On 6 February 2020 the Financial Sector Reform (Hayne Royal Commission Response—Stronger Regulators (2019 Measures)) Bill 2019 was passed by both Houses of Parliament. The Act is awaiting Royal Assent. Background.
UPDATE: Royal Assent given on 17 February 2020.
The Bill will implement recommendations from the ASIC Enforcement Review Taskforce Report to:
• harmonise ASIC’s search warrant powers;
• improve ASIC’s ability to access certain telecommunications information;
• strengthen ASIC’s licensing powers; and
• extend ASIC’s banning powers to ban individuals from managing financial services businesses.
The amendments replace the current ‘good fame or character’ test for AFS licensees with a ‘fit and proper’ person test to align it with the current fit and proper test in the credit licensing regime.
An AFS licensee or credit licensee who requests a variation of their licence must satisfy the fit and proper person test in order for ASIC to grant a varied licence.
The Act commences on the day after Royal Assent.
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Author: David Jacobson
Principal, Bright Corporate Law
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About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.
