ASIC overview December - March 2012 - Consumers' Federation of Australia

ASIC’s enforcement policy:

On 20 February 2012, ASIC released policy documents on how it will undertake investigations and enforcement activity: see ASIC releases policy on enforcement and investigations

Consumer information/alerts:

On 9 January 2012, ASIC announced it has a new budget planner to help consumers plan for 2012: see Get a MoneySmart start to 2012
On 24 November 2012, ASIC urged consumers to properly understand the conditions and risks of hybrid securities and unsecured notes before committing their money: see ASIC warns consumers about hybrid securities and notes
On 20 January 2012, ASIC advised clients of online stockbroking firms to urgently review their account security: see Online trading account security breaches
On 8 February 2012, ASIC announced measures to help ensure issuers of debt products such as debentures and notes provide investors and financial consumers with the information they need to make informed decisions about investing in these products and updated information on MoneySmart: see ASIC warns about secured debt products
On 5 March 2012, ASIC announced MoneySmart’s new debt clock and credit card calculator, and called on consumers to see how much money they can save by paying off more than the bare minimum: see Clock is ticking on credit card debt
On 6 March 2012, ASIC announced that people who migrated to Australia on humanitarian grounds now have access to multilingual resources to help them learn about Australia’s financial system: see ASIC launches multilingual financial resources

Advertising/disclosure:

On 24 January 2012, ASIC released new disclosure benchmarks and principles for infrastructure entities to improve investor awareness of the risks associated with investing in these products: see ASIC improves disclosure by infrastructure entities
On 30 January 2012, ASIC released an investor guide and regulatory guidance with new disclosure benchmarks and principles for agribusiness managed investment schemes to improve investor awareness of the risks associated with these products: see ASIC releases investor guide and disclosure guidance for agribusiness schemes
On 14 February 2012, ASIC released guidance to help promoters comply with their legal obligations when advertising financial products and services.RG 234 Advertising financial products and advice services: Good practice guidance (RG 234) builds on ASIC’s focus to promote confident and informed investors and financial consumers: see ASIC releases guidance on advertising
On 23 February 2012, ASIC released for consultation draft regulatory guidance with new disclosure benchmarks and principles for hedge funds to improve investor awareness of the risks associated with these products. Comments on the consultation paper are due by 19 April 2012: see ASIC releases draft disclosure guidance for hedge funds

New subscribers to the e-payments code:

Select Credit Union Pty Ltd (an ADI): see ASIC welcomes ePayments code subscriber

Financial advisers:

On 7 December 2011, ASIC announced its review of the next 30 largest financial advise firms: see ASIC begins second phase of review of financial advice industry practice.
On 13 December 2011, ASIC announced its plans to release regulatory guidance to implement the FoFA reforms: see ASIC’s plans for FoFA reforms
On 22 December 2011, ASIC announced EUs entered into with three financial advisers formerly employed by Storm Financial Ltd: see ASIC accepts enforceable undertakings from financial advisers
On 10 January 2012, ASIC announced an EU with a former Commonwealth Financial Planning adviser: see ASIC accepts enforceable undertaking from former Commonwealth Financial Planning adviser

Financial counsellors:

On 15 December 2011, ASIC released its conditional class order, granting relief to financial counsellors and money management services providers from having to hold a credit or AFS licence: see ASIC grants exemptions for rural financial counselling and money management service providers

Corporate governance/shareholders/market supervision:

On 21 December 2011, ASIC announced the results of its review of financial reports for the year ended 30 June 2011 and ASIC’s areas of focus: see Improved financial information for investors and others
On 7 February 2012, ASIC released its 3^rd report on the supervision of Australian financial markets and market participants: see ASIC releases third market supervision report
On 16 February 2012, ASIC outlined the circumstances under which relief will be given to investment funds from the prohibition against indirect self-acquisitions (i.e. where shares in a company are issued or transferred to an entity it controls) in new Regulatory Guide 233 Indirect self-acquisition: Relief for investment funds: see ASIC releases policy on indirect self-acquisitions
On 29 February 2012, ASIC called on companies to improve the disclosure of their remuneration arrangements for directors and executives. This followed a review of 50 remuneration reports – drawn from 300 of Australia’s biggest companies – for the year ended 30 June 2011: see ASIC calls for better executive remuneration disclosure (media release includes an attachment)

Deposit takers and credit:

On 1 December 2011, Westpac Banking Corporation agreed to review its marketing of geared investment strategies using the phrase ‘stress-free’ following ASIC concerns that the description could be misleading, or likely to mislead: see Westpac reviews use of ‘stress-free’ in response to ASIC’s concerns
On 22 December 2011, ASIC released updated regulatory guidance on how credit licensees can ensure that they have organisational competence and their representatives are appropriately trained: see ASIC releases revised policy on home loan credit assistance
On 12 January 2012, the Commonwealth Bank of Australia agreed to change advertised comparison rates for its Wealth Package loans in response to ASIC concerns the rates used in ads were incorrect and potentially misleading: see CBA to change Wealth Package loan comparison rates
On 8 February 2012, the Federal Court of Australia found Australian Lending Centre Pty Ltd and Sydney Lending Centre Pty Ltd – two Sydney finance broking companies that brokered business loans for borrowers seeking personal loans had engaged in unconscionable and misleading conduct: see Federal Court finds loan brokers engaged in unconscionable conduct
On 24 February 2012, American Express Australia Limited agreed to change its approach to the charging of a higher ‘default’ rate of interest to credit card customers who have defaulted in their payment obligations: see American Express agrees to change credit card interest rate policy for defaulting cardholders
On 7 March 2012, ASIC announced it has accepted a court enforceable EU from Commonwealth Bank of Australia following concerns that a message sent to its internet banking customers was misleading. The message sought customers’ consent to receive credit card limit increase invitations: see ASIC accepts enforceable undertaking from Commonwealth Bank