Submissions Banner


Members who would like to obtain copies of AFMA submissions made prior to 2016 can contact the Secretariat Manager at 

Date Title & Summary Topic Area Sent to

Consultation Paper 361 Proposed changes to simplify the ASIC Derivative Transaction Rules (Reporting): Second Consultation

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

Consultation Paper on fallback rate provisions for AU and NZ 90 Day Bank Bill Futures

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

Australian Data Strategy

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

Direction for Data Collections

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

Cost Recovery Implementation Statement: ASIC Industry funding model (2021-22)

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

Enhancing the ASX Investment Products Offering

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

National Data Security Action Plan

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

ASIC Report 708

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

Impact of PRC Financial Derivatives Law on APRA covered entities under APRA Prudential Standard CPS 226

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

Transmission Access Reform

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

Draft Guidance on Technological and Operational Resilience

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

Quality of Advice Review - Issues Paper

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

CASSPrs: Licensing and Custody Requirements

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

Proposed Enhancements to the ASX Listing Rules

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

Retail Market Conduct Taskforce Consultation Report

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

Proportionality and Significant Financial Institutions

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

Strengthening crisis preparedness - Discussion Paper

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

Review of ASIC's Industry Funding Model

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

CHESS Replacement

AFMA made a submission noting its support for the conclusion of the project. AFMA noted the positive announcement of the change of delivery date allowing for the reassessment of project risk and planning. A key concern in the submission was that more detailed information is required from a resourcing perspective to build confidence proving that industry testing will be sufficient. AFMA noted the other significant markets-related projects that may be running simultaneously and sought clarity on issues such as fall back, contingency planning and parallel run.

Regulation ASIC

ASX OTC Interest Rate Derivatives Clearing Consultation: OTC Fallback Rate Provisions and OTC Product Eligibility Enhancements

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

Post-implementation review of the Basel III liquidity ratios in Australia

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

ASX consultation on Issuer Services: New Pricing

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

AUSTRAC Proposed Guidance on Source of Funds and Source of Wealth

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

ASX consultation on the ASX Recovery Rules to allocate US settlement bank investment losses between the ASX CCPs and their clearing participants.

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

Reporting of International Electronic Funds Transfer Instructions - Draft Regulatory Guide

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

Issue Alert - Use of Bank Name in Notifications

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

ALRC Interim Report A - Financial Services Legislation

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

2022 Foreign Investment Reforms - Exposure Draft Regulations

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

First Assessment of the Australian Securities and Investments Commission

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

Education Standards for Financial Advisers – Policy Paper

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

2022/23 Pre-Budget Submission

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

ASX Trade Cancellation Ranges: Proposals for Change to ETO cancellation ranges and QCR process

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

ASX 24 Cancellation Ranges: Proposals for Change to Energy Products and QCR process

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

AUSTRAC Industry Contribution 2021-22 Stakeholder Consultation Paper - AFMA Submission

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

ASIC Consultation Paper 353: Proposed Amendments to theASIC Derivative Transaction Rules (Clearing) 2015

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. 

Regulation ASIC

Treasury Laws Amendment (Measures for Consultation) Bill 2021: Licensing Exemptions for Foreign Financial Service Providers

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. 

Regulation Treasury

Review of the Privacy Act – Discussion Paper

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.

Regulation Attorney-General’s Department

Financial Accountability Regime Bill 2021 and Financial Services Compensation Scheme of Last Resort Levy Bill 2021

AFMA's submission mentioned its general support for the final shape of the Financial Accountability Regime noting the reservations about the competitiveness with our regional peers of the settings around deferral, and other more technical concerns such as with the end-to-end product responsibility requirements. On the Compensation Scheme of Last Resort, AFMA noted the need to ensure the scheme does not grow further to become an onerous burden on industry and avoids creating moral hazards for investors.

Regulation Senate Standing Committee on Economics

Response to ASIC Letter to Market Participants Regarding ASIC Report 708

AFMA submitted a response to ASIC's letter to market participants regarding ASIC Report 708 addressing matters in relation to the expectations noted in the Report and the requirement to report to ASIC by mid-February on how firms have implemented or plan to implement these expectations. The submission supported the goals of improving system resilience while ensuring relevant market dynamics are considered when assessing market outages.

Regulation ASIC

ASX CHESS Replacement Tranche 3 Rules

AFMA made a submission to the ASX seeking clarity and confirmation around several technical matters such as notification processes for when batch settlement are cancelled on a business day and CCP Market Trade Batch Instructions are rescheduled on a net basis. AFMA also sought clarity on terminology changes noting significant impact on client collateral and digital materials for member firms. 

Regulation ASX

WGEA Review of the Workplace Gender Equality Act 2012

AFMA made a submission to the Workplace Gender Equality Agency's Review of the Workplace Gender Equality Act 2012, noting support for the removal of barriers to the participation of women in the workplace and the elimination of discrimination based on gender where it exists around employment matters. AFMA's submission highlighted the need for refined categorisation to enable like-for-like comparison for better data accuracy, consideration of increased worplace flexibility in recent times and need for more administrative efficiencies. 

Regulation Workplace Gender Equality Agency

ASIC Product Design and Distribution Obligations

AFMA lodged a submission to ASIC regarding equity research in terms of the ASIC Product Design. AFMA noted that there is a risk that the research product may be captured when the sell-side analyst changes their recommendation from "sell" or "hold" to "buy" and increases their price target as a result, AFMA believes this is not an intended regime outcome. AFMA also suggested a safe harbour be introduced.

Regulation ASIC

ASIC Consultation Paper 347 Proposed amendments to the prohibition on order incentives in the ASIC market integrity rules

AFMA reviewed ASIC Consultation Paper 347 and has provided support for ASIC's aims in seeking to support good investor outcomes and avoid negative impacts on market quality related to 'payment for order flow'. AFMA also supported the simplification of the concept of 'negative commissions.' 

Regulation ASIC

Exposure draft of the Trusted Digital Identity Bill and related legislative instruments

AFMA responded to the Exposure Draft with support on the expansion of the digital identity system to the private sector that encourages standardised approaches to identity verification. AFMA also reiterated previous commments made from previous submission to the Positions Paper.

Regulation Government

Second Round of Miscellaneous Amendments to Treasury Portfolio Laws 2021

AFMA made a broad submission regarding the proposed amendments to the LIBOR cap and dictated their disagreement with the proposed amendments dictating how AFMA have steadfastly supported the abolition of the cap. AFMA believe the cap has adversely impacted banking competition and that the LIBOR cap should not be replaced with any other capping mechanism based on benchmark rates.

Taxation Treasury

2006 ISDA Definitions and 2021 ISDA Interest Rate Definitions – BBSY Fallback

AFMA made a submission to ISDA in regards to the BBSY fallback to simple AONIA which the AFMA IBOR Market Responses Group agreed on in early 2021. Additionally, information regarding the Credit spread adjustment for transition from BBSY to AONIA was also part of AFMA's submission.

Other ISDA

2021 Unfair Contract Terms Reforms - Treasury Consultation

AFMA reviewed the Treasury Laws Amendment Bill 2021: Unfair Contract Terms Reforms (UCT Bill) and raised concerns in how it may be applied. AFMA believed that the UCT Bill created an area of legal uncertainty  requested a dialogue with the Treasury to discuss potential of prescribing a class of financial markets contracts to address these uncertainties. 

Regulation Treasury

Tax Implications of IBOR Reform

AFMA made a joint submission with the Australian Banking Association and Financial Services Council in response to the ATO discussion paper on tax implications of IBOR reform. A particular focus was on seeking a practical solution for affected entities. 

Taxation ATO

Your Future Your Super - Portfolio Holdings Disclosure

AFMA made a submission to the Treasury consultation on a revised disclosure regime for super funds, that removes the publication of counterparty names and maturity dates. AFMA made a submission supporting the revisions but cautioned that ongoing monitoring to ensure super investors were not disadvantaged was appropriate. We highlighted issues around the potential for options positions in particular to be disadvantaged and proposed removing the requirement for exercise price disclosure.   

Regulation Treasury

AEMC Consultation on Contingency Arrangements for 5MS Implementation

AFMA made a submission to the AEMC consultation on AEMO’s proposed contingency options for a potential delay to the implementation of 5-minute settlement (which as of 1 September 2021 is no longer required following the Market Start Notice indicating readiness for 1 October). AFMA’s submission noted that should a delay be required, an intra-quarter commencement date should be avoided to ensure minimal impact on contracting arrangements. 

Regulation AEMC

Home Affairs - Strengthening Australia’s cyber security regulations and incentives

AFMA made a submission to the Home Affairs consultation considering whether governance arrangements around IT for large firms should be voluntary or mandatory. Our submission proposed that these should be voluntary, noting that ADIs already face extensive regulation of IT Governance through the CPS 234 prudential standard.    

Regulation Home Affairs

The adequacy and efficacy of Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) regime

AFMA lodged a submission to the Senate legal and Constitutional Affairs Committee Inquiry into the Adequacy and Efficacy of Australia’s AML/CTF Regime, encouraging regulation of Tranche 2 entities and improvements to the AUSTRAC Industry Contribution arrangements. 

Regulation Senate Legal and Constitutional Affairs Committee

ASX consultation on amendments to incorporate 2021 ISDA Definitions

AFMA made a brief submission to the ASX consultation on amendments to the ASX Clear (Futures) Operating Rules and Procedures to incorporate the 2021 ISDA Interest Rate Derivatives Definitions and clarify the ownership of cash and securities deposited as margin or commitment.     

Regulation ASX

Single Disciplinary Body for Financial Advisers

AFMA made a submission to the Treasury’s consultation on a Single Disciplinary Body for Financial Advisers: Policy Paper, acknowledging the Government's consideration of initial stakeholder feedback which highlighted concerns around an FSCP convening for large volumes of minor, immaterial and administrative matters, and recommendations for efficient disciplinary processes. We further supported a meaningful scoping of sanctions that should be included on the Financial Advisers Register (FAR) to limit negative effects on financial advisers relative to the gravity of misconduct. 

Regulation Treasury

APRA - ADIs preparedness for zero and negative interest rates

Guidance provided by APRA outlines its expectation that impacted ADIs develop tactical solutions by 30 April 2022, including those which generate an economic outcome that is the same as a negative interest rate. Following consultation with members, AFMA made a submission to APRA seeking guidance on whether it would consider the management of the interest accrual outside of the ADI’s primary loan or deposit modules to be an acceptable short-term tactical solution. 

Regulation Treasury

Treasury Consultation on Compensation Scheme of Last Resort

AFMA responded to the Treasury consultation on the Exposure Draft legislation for the Compensation Scheme of Last Resort. AFMA’s primary concerns are around ensuring that the governance arrangements and incentives are appropriately calibrated to ensure balanced and sustainable outcomes for the scheme, and that to the greatest extent possible firms in sectors with little to no connection to a failed firm are not required to contribute to funding matters connected to the failed firm.  

Regulation Treasury

Financial Accountability Regime – Exposure Draft Legislation

AFMA made a submission  to the Treasury consultation on Exposure Draft legislation to implement the Financial Accountability Regime (FAR), seeking closer alignment with the APRA Remuneration Standard, removal of ancillary liability provisions, and other elements that create unreasonable demands on accountable persons, and a separation of the FAR breach reporting and investigation requirements from the broader breach reporting regime. . 

Regulation Treasury

ASIC Cost Recovery Implementation Statement 2020-21

AFMA made a submission to the latest ASIC Cost Recovery Impact Statement (CRIS) 2020-21. The submission highlighted the underlying issues with ASIC’s industry funding model with insufficient accountability for large variances and overshoots which create a major impediment to doing business in Australian financial markets. 

Regulation ASIC

Treasury consultation on the regulation of foreign financial service providers (FFSPs)

AFMA proposed measures to rationalise the regulation of wholesale financial services involving FFSPs, in order to support efficient access by Australian businesses to the global securities markets.  A key reform is removal of financial services provided by FFSPs to ‘professional investors’ from the scope of the Australian financial services licensing regime.

Regulation Treasury

ASIC CP 342 MIR Amendments

AFMA made a broadly supportive submission to the ASIC consultation on various MIR Tidy ups - CP 342. AFMA’s representations will extend through a side-process ASIC commenced in response to AFMA’s input that is considering client money related streamlining of the requirements.

Regulation ASIC

APRA CPG 229 Climate Change Financial Risks

AFMA made a joint submission with ASIFMA to APRA on Draft Prudential Practice Guide CPG 229 Climate Change Financial Risks, noting that the financial services industry is constantly evolving business structures to achieve various sustainability goals while maintaining commercial viability. We voiced support for rational development of regulatory expectations that are well-attuned to industry capability, outcomes-focused and consistent with emerging global best practices.

Regulation APRA

Treasury Consultation on Relief to Foreign Financial Service Providers

AFMA made a submission to the Treasury consultation on options to replace the Foreign Financial Service Provider (FFSP) licensing regime, highlighting the importance of building on existing arrangements for professional investors to freely access from Australia the services they need from foreign providers in other jurisdictions, to address the problem of extra-territorial overreach by establishing a proper boundary for licensing requirements. 

Regulation Treasury

ASIC CP 343 Crypto-assets as Underlying Assets for ETPs and Other Investment Products

AFMA welcomed ASIC’s principles-based and technology neutral approach to crypto-assets that aims to achieve a sensible balance in an emerging and in some cases, high-risk, area.  We emphasised the importance that the framework for responding to crypto assets is developed in a way that allows for ready adoption of government-backed fiat currencies in CBDC form. 

Regulation ASIC

ASIC CP 344 Remaking class order on when debentures can be called secured notes [CO 12/1482]

AFMA made a brief submission to ASIC to support the remake of the Class Order instrument on when debentures can be called secured notes (CO 12/1482), set to expire in April 2022. We noted that the class order is operating effectively and efficiently, as a valued part of the regulatory framework.

Regulation ASIC

APRA Draft CPG 511 Remuneration

Prior to the release of the finalised Remuneration Standard CPS 511 in August 2021, AFMA responded to APRA's consultation on a draft Prudential Practice Guide (CPG 511 Remuneration).  AFMA commented that Prudential Practice Guide CPG 511 was generally sensible and provided helpful insights into APRA’s expectations around complying with the CPS 511 Remuneration Standard.

Regulation APRA

Digital Identity Legislation Position Paper

AFMA made a submission to the Government's public consultation on Australia’s Digital Identity legislation, voicing support of the development of a whole-of-economy digital identity system that supports innovation, interoperability, consumer choice and is markets-based. 

Regulation Digital Identity Australia

Third Issues Paper - Senate Committee on Australia as a Technology and Financial Centre

AFMA lodged a submission with the Senate Committee into Australia as a Financial and Technology Centre on replacements to the OBU regime, which followed the Government announcement in March that it would repeal the regime based on concerns expressed by the OECD regarding the regime’s 10% concessional tax rate.  130 OECD nations have since agreed to implement a global minimum tax rate of 15%.  Accordingly, AFMA’s proposed “Global Markets Incentive” (GMI) regime recommends a 15% rate to apply to largely institutional transactions not denominated in AUD.

Taxation Senate Committee on Australia as a Technology and Financial Centre

ARS 220.0 Credit Exposures and Provisions: Supplemental feedback

While APRA is proceeding with a phased implementation of the reporting standard ARS 220 as recommended by AFMA in February, the current lack of a firm timeline for the release of the taxonomy is of concern, given APRA expects ADIs to meet a Q2 2023 commencement. AFMA reiterated the importance of the release of this taxonomy and drew attention to potential overlaps and inconsistencies of the reporting standard with respect to accounting standards and Pillar 3 reporting.

Regulation APRA

APS 111 Capital Adequacy: Measurement of Capital

The draft revision of APS111 provided for the standard to apply to foreign ADIs in circumstances where APRA is not satisfied an entity is subject to capital adequacy standards in its home country that are comparable to those that apply in Australia to a domestic ADI. AFMA's submission sought clarity on whether foreign ADIs would need to demonstrate equivalent capital adequacy standards for the purposes of substituted compliance.

Regulation APRA

Energy Security Board Post-2025 Market Design Options Paper

AFMA made a submission to the ESB Options Paper consulting on market design options prior to final recommendations being made to Ministers in mid-2021. AFMA’s submission centred on contract market implications of the proposed changes to transmission access and advocated for further analysis and industry consultation to be undertaken prior to any options being developed further.

Regulation Energy Security Board

CP340 Guidance on Breach Reporting and Related Obligations

AFMA made a submission to ASIC’s consultation CP340 on breach reporting guidance that seeks to implement the related regulations, focusing comments on the carve out for ASIC Market Integrity Rules and Derivatives Trading Rules from ‘deemed significance’ provisions related to the reporting of core obligations breaches.

Regulation ASIC

Greater Transparency of Proxy Advisers Consultation

AFMA made a submission to Treasury to seek clarity and confirmation that any proposed proxy adviser regulation does not extend to independent sell-side research published by investment banks, given that sell-side research is sufficiently regulated through ASIC RG 264 and 79.

Regulation Treasury

Phase 1.5 Rules

AFMA made a submission to AUSTRAC regarding proposed Rules to support the Phase 1.5 reforms of the AML/CTF regime, which tightened up correspondent banking due diligence requirements and enhanced the reliance provisions and the ability to share information. Our submission sought to ensure the Rules reflect both regulatory expectations and reporting entities’ understanding of the new requirements.

Regulation AUSTRAC

Draft Critical Infrastructure Asset Definition Rules

AFMA made a submission to draft rules under the enhanced regulatory framework for critical infrastructure, supporting further engagement with industry to refine the definition of critical assets, particularly banking and financial markets infrastructure assets. Our submission also highlighted the complex interaction between the critical infrastructure regime and the FIRB framework.

Regulation Home Affairs

VEU Program Stakeholder Engagement

AFMA sent a letter to the Victorian Department of Environment, Land, Water & Planning to outline concerns around fragmentation of market communications for the Victorian Energy Upgrades Program and suggest improvements to stakeholder engagement.

Regulation Department of Environment, Land Water & Planning & Essential Services Commission

Consultations on Modernising Business Registers (Director Identification Number Regime)

AFMA made a submission to a Treasury consultation on legislative instruments related to the introduction of the Director Identification Number regime, outlining issues for directors of registered foreign companies that were not considered in the design of the regime that require clarification or modification.

Regulation Treasury

Draft Amendments to Breach Reporting Regulations

AFMA made a submission in regard to draft breach reporting regulations that implement the new breach reporting rules in Schedule 11 of the Financial Sector Reform Act 2020. The submission focussed on proposed changes that would result in market integrity rules being incorporated as ‘core obligations’.

Regulation Treasury

Revisions to the capital framework for Authorised Deposit-taking Institutions

AFMA made a submission in relation to APRA’s proposed revisions to the ADI Capital Framework, seeking concessions on the credit conversion factor (CCF) applicable to retail margin lending activities.

Regulation APRA

CHESS Replacement: Proposed changes to netting and settlement workflow

AFMA responded to the ASX consultation paper on proposed changes to the CHESS replacement project functionality. AFMA raised concerns that the reduced functionality increased risks and costs for clearing brokers. Our submission noted that the industry was interested to understand alternatives to the proposed approach and suggested that an external risk analysis of the impact of the proposed changes on both the exchange and broker systems should be undertaken before consideration could be given to proceeding with the proposed changes.

Regulation ASX

ASIC Report 668 Allocations in debt capital market transactions

AFMA sent a letter to ASIC on March 17 outlining member observations on particular aspects of Report 668 which outlines ASIC expectations around best practices for allocations in debt capital markets. Main observations related to matters concerning the role of compliance, joint lead manager (JLM) orders and inflated bids.

Regulation ASIC

CP334 Joint AFMA-ISDA-GFMA submission to ASIC Review of Derivative Transaction Rules (Reporting) 2013

ASIC is conducting a review of the ASIC Derivative Transaction Rules (Reporting) 2013 through a two-stage consultation in 2021. The first round of consultation through CP 334 set out initial proposals to harmonise the rules to international standards and remove outdated provisions to ensure the rules are fit for purpose. AFMA joined a submission with ISDA and GFMA, outlining areas where further clarity is required on the proposals and specifying where additional guidance should be incorporated.

Regulation ASIC

BBSW Fallbacks in RBA-Eligible Securities

AFMA sent a submission to the RBA in response to a consultation on the plan to publish new eligibility criteria in the first half of 2021, which will require fallbacks for new BBSW-linked securities issued on or after 1 July 2022. AFMA made a submission after reviewing the draft criteria proposed for fallback provisions, noting that member feedback indicated general support for the Bank’s planned course.

Regulation RBA

Proposed amendments to Chapters 3, 6, 7 and 10 of the AML/CTF Rules (the Phase 1.5 Reforms)

AFMA made a detailed submission on the proposed Rules to support the “Phase 1.5” amendments to the AML/CTF Act.  Our submission focussed on areas to align the proposed Australian requirements with other jurisdictions to mitigate regulatory fragmentation, ensuring sufficient lead times to allow for members to update systems and processes and reducing proscription around certain matters, instead allowing reporting entities to adopt a risk-based approach. 

Regulation AUSTRAC

CPS 226 Joint AFMA-ISDA submission on LIBOR transition discrepancies in timeliness of reconciliations

On behalf of the IBOR Transformation Australian Working Group, AFMA joined with ISDA in sending a submission to APRA regarding the issue of timeliness in resolving portfolio reconciliation discrepancies under CPS 226 when dealing with legacy swaps for the purposes of transitioning from LIBOR, subsequent the CFTC granting a no-action relief from this requirement for amendments to legacy swaps to accommodate fallbacks to alternative benchmarks.

Regulation APRA

CP 338 Remaking ASIC Class Order on Parent Entity Financial Statements

AFMA made a brief submission to ASIC welcoming the remake of Class Order [CO 10/654] Inclusion of parent entity financial statements in financial reports, which was due to expire on 1 April 2021.

Regulation ASIC

Extension of Margin Lending Instalment Warrants Relief

AFMA sent a submission to ASIC on 5 March to seek an extension to the relief provided in the ASIC Class Order Margin lending relief for ASX-traded instalment warrants (CO 10/1034) due to sunset on 1 April. The relief was extended by the release of ASIC Corporations (Margin Lending Relief for Exchange-Traded Instalment Warrants) Instrument 2021/194 on 24 March.

Regulation ASIC

Market Data in The Secondary Equity Markets

AFMA sent a submission to IOSCO in response to its Market Data in the Secondary Equity Markets Consultation Report, endorsing the principles set out in the joint response to the consultation by ICSA and GFMA. The ICSA/GFMA submission provides analysis that illustrates both the causes of high market data costs and the consequences for market efficiency.

Regulation IOSCO

APRA Remuneration Standard 511

AFMA made a submission to the APRA consultation on a revised draft of a remuneration standard, which significantly improved on the previous draft released. Members had flagged concerns around the threshold for inclusion and the burden for smaller foreign ADIs.

Regulation APRA

ASX Clear Consultation Trust Segregated Accounts

AFMA responded to an ASX consultation paper on proposed amendments to the ASX Clear Operating Rules and Guidance Note 12 to provide an improved framework and guidance to assist participants to comply with client money obligations.

Regulation ASX

ASIC CP 333 Reference Checking and Information Sharing Protocol

AFMA provided a submission to the ASIC consultation on implementing the Hayne Royal Commission’s recommendations that firms expand the existing industry standard approach to reference checking for financial advisors.

Regulation ASIC

Treasury Payments System Review

AFMA responded to the Treasury consultation reviewing the regulatory architecture of the Australian payments system to ensure it remains fit-for-purpose and is capable of supporting continued innovation for the benefit of consumers, businesses and the broader economy.

Regulation Treasury

ASIC CP322 Affordable Advice

AFMA provided a submission to an ASIC consultation CP 332 which seeks input from industry participants and relevant stakeholders to help ASIC understand the issues and impediments relating to the supply of good quality affordable personal advice; and the practical steps that can be taken by ASIC and industry to improve consumer access to good quality affordable advice.

Regulation ASIC

Fintech Regtech Committee - Second Issues Paper

AFMA made a submission to the Senate Committee on Fintech and Regtech, highlighting a number of factors that together diminish the relative attractiveness of Australia as a location to conduct mobile financial business, including Fintech business.

Regulation Select Committee on Financial Technology and Regulatory Technology

PMC Consultation Regulator Performance Framework

AFMA made a submission to the PMC consultation on Regulator best practice principles and new arrangements for performance reporting, noting that good governance of regulators is a matter of vital importance to the well-being of societies, given the level of regulatory intervention in many aspects of economic and social activity.

Regulation DPMC

Privacy Act Review

AFMA made a submission to the government’s review of the Privacy Act 1988. AFMA expressed concerns that the proposals seek to remove balance from existing arrangements and cautioned against the wholesale importation of GDPR. For effective economic recovery from the impacts of COVID-19, AFMA suggested it is appropriate for the Government to prioritise measures that support economic growth and jobs and to engage better with the industry for a substantial review of the Act that will have complex flow on implications for other regimes including the Consumer Data Right (CDR).

Regulation Attorney-General’s Department

ASX Clear Capital

ASX conducted a consultation about a new single capital measure (adjusted Liquid Capital – ALC) that non-bank ASX Clear participants will be required to maintain. AFMA made suggestions for streamlining and commitments to efficient turnaround times for the new system to ensure that brokers do not unexpectedly face capital barriers as an obstacle to getting large trades done.

Regulation ASX

Exposure Draft Security Legislation Amendment (Critical Infrastructure) Bill 2020

AFMA made a submission to the consultation on an Exposure Draft of the Security Legislation Amendment (Critical Infrastructure) Bill 2020, which proposes amendments to the Security of Critical Infrastructure Act 2018 (Cth) (SOCI Act). In line with our previous submission, AFMA welcomed the definition and scoping of ‘responsible entities’ in the sector that reflects an appreciation of the sophisticated technological maturities and cyber resilience frameworks implemented by financial institutions. Further, AFMA noted concerns with regulatory harmonisation, ministerial direction, and effective information sharing.

Regulation Home Affairs

Australia's AI Action Plan

AFMA made a submission in response to the Department of Industry, Science, Energy and Resources consultation on the discussion paper laying out the high-level considerations for Australia’s AI Action Plan. AFMA members already employ highly sophisticated technology, including AI and ML in their market practices. Based on their input, AFMA suggested effective approaches to defining AI, regulation of AI and providing an innovation-friendly environment to industry, for the necessary post-pandemic economic recovery of Australia.

Regulation Department of Industry, Science, Energy and Resources

Consultation on Confidentiality of Key ADI Metrics

AFMA’s submission to APRA reiterated that any publication of individual ADI's unaudited business-critical and highly sensitive financial information should be appropriately balanced against the commercial interests of the entities whose data APRA would publish.

Regulation APRA

Foreign Investment Reform (Protecting Australia's National Security) Bill 2020 and Foreign Acquisitions and Takeovers Fees Imposition Amendment Bill 2020 [Provisions]

AFMA made a submission to the Senate Economics Legislation Committee outlining that while supportive of national security related reforms to the foreign investment review framework, contingent interests should not be implicated in changes to the moneylending exemption.

Regulation Senate Standing Committees on Economics

Consultation on the Data Availability and Transparency Bill 2020

AFMA made a submission to the Office of the National Data Commissioner emphasising the need for a more consistent and well-calibrated approach by Government agencies and departments to the sharing and use of data.

Regulation Office of the National Data Commissioner

Consultation on Financial Planners and Advisers Code of Ethics Draft Guide

AFMA’s submission to FASEA highlighted several outstanding issues with the Financial Planners and Advisers Code of Ethics, including Standard 3 and the narrow focus on financial advisors, which is inappropriate for the wide range of roles that make up the retail finance landscape.

Regulation FASEA

Interim Report on Transmission Access Reform: Updated Technical Specifications and Cost-Benefit Analysis

AFMA made a submission to the AEMC reiterating concerns about the proposed model for transmission access reform. AFMA noted that the implementation of dynamic regional pricing may have significant implications for forward contracting in electricity financial markets, which may hinder market efficiency and liquidity.

Regulation AEMC

ESB P2025 Market Design Consultation Paper

AFMA’s submission to the ESB commented on the market design initiatives proposed under the ESB's Post-2025 Market Design project, noting that certain proposals would have a detrimental impact on financial markets if implemented.

Regulation Energy Security Board

Industry consultation on financial products and the Personal Property Securities Act 2009

AFMA made a submission to the Attorney-General's Department consultation examining financial products and the Personal Property Securities Act 2009 (PPSA), requesting that a policy development dialogue process to be put in place to take work forward on the detailed questions posed.

Regulation Attorney General's Department

Major reforms to the Foreign Investment Review Framework – September 2020

AFMA made a submission to Treasury outlining the operational issues arising from proposed changes to the FIRB framework, with a particular focus on the moneylending exemption changes and the implications for syndicated lending.

Regulation Treasury

IOSCO Principles on Outsourcing

AFMA made a submission recommending IOSCO on the proposed fundamental principles on outsourcing in financial markets. AFMA noted that the updated principles are well-founded in that they are technology-agnostic and support proportionality of assessments based on the degree of materiality and criticality of the outsourced tasks.

Regulation IOSCO

Proposed changes to modernised Economic and Financial Statistics (EFS) reporting standards and guidance

AFMA made a submission to APRA seeking further clarification on changes to EFS reporting standards and guidance.

Regulation APRA

Protecting Critical Infrastructure and Systems of National Significance

AFMA made a submission to the Critical Infrastructure Centre, recommending a consistent whole-of-government approach to cyber-security that does not place additional cost recovery burdens on business.

Regulation Home Affairs

Major Reforms to the Foreign Investment Framework

AFMA made a submission to Treasury on the proposed changes to the foreign investment regime, noting that foreign investment will be key to both Australia’s recovery from the severe economic impact of COVID-19 and international competitiveness going forward.

Regulation Treasury

Engineering Registration Scheme

AFMA made a submission to the NSW Fire Safety & External Wall Cladding Taskforce of the NSW Government to raise concerns that the introduction of a registration scheme for Engineers may negatively impact AFMA members due to its broad scope of application.

Regulation NSW Government

October Budget Submission

AFMA was pleased to lodge an October Budget submission to assist the Government in framing the 2020/21 Federal Budget. In the submission, AFMA highlighted the key contribution of Australia's financial markets and their participants to alleviate the worst economic impacts of the COVID 19 pandemic, calling on the Government to focus on tax and regulatory settings that would both meet the needs of domestic business for high-quality and efficient financial services and also enhance Australia as a financial centre.

Taxation Treasury

VIC DELWP Shocks to VEEC scheme market (follow up)

AFMA sent a follow up letter to the Victorian government raising concerns about the combined impact of COVID-19 and regulatory changes to the Victorian Energy efficiency scheme (VEEC) market.

Regulation VIC DELWP

Chi-X Hybrid Listing

AFMA made a submission to the Chi-X consultation on proposed amendments to the Chi-X Operating Rules and Procedures to accommodate trading on Chi-X in hybrid securities.

Regulation Chi-X

Breach Reporting Draft Amendments

AFMA made a submission in response to Treasury's targeted consultation on the amended draft breach reporting legislation, reiterating that the proposed reporting of investigations lies outside the scope of implementation of the Royal Commission recommendations. AFMA expressed concern that the proposed legislation was incompatible with carefully considered and rigorous policy development.

Regulation Treasury

Exemptions in ASIC Corporations (Derivative Transaction Reporting Exemption) Instrument 2015/844 exp

AFMA responded to a letter outlining ASIC's current intentions regarding the OTC derivative transaction reporting exemptions due to expire on 30 September 2020. While broadly supporting the proposed changes, we requested an extension to the masking relief for foreign privacy restrictions, as not extending the relief will place Reporting Entities in a position of conflict of laws between jurisdictions.

Regulation ASIC

Corporate Bond Review

AFMA was pleased to lodge a submission to the House Standing Committee on Tax and Revenue’s Inquiry into the Development of the Australian Corporate Bond Market. This Inquiry is the latest to consider the factors that may have stymied the development of a deep and liquid corporate bond market in Australia and through the Inquiry’s Terms of Reference, focussed on specific issues such as the tax treatment of corporate bonds for both issuers and investors, impediments within the Corporations Act to developing the bond market and also comparable policy settings in other jurisdictions.

Regulation House Standing Committee on Tax and Revenue

Five Minute Settlement Delay

AFMA's submission to the AEMC noted that the majority of AFMA's energy market members support a delay to the start date of five minute settlement, although views differ regarding the appropriate length of delay. Our members generally expect limited negative impact on financial market liquidity in electricity swaps, and perhaps an improvement in cap liquidity, given that less participants are comfortable with selling 5 minute caps compared to 30 minute caps.

Association AEMC

Consumer Data Right - Issues Paper

AFMA made a submission to the Inquiry into Future Directions for the Consumer Data Right (CDR), suggesting that any expansion in CDR's conceptual scope needs to follow a thorough and independent cost-benefit analysis. We advised a market-based, industry-led approach to supported by a simplified regulatory framework, that gives space for industry coordination, secure innovation and developments in a cost-effective manner.

Regulation Treasury

VIC DELWP - Shocks to VEEC Scheme Market

AFMA sent a letter to Victorian Government Department of Environment, Land, Water and Planning (DELWP), raising concerns about the impact of COVID-19 to the supply of Victorian Energy Efficiency Certificates, and the consequences of implementing changes to the Victorian Energy Upgrades program at this point in time. AFMA accordingly requested the VIC DELWP to consider implementing some liability relief and defer implementation of proposed policy changes to provide a smoother transition period for the market.

Regulation VIC DELWP

ASIC CP 329 - Advice Fee Consents and Independent Disclosure

AFMA made a submission to ASIC on CP 329 noting that while the proposed legislative instruments outlining requirements for consent forms and independence disclosures are well aligned with the policy intent of the Royal Commission's recommendations, there needs to be appropriate calibration of the proposals to promote efficiency and reduce duplication.

Regulation ASIC

AUSTRAC Interim Guidance

AFMA has engaged with AUSTRAC regarding adherence to KYC and other AML requirements due to changes in operational circumstances due to the COVID-19 pandemic. Consequent to this, AUSTRAC published guidance on the use of alternative technologies to verify identities (selfies, video calls, etc) and a rule change regarding self-attestation.

Regulation AUSTRAC

ASIC CP 328 - Initial Public Offers

AFMA made a submission in response to ASIC CP 328 supporting the proposals to grant legislative relief for voluntary escrow arrangements and pre-prospectus communications‚ on 25 March.

Regulation ASIC

Financial Services Royal Commission, Enhancing consumer protections and strengthening regulators

AFMA made a submission to Treasury responding to selected aspects of the draft legislation relating to Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry recommendations issued on 31 January 2020.

Regulation Treasury

Confidentiality of data used in ADI quarterly publications and additional historical data

AFMA provided comment on APRA's proposal to determine data sources for its quarterly publications to be non-confidential.
AFMA submitted that individual entity data currently afforded protection under the APRA Act should continue to be afforded this protection, absent which publication has the potential to be of substantial detriment to the commercial interests of the affected entities.

Regulation APRA

Stamping Fee Exemption

AFMA made a submission in response to Treasury‚Äôs  consultation on the Stamping Fee Exemption as it applies to listed investment entities. AFMA‚Äôs submission provided information to support a properly considered policy decision in respect of these products. However, our main priority is to ensure the exemption continues for other products, including Bank Hybrids, REITs, Infrastructure Issues and Shares.

Regulation Treasury

Conflicts of interest and associated conduct risks during the debt capital raising process

AFMA comments on the consultation paper released by IOSCO on the issue of conflicts of interest in debt capital markets.
AFMA is of the view that the proposed IOSCO guidance to regulators is already generally reflected in formal law, regulatory guidance and market practice in Australia and no additional actions will be required to be in alignment with it.

Regulation IOSCO

Financial Accountability Regime (FAR)

After discussions with Treasury and AFMA members, AFMA submitted a response to the proposed BEAR replacement, the Financial Accountability Regime (FAR). We expressed concern regarding the imposition of civil penalties of up to $1.05 million for accountable persons for licence breaches by their firm. AFMA is concerned with whether the FAR measures will necessarily produce the desired beneficial outcomes in a complex and dynamic environment, rather than lead to excessively risk adverse behaviour which dampens commercial activity.

Regulation Treasury

Compensation Scheme of Last Resort (CSLR)

AFMA responded to the consultation on the proposed AFCA operated Compensation Scheme of Last Resort (CSLR) on 7 February.
Members will face an annual fee that could become significant in the event of a large failure of a firm, potentially in an unrelated area. AFMA has made a submission asking for a more sensible definition of small business and the use of a fairer charging methodology.

Regulation Treasury

Corporate Criminal Responsibility

AFMA provided a response to the ALRC Discussion Paper 87 on Corporate Criminal Responsibility. AFMA is concerned that the reform proposed presents longer term increased risks of criminal and civil action for both firms and officers that would be unreasonable.  
The ALRC has since stated that they will not be proceeding with the scheme as originally proposed due to the new Financial Accountability Regime.

Regulation Australian Law Reform Commission (ALRC)

2020-21 Pre Budget Submission

AFMA was pleased to participate in the Government's 2020/21 Budget process. Apart from a number of regulatory and tax issues that we believe ought be implemented through the budget process, we called on the Government to afford strategic priority to the policy settings that would best foster the development of the financial markets in Australia and enhance the competitiveness of the sector.

Taxation Treasury

Financial Regulator Reform (No.2) Bill

AFMA made comment on the exposure draft of the Financial Regulator Reform (No.2) Bill implementing Royal Commission recommendations concerning the need for APRA and ASIC to cooperate. AFMA has long been a strong advocate for cooperation between ASIC and APRA and this is in the clear interest of regulated entities and compliance efficiency.

Regulation Treasury

Financial Market Infrastructure Regulatory Reforms

AFMA comments on the consultation paper by the Council of Financial Regulators (CFR) on Financial Market Infrastructure Regulatory Reforms (CP).
AFMA said that the final proposals to the Government on regulatory reform in this area should lay out basic policy thinking on FMI at this time, explain why current regulatory arrangements are failing to the extent that justifies change to the law.

Regulation RBA

Select Senate Committee on Financial Technology and Regulatory Technology

AFMA lodged a submission to the Committee highlighting the role of the Offshore Banking Unit regime in fostering the retention of Fintech firms in Australia.

Taxation Select Senate Committee on Financial Technology and Regulatory Technology

Request for Guidance on matters associated with IBOR Transition

Letter from the IBOR Transformation Working Group seeking guidance from the Counsel of Financial Regulators on the supervisory expectation regarding conduct matters associated with the transition from LIBOR to RFRs. While this letter focuses on the challenges facing banks, other Australian financial institutions may be facing similar challenges.

Other Council of Financial Regulators (CoFR)

Anti-Money Laundering and Counter-Terrorism Financing and Other Legislation Amendment Bill 2019

AFMA made a submission supporting the Bill and highlighting some areas of ambiguity/uncertainty that could be addressed by further legislative amendment prior to the Bill being passed.

Regulation Senate Legal and Constitutional Affairs Committee

Banking, Finance and Insurance Award 2020‚ Annualised Wage Arrangements

AFMA made a submission to the Fair Work Commission seeking to find efficiencies and avoid the need for timesheets in the Annualised Wage arrangements for well remunerated staff.

Regulation Fair Work Commission

Interest Rate Risk in the Banking Book for ADIs

AFMA comments on APRA's proposals in relation to the draft changes for Prudential Standard APS 117 Capital Adequacy: Interest Rate Risk in the Banking Book.

Regulation APRA

ASX 24 Bond Futures Roll Consultation

AFMA response to the review by ASX of the Bond Futures Roll market structures. AFMA sought opportunities for improvements that will support the integrity and growth of the market and create savings for investors. AFMA also supported the changes to the Bills contracts, and encourages ASX to continue to review its products and rules to find market efficiencies.

Regulation ASX

Review of the AUSTRAC Industry Contribution Levy Arrangements Issues Paper

An AFMA submission re. the AUSTRAC Industry Contribution Levy Arrangements Independent

Regulation Acacia CRE Pty Ltd

COGATI Proposed Access Model - Discussion Paper

An AFMA submission to the AEMC on a discussion paper regarding COGATI proposed access model. We reiterated our comments made in our response to the April consultation paper. In previous submissions, and in several submissions by individual AFMA members, our key concern relates to the potential detrimental effects of the proposals on financial market liquidity. Furthermore, given that the proposed access model represents such fundamental reform if implemented, we believe the AEMC should consider implementation timing which is commensurate with the significance of the proposed change, and a detailed cost-benefit analysis of the change before a decision on implementation is made.

Regulation AEMC

FG002 Financial Planners and Advisers Code of Ethics 2019 and Guidance

AFMA comments on the Financial Planners and Advisers Code of Ethics 2019 (Code) and FG002 Financial Planners and Advisers Code of Ethics 2019 Guidance (Guidance) as mechanisms to lift standards of professionalism across the industry.

Regulation FASEA Standards Authority

Australia's 2020 Cyber Security Strategy

AFMA's feedback in response to the development of Australia's 2020 Cyber Security Strategy.

Regulation Department of Home Affairs - Cyber Security Policy Division

APRA Discussion Paper: Strengthening prudential requirements for remuneration

AFMA welcomes the opportunity to make comment on APRA's proposals in relation to the draft prudential requirements for remuneration.

Regulation APRA

Exposure Draft Consultation on Search Warrants, Access to Telecommunications Intercept Material, Lic

AFMA welcomes the opportunity to comment on the Treasury ASIC Enforcement Review Taskforce's Exposure Draft on Search Warrants, Access to Telecommunications Intercept Material, Licensing and Banning Orders.

Regulation The Treasury

CP 322 Product intervention: OTC binary options and CFDs

AFMA comments on ASIC's proposals to exercise its product intervention power in Pt 7.9A of the Corporations Act to make certain market-wide product intervention orders relating to the issue and distribution of over-the-counter (OTC) binary options and contracts for difference (CFDs) to retail clients

Regulation ASIC

Consultation on Amendments to Margin Requirements

AFMA comments on the consultation on Amendments to Margin Requirements set out to all APRA regulated institutions other than private health insurers.

Regulation APRA

Consultation Paper 319: Securities lending by agents and substantial holding disclosure

AFMA welcomes the opportunity to comment on Consultation Paper 319: Securities lending by agents and substantial holding disclosure, noting that AFMA's membership includes many firms who participate in providing prime brokerage and agent securities lending services.

Regulation ASIC

APRA Banking Executive Accountability Regime Consultation on Product Responsibility

AFMA comments on APRA's BEAR Consultation on Product Responsibility.

Regulation APRA

ASIC CP 315 - Foreign financial services providers

AFMA responds to ASIC consultation paper 315 - Foreign Financial Service Providers.

Regulation ASIC

Market making arrangements in the NEM - draft determination

An AFMA submission to the AEMC on a draft determination regarding market making arrangements in the NEM. AFMA is supportive of the AEMC's draft determination not to make a draft rule to introduce additional market making schemes in the national electricity market. We note also that the Commission is looking to work with relevant market bodies (including AFMA) to firstly, improve the transparency of the over-the-counter (OTC) market, and secondly, enhance the AER's powers to monitor market liquidity.

Regulation AEMC

Consultation Paper 314: Market Integrity Rules for Technological and Operational Resilience

AFMA welcomes the opportunity to comment on Consultation Paper CP 314 Market Integrity Rules for Technological and Operational Resilience, having long been an active participant in the development of technological and operational aspects of the financial markets.

Regulation ASIC

Australian Debt Capital Markets Management and Practice

AFMA members appreciate the opportunity to discuss Australian debt capital market (DCM) activities and practices with ASIC.

Regulation ASIC

COAGATI Access Reform - Directions Paper

An AFMA submission to the AEMC on a directions paper regarding COGATI implementation - Access and Charging. We reiterated our comments made in our response to the April consultation paper. The introduction of dynamic regional pricing represents significant reform which has been presented as a solution without due consideration of costs and benefits of its implementation or of alternative solutions, and more detailed analysis of costs and benefits is desirable before major implementation decisions are made. It also introduces basis risk for generators who enter into hedging contracts based on the regional reference price, however may receive a different dynamic regional price.

Regulation AEMC

CP 313 Product Intervention Power

AFMA comments on Consultation Paper 313 Product Intervention Power, which sets out proposals for regulatory guidance on the product intervention provisions in the Corporations Act flowing from the Treasury Laws Amendment (Design and Distribution Obligations and Product Intervention Act) 2019 amendments.

Regulation ASIC

ASIC CP 312 Stub equity in control transactions

AFMA comments on ASIC Consultation Paper 312 - Stub equity in control transactions

Regulation ASIC

Consultation on Pre-Cessation Issues for LIBOR and Certain other Interbank Offered Rates

AFMA welcomes the opportunity to make comment on the consultation concerning Pre-Cessation Issues for LIBOR and Certain other Interbank Offered Rates.

Regulation ISDA

Guidance Note 20 Equity Derivatives Consultation - Supplementary Information

Supplementary information for AFMA's submission to the consultation on Guidance Note 20 - Equity Derivatives.

Regulation Takeovers Panel Secretariat

AUSTRAC Industry Contribution 2019-20 - Stakeholder Consultation Paper

A submission in relation to AUSTRAC’s proposed charging model for the 2019/20 Industry Contribution.

Regulation AUSTRAC

APRA Consultation on Proposed ARS 722.0 ABS/RBA Derivatives Data Collection

AFMA welcomes the opportunity to make comment on APRA's proposals in relation to the draft Reporting Standard 722.0 ABS/RBA Derivatives.

Regulation APRA

ASIC Report 605 Allocations in equity raising transactions

The members of AFMA have given careful consideration to the best practices provided in ASIC Report 605: Allocations in equity raising transactions.

Regulation ASIC

Guidance Note 20 Equity Derivatives Consultation

AFMA welcomes the review of Guidance Note 20 Equity Derivatives as an opportunity to increase the clarity of guidance and thereby better serve companies, bidders and the market.

Regulation Takeovers Panel Secretariat

National Electricity Amendment (Short Term Forward Market) Rule 2019

An AFMA submission to the AEMC on a consultation paper regarding a suggested Short Term Forward Market. We believe that the majority of AFMA's energy market members are yet to be convinced that the benefits of an AEMO operated short term forward market as proposed would be outweighed by the costs that would necessarily need to be incurred.

Regulation AEMC

CPG 234 Information Security

AFMA welcomes the opportunity to comment on APRA's consultation on Prudential Practice Guide CPG 234 Information Security.

Regulation APRA

Consumer Data Right Rules Exposure Draft

AFMA welcomes the opportunity to provide comments in response to ACCC's Consumer Data Right Rules Exposure Draft consultation.

Association ACCC

Proposed changes to Guidance Note 1 and Guidance Note 10 relating to business continuity and cyber r

AFMA welcomes the opportunity to provide comment on ASX's consultation paper in relation to guidance changes for clearing and settlement members relating to business continuity and cyber resilience.

Regulation ASX

Consultation on Corporations Amendment (National Guarantee Fund Payments) Regulations 2019

AFMA responds to the consultation on the draft Corporations Amendment (National Guarantee Fund Payments) Regulations 2019.

Regulation The Treasury

BEAR Variable Remuneration

AFMA responds to the consultation on the BEAR variable remuneration.

Regulation APRA

ASX 90 Day Bank Bill Futures Contract Changes Consultation

AFMA welcomes the ASX's consultation on changes to the 90 Day Bank Bill Futures Contracts as a positive step in evolving and growing the market.

Regulation ASX

COGATI Implementation - Access and Charging

An AFMA submission to the AEMC on a consultation paper regarding COGATI implementation - Access and Charging. The introduction of dynamic regional pricing represents significant reform which has been presented as a solution without due consideration of costs and benefits of its implementation or of alternative solutions, and more detailed analysis of costs and benefits is desirable before major implementation decisions are made. It also introduces basis risk for generators who enter into hedging contracts based on the regional reference price, however may receive a different dynamic regional price.

Regulation AEMC

Enforceability of financial services consumer industry codes

AFMA is making comment on the Consultation Paper entitled 'Enforceability of financial services industry codes'. This takes up recommendation 1.15 of the Banking, Superannuation and Financial Services Royal Commission.

Regulation The Treasury

APRA Capability Review

AFMA welcomes the opportunity to provide comment to the APRA Capability Review.

Regulation The Treasury

ASX Listing Rules Update Consultation

AFMA is making comment on the Consultation Paper entitled 'Simplifying, clarifying and enhancing the integrity and efficiency of the ASX listing rules'.

Regulation ASX

APRA Discussion Paper: Increasing the loss-absorbing capacity of ADIs to support orderly resolution

AFMA welcomes the opportunity to make comment on APRA's proposals in relation to increasing the loss-absorbing capacity of ADIs to support orderly resolution.

Association APRA

2019-20 Pre-Budget Submission

AFMA is pleased to provide a submission to Treasury to assist in the formulation of the Government's 2019-20 Federal Budget.

Taxation The Treasury

Markets Disciplinary Panel Regulatory Guide Consultation (CP 306)

AFMA welcomes the opportunity to make comment on Consultation Paper 306 Markets Disciplinary Panel (CP 306).

Regulation ASIC

Review of the AUSTRAC Industry Contribution Levy Arrangements - Issues Paper

An AFMA submission re. the AUSTRAC Industry Contribution Levy Arrangements Independent

Regulation Acacia CRE Pty Ltd

BEAR - Provision of draft accountability information by small and medium ADIs

AFMA has requested an extension of the submission deadline for information relating to the BEAR provision of draft accountability information by small and medium ADI's.

Regulation APRA

Open Banking Provisions for further Consultation

AFMA welcomes the second round of consultation by Treasury in relation to the Exposure Draft.

Regulation The Treasury

Consumer Data Right Rules Framework

AFMA supports the introduction of Open Banking as part of the Consumer Data Right as a way to ensure that the information customers already share with their bank can be safely shared with others they trust, and to give customers more control over their information. While AFMA would prefer a market-based and industry-led solution to deliver these outcomes, as we believe this would offer greater flexibility and lower cost, we accept the Government's conclusions about the appropriate framework and have limited our comments to refinements around the proposed approach.

Regulation ACCC

ASIC Derivative Transaction Reporting Relief Extension

An application for continuing exemptions from certain Derivative Transaction Reporting Rules

Other ASIC

Discussion Paper: Proposed Compliance Framework, Liquidity Management

AFMA feedback on the ATO's Discussion Paper for a proposed compliance framework re. liquidity management.

Taxation ATO

Monthly Publication of CPI

AFMA supports the initiative of the Australian Bureau of Statistics to publish Australian inflation data as measured by the Consumer Price Index on a monthly basis rather than a quarterly basis.

Regulation Australian Bureau of Statistics

IBOR Fallbacks for 2006 ISDA Definitions Consultation

An AFMA submission re. the consultation concerning Interbank Offered Rate (IBOR) Fallbacks for 2006 ISDA Definitions Consultation on Certain Aspects of Fallbacks for Derivatives Referencing GBP LIBOR, CHF LIBOR, JPY LIBOR, TIBOR, Euroyen TIBOR and BBSW.

Regulation ISDA

AML-CTF Act Reform Phase 1.5

An AFMA submission on the Anti-Money Laundering and Counter-Terrorism Financing Amendment Bill 2018 Exposure Draft and the Indicative Draft AML/CTF Rules Phase 1.5 in relation to reliance and correspondent banking.

Regulation National Security and Law Enforcement Policy Division

AFMA Response to OTC Transparency in the NEM Consultation Paper

An AFMA submission on an ESB consultation paper on OTC transparency in the NEM. We note that in order for a trade repository solution to be a preferred solution, a case must be made to prove that the benefits of a trade repository outweigh the significant cost outlay and administrative burden. As confidentiality is a key concern amongst our member firms, on balance aggregated reporting is likely to be preferable to members. Individual contract trades on an anonymised basis may not be sufficient to conceal confidential information. In addition, inclusion of specific bespoke transactions could have the potential to distort the data, and not provide any useful information value to market participants, or indeed mislead.

Regulation Energy Security Board

AFMA Response to Market Making Requirements in the NEM

An AFMA submission on an ESB consultation paper on Market Making requirements in the NEM. A number of members have expressed a preference for a market liquidity mechanism that does not involve compulsion, noting a mechanism that provides incentives for market making would be preferred. Hence, a market participant-lead solution to provide liquidity could be considered, with a compulsory liquidity obligation as a fallback process.

Regulation Energy Security Board

Response to discussion paper: "Revisions to the related entities framework for ADIs"

AFMA notes a number of operational concerns with some of the proposals around the related entities framework.

Regulation APRA

Open Banking - Treasury Laws Amendment (Consumer Data Right) Bill 2018

Submission that Open Banking and the Consumer Data Right more generally propose profound changes to the banking and economic environment, and encouraging the Government not to rush consideration of these changes and risk unintended consequences. Given the types of risks associated with banking as well as business and consumer data, the investment of extra time now is the best option and could help minimize the risk of serious problems arising later. Proper consideration of the proposals requires a whole-of-government approach including with APRA, Home Affairs, ASIC, RBA and AUSTRAC combined with deep engagement with industry over an extended period and will require a consideration of prudential matters, financial system stability matters, privacy, market integrity, compatibility with money laundering and counter terrorism programs, and the potential micro- and macro-economic impact.

Regulation Treasury

Treasury Laws Amendment (Black Economy Taskforce Measures No. 2) Bill 2018

A submission on proposed amendments to the Taxation Administration Act 1953 to bring within scope of the third-party reporting requirements payments made by entities that supply an information technology service to another entity wholly or partly for the supply of an information technology service.

Taxation The Treasury

Treasury Laws Amendment (Black Economy Taskforce Measures No. 2) Bill 2018

Submission in relation to the proposed amendments to the Taxation Administration Act 1953 to bring within scope of the third party reporting requirements payments made by entities that supply an information technology service to another entity wholly or partly for the supply of an information technology service, noting the proposed exception for payments made to members of the same consolidated group or MEC group. AFMA suggests that the proposed exception be broadened to capture payments made to members of the same economic group, which could be done in a manner consistent with the Significant Global Entity definition  ie. by including within the exception payments made to entities that are within the same accounting consolidated group.

Regulation Treasury

Design and Distribution Obligations and Product Intervention Power - draft legislation and explanato

Further submission on 2018 Bill reiterating the need to balance compliance cost and regulatory burden and provide greater protections to investors in relation to more complex products. In terms of capital raising it is unclear why the regime distinguishes between ordinary shares and other ordinary securities as these products are used predominantly to provide a basic economic interest in an operating business. Clarity is needed whether distribution by personal advice is carved out of the DDO framework or whether a target market determination (TMD) still has to be produced but can be limited to a statement that distribution to retail investors is via personal advice only. Other issues include concerns about a TMD being misconstrued as disclosure or advice, guidance about the form and content of a TMD, ongoing uncertainty about the reasonable steps test in relation to exchange traded products where there is no relationship between the issuer and the distributor, and a lack of standardisation in relation to record keeping obligations.

Regulation Treasury

ASIC Consultation Paper 302 Proposed changes to capital requirements for market participants

Submission supporting adjustments the capital requirements to reflect underlying risk. Where risks cannot be efficiently calculated on a case by case basis AFMA also supports the use of proxy standard estimates as proposed in a number of cases as an appropriate balance between accuracy and efficiency. There are concerns around the difficulties of calculating cash flows out twelve months in a markets business, and the proper roles of management and boards in relation to managing liquidity risks.

Regulation ASIC

ASIC Consultation Paper 301 Foreign Financial Service Providers

Submission supporting the continuation of the sufficient equivalence and limited connection class order regime, albeit with additional conditions on the relief, and/or a narrowing of the scope of the available relief in order for ASIC to achieve its regulatory objectives, including to strive to maintain, facilitate and improve the performance of the financial system and the entities within that system in the interests of commercial certainty, reducing business costs, and the efficiency and development of the economy. AFMA is strongly of the view that if a foreign AFSL regime is introduced, the licensing process needs to be streamlined and simple for entities that are already licensed in equivalent jurisdictions. An overly onerous application process is likely to be a significant disincentive to offshore entities obtaining a licence and providing services to Australian clients.

Regulation ASIC

Application of CPS226 to physically settled precious metals forwards

Submission requesting APRA to allow an 'APRA covered entity' to exclude physically settled precious metals forwards from the posting and collecting of initial margin under CPS 226, due to the inconsistency between how APRA treats precious metals forwards under CPS226 and margining product capture in other G20 countries, and how this inconsistency affects the business of APRA covered entities and could lead to regulatory arbitrage and an uneven playing field between competitors in different jurisdictions.

Regulation APRA

Joint ISDA / AFMA / GFXD Submission on 2018 Reporting Expiries

Policy submission from ISDA, AFMA and GFXD on the importance of maintaining the exemptions found in ASIC Corporations (Derivative Transaction Reporting Exemption) Instrument 2015/844

Other ASIC

Draft amendments to Chapters 4 and 15 of the AML/CTF Rules relating to corporate customers who are c

Submission behalf of AFMA members who are intermediaries providing services to an investor directed portfolio service (IDPS), managed discretionary account (MDA) or custodian, supporting the proposed changes as the current requirement to 'look through' to the underlying beneficiaries of the custodial or depository service creates unnecessary duplication of effort and administration.

Regulation AUSTRAC

Updates to AUSTRAC Compliance Guide re self-attestation of identity; independent review of AML/CTF p

Submission commenting on proposed changes to the requirements for review of AML/CTF programs, including the independence of the reviewer, the matters to be reviewed, the frequency of reviews and factors that might increase the frequency of review.

Regulation AUSTRAC

International Banking Statistics Changes - Resubmissions

A response to APRA's intended adjustments to reporting standards, based on various minor changes made to the International Banking Statistics Reporting Standards.

Regulation APRA

ESB National Energy Guarantee Draft Detailed Design Consultation Paper

Submission agreeing that a key objective of the design of the Guarantee should be to enhance the liquidity, transparency and the level of competition in the retail and wholesale electricity markets. AFMA appreciates the efforts that the ESB has made to engage with stakeholders to ensure that this is the case and urges the ESB to continue to take a flexible approach to achieving the objectives of the Guarantee.

Regulation Energy Security Board

Consultation on proposed Australian Financial Complaints Authority (AFCA) Rules of Complaint Resolut

Submission noting that as access to the scheme is not limited to retail clients, and there is no clear carve out for non-retail clients, AFCA should closely monitor the usage of the scheme by small business to identify whether there are any issues related to access to the scheme that could be addressed through further review. All parties should have reasonable notice and opportunity to respond to systemic issues, potential significant contraventions or breaches, and preliminary assessments in relation to complaints within a timeframe that is appropriate to the complexity and circumstances of each matter. The Rules should clarify how the broad powers over remediation of systemic issues could interact with ASIC's powers in relation to remediation, and how AFCA's remit over privacy-related complaints might operate alongside the Office of the Australian Information Commissioner

Regulation AFCA

Financial Adviser Standards and Ethics Authority - Proposed Guidance on Education Pathways for Exist

Submission urging FASEA to recognise different specialisations and advice activities, including financial markets advisers, that do not require the same skills and competencies as financial planning providers. FASEA should adopt a model that sets a minimum (but still appropriately high) standard of qualifications and competency across the sector, but allows for appropriate streaming and specialisation in addition to the minimum standards that are common to all.

Regulation FASEA

ASIC Consultation Paper 299: Short selling - Reliefs and Orders

Submission in relation to ASIC review of existing relief from the naked short selling prohibition provided to market makers of certain exchange traded products (ETPs); the granting of legislative relief from the naked short selling prohibition in the context of corporate actions and initial public offering (IPO) sell-downs; changing the relevant time short positions are calculated; and remaking a number of class orders on short selling which are due to sunset soon after 10 years. An important aspect of ASIC's review is to consolidate all short selling relief into a single instrument, including relief that is to be remade as a result of sunsetting as well as any new or modified relief raised by the proposals.

Regulation ASIC

AUSTRAC Industry Contribution 2018-19 - Stakeholder Consultation Paper

Submission reiterating previous concerns about industry contribution model and highlighting that only 570 of approximately 14,000 reporting entities pay the entire industry contribution. Although the forward estimates suggest that the amounts to be recovered would decrease each year until 2020-21, that has not occurred this year due to additional funding announced in MYEFO in December 2017 and there is no certainty for industry that the Government will not announce additional funding measures in the coming years.

Regulation AUSTRAC

Proposed Financial Institutions Supervisory Levies for 2018-19

Submission noting that the proposed levies further reduce the maximum and the restricted levy rate applied to the foreign branch ADIs from one third of that for a domestic ADI to one fifth. This follows on from a reduction in the maximum and the restricted levy rate applied to foreign ADIs from one half of that for domestic ADIs to one third in FY 2017-18. The stated purpose of this change in calculation parameters is to better reflect the cost of supervision of these institutions. This approach is consistent with the position advocated by AFMA that the supervisory levies should reflect bank risks and the cost of regulation by APRA.

Regulation Treasury

APRA Information Security Management Discussion Paper

Submission noting that information security is the primary security matter for banks and financial markets participants, and supporting the extension of the prudential standards to information security matters where it is done in a coordinated way that fits well with the other regulatory and legislative initiatives underway. There is a need to ensure there is appropriate coordination with the proposed Government requirements to open up customer data to many more firms under the Open Banking framework which applies to information customers have requested be released to third parties including non-ADI firms, as data will be transferred from entities subject to APRA's information security requirements such as in CPS 234 and CPG 235, to entities that are not.

Regulation APRA

Reserve Bank of New Zealand Consultation Paper: Authorisations for the use of restricted words by ov

Submission supporting the need for a formal public register of authorised overseas banks conducting activities in New Zealand, and the objectives regarding clarity for consumers. However because the non-objection letters currently issued by RBNZ often cover very specific and minor activities, therefore justifying the exemption from registration for a number of entities, we recommend that obligations for and related to authorisation should continue to be managed proportionately according to an entity's level of activity in New Zealand.

Regulation RBNZ

Financial Adviser Standards and Ethics Authority Code of Ethics for Financial Advisers - Exposure Dr

AFMA strongly supports the implementation of the professional standards for financial advisers regime and the role of FASEA in implementing the regime, but urges FASEA to adopt more specific standards that stipulate appropriate practices and rules of behaviour, in order to avoid inconsistent interpretation by code monitoring bodies and additional costs in implementation.

Regulation FASEA

Cost Recovery Implementation Statement: Fees for service under the ASIC industry funding model (2018

Submission noting there is no legislative basis to charge a fee for a market integrity rule waiver as it has been omitted from the Regulations.

Regulation ASIC

ASX Market Management - Consultation Paper

The industry recognises the generally very high level of ASX infrastructure "up time". When there are outages the industry is keen to ensure that any risk of damage to the reputation of Australia's markets and the confidence of users of the markets is minimised. In this regard it is critical that the session states are managed in a clear and optimised way for the market as a whole, in order to create the best outcome for the national interest.

Regulation ASX

New APRA data collection solution

Submission supporting solutions that result in minimal cost and disruption to ADIs while still allowing the evolution and improvement of the system. The solution should allow or support smart submission with automatic form completion where appropriate and logical checking of data, and notification of potential errors, should be flexible and extensible, and have user-friendly features to support easy tracking and notification around submission status.

Regulation APRA

Corporations (Fees) Amendment (ASIC Fees) Bill 2018 and amendments to Corporations (Fees) Regulation

Submission reiterating concerns about fees for changes to SEGC operating rules when SEGC is essentially a compensation fund, and inconsistencies between fees for market licensee and CS facility reports.

Regulation Treasury

Further submission on Regulatory Guide 264 - Sell-side research

Submission recommending further adjustments to the guidance in relation to research analyst input to committees due to concerns about the ability of committees to have the benefit of (but not to influence) an independent research analyst's expert and personal assessment of the issuing company, before the IER is widely distributed. AFMA members also believe the restriction is out of kilter with global practices and would result in Australia being the only developed market globally which restricts committees having access to all relevant material, which includes analysts expert views.

Regulation ASIC

Banking Executive Accountability Regime (Size of an Authorised Deposit-taking Institution) Determina

Submission recommending that the Government should adjust the thresholds for small and medium ADIs to ensure that small and medium ADIs continue to be well placed to attract and retain talent, compete, and offer a range of services and products.

Regulation Treasury

Implementing the OECD Hybrid Mismatch Rules - Updated Exposure Draft and Draft Explanatory Memorandu

Submission supporting refinement of the proposed amendments to Part IIIB to implement the branch hybrid mismatch rules in a manner that neutralises a clear hybrid mismatch, but that the deduction would not otherwise be denied to the foreign bank branch. This could potentially be done with reference to the books and records of the branch or where the quantum of the deduction available to the branch does not exceed the amount available assuming Part IIIB did not have any application (i.e. the arm's length amount determined under Subdivision 815-C).

Taxation Treasury

Competition in the Australian financial system

AFMA submission to the Productivity Commission inquiry draft report consultation.

Regulation Productivity Commission

Open Banking

Submission in response to the final report into the review of open banking in Australia.

Other The Treasury

National Energy Guarantee

Submission on draft NEG design consultation paper.

Regulation Energy Security Board

Diverted Profits Tax

Joint industry submission in relation to the Diverted Profits Tax draft law companion ruling and draft practical compliance guideline.

Regulation ATO

Design & Distribution Obligations and Product Intervention Power Draft Legislation and Explanatory M

Submission in relation to draft legislation.

Regulation The Treasury

Foreign Influence Transparency Scheme Bill 2017

Supplementary submission on the FITS Bill in response to Committee questions.

Regulation Parliamentary Joint Committee on Intelligence and Security

ASIC draft guidance on ASIC Market Integrity Rules for participants of securities markets

Submission on draft guidance in relation to securities market participants‚ management plans.

Regulation ASIC

2018-19 Pre-Budget Submission

Submission on matters for consideration in the formulation of the FY2018-19 Budget strategy.

Taxation The Treasury

Foreign Influence Transparency Scheme Bill 2017

Submission on the likely adverse impacts on industry bodies such as AFMA of compliance with the Bill as drafted.

Regulation Parliamentary Joint Committee on Intelligence & Security