legislation Amendment (Simpler Regulatory System) Act 2007 received Royal Assent on 28 June 2007.

Here is the updated Corporations Act incorporating the Simpler Regulatory System Act changes.

The Regulations to implement the Act are:

• Corporations Amendment Regulations 2007 (No. 2)
• Corporations Amendment Regulations 2007 (No. 3)
• Corporations Amendment Regulations 2007 (No. 4)
• Corporations Amendment Regulations 2007 (No. 5)
• Corporations Amendment Regulations 2007 (No. 6)
• Corporations Amendment Regulations 2007 (No. 7)
• Corporations Amendment Regulations 2007 (No. 8)

Do Not Call Register essentials

The Do Not Call Register is expected to commence on 31 May 2007. It will be administered by ACMA.

The package of laws, regulations and standards consists of:

• the Do Not Call Register Act 2006 (Cth);  
• the Do Not Call Register Regulations 2006 (Cth);   
• the Do Not Call (Consequential Amendments) Act 2006 (Cth);
• Telecommunications (Do Not Call Register) (Telemarketing and Research Calls) Industry Standard 2007.

FSR Compensation

ASIC has announced a new class order [CO 06/1012] extending the transitional compensation arrangements under s912B of the Corporations Act 2001 from 1 January 2007 to until 30 June 2007.

The Government plans to finalise the compensation regulations during the next six months, including any further transition period.

Background

Arranging loans in Western Australia

The Finance Brokers Control Act (WA) regulates the arranging or negotiating of loans in that State. Persons who carry on that business in WA must be licensed by the Department of Consumer and Employment Protection (DOCEP), even if those loans are not regulated by the Consumer Credit Code.

Recent amendments permit non-WA residents to obtain a licence and permit the licensing of finance broker businesses whose owners (directors or partners) are not qualified provided a qualified person controls the finance broking operations.

Anti-money laundering implementation

The Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) and the Anti-Money Laundering and Counter-Terrorism Financing (Transitional
Provisions and Consequential Amendments) Act 2006 commenced on 12 December 2006 when it received Royal Assent.

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AML BIlls introduced

The Government has introduced the first tranche of the Anti-money laundering/Counter-terrorism financing (AML/CTF) legislation into Commonwealth Parliament:

• The Anti-Money Laundering and Counter-Terrorism Financing Bill 2006
• The Anti-Money Laundering and Counter-Terrorism Financing (Transitional Provisions and Consequential Measures) Bill 2006

The 282-page AML/CTF bill has staggered operative dates. Specific operative dates include:    

• Identification procedures: 12 months after the bill receives assent.
• Reporting obligations: 24 months after the bill receives assent.
• AML/CTF reports: 6 months after the bill receives assent.
• Cross-border currency transactions: when the bill receives assent.
• Electronic funds transfer instructions: when the bill receives assent.
• AML/CTF programs: 12 months after the bill receives assent.
• Record-keeping requirements: 6 months after the bill receives assent

The Attorney-General's Department AML website

Anti-money laundering update

The Minister for Justice and Customs, Senator the Hon Chris Ellison, has released a revised exposure draft AML/CTF Bill 2006 and draft AML/CTF Rules for a period of three weeks of public consultation from 13 July 2006.

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Company law and corporate governance resources

• Corporations Act 2001
• Corporations Regulations 
• Australian Securities and Investments Commission Act
• CLERP 9 Act
• Financial Services Reform Act 2001
• ASIC
• Australian Prudential Regulation Authority
• Australian Stock Exchange
• Takeovers Panel
• Commonwealth Treasury
• Corporations and Markets Advisory Committee
• Financial Reporting Council
• ASX Principles of Good Corporate Governance and Best Practice Recommendations (pdf)
• HIH Royal Commission Report
• IFSA Blue Book
• OECD Principles of Corporate Governance: 2004
• Australian Council of Super Investors Corporate Governance Guidelines
• AS 8000-2003 : Corporate governance - Good governance principles
• OECD Guidelines for State-Owned Enterprises
• Centre for Corporate Law

Financial services websites marketing and compliance

Providing financial services has high risks: there are high compliance costs and restrictions on new products and services because of changing and uncertain regulatory requirements. Providing financial services over the internet brings additional risks. The law is still not “technology neutral”: some products will be treated differently if they are electronic rather than paper-based.

Failure to comply could have catastrophic consequences: fines, penalties and loss of reputation.

To be successful a financial services website needs inbuilt compliance systems as well as good technology, good design and good products. Compliance systems will help when designing new products or services for a financial services website.

Our 60 page report focusses on processes to assist financial service providers in managing the risks related to websites in an environment of rapidly changing technology. The section on risk management is intended to assist you to identify, quantify and, where possible, reduce related technology risks. See the index (pdf)

The report concludes with 17 Guidelines for financial services websites illustrated by screenshots.

This report has important information for anyone who is responsible for the design or content of a financial services website or involved in compliance of a financial services provider.

We discussed our findings on a web seminar on 14 March 2006.

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What does APRA do?

APRA Chairman John Laker describes APRA's role as prudential regulator of banks, building societies, friendly societies, insurers and superannuation funds in this speech (pdf).