ASIC has published an update on the timing of its regulatory program.
This includes information on the proposed timing of consultation and release of regulatory guidance in relation to legislation implementing the recommendations of the Financial Services Royal Commission.
| Project | Indicative timing |
| Product intervention power | ASIC will publish a regulatory guide in June 2020 on how it will use the product intervention power. |
| Mortgage broker best interest duty | ASIC will publish a new regulatory guide by July 2020, for mortgage brokers and other relevant credit licensees, on how it will assess compliance with the best interest obligations in Pt 3-5A of the National Consumer Credit Protection Act 2009. |
| Internal dispute resolution review | ASIC will publish a new regulatory guide, RG 271 Internal dispute resolution, outlining updated IDR standards and requirements. The guide will be published in July 2020 to allow industry to make the necessary changes ahead of commencement on 5 October 2021. |
| Product design and distribution obligations | ASIC plans to publish regulatory guidance on product design and distribution obligations by October 2020. |
| Remediation policy review | In the last quarter of 2020, ASIC will consult on its proposals to extend the application of its remediation policy in Regulatory Guide 256 Client review and remediation conducted by advice licensees (RG 256) beyond financial advice. |
| Internal dispute resolution data collection and reporting | ASIC will commence further consultation on IDR data collection and reporting in the last quarter of 2020. |
| Review of buy now pay later products | ASIC expects to release its report in the last quarter of 2020. |
| Removal of insurance claims handling financial services exemption | Later of September 2020 or on introduction of legislation into Parliament. |
| Review of the ePayments Code | ASIC will consult on the Code in the last quarter of 2020. |
| Reference checking protocol for mortgage brokers and financial advisers | Later of October 2020 or on the introduction of legislation into Parliament. |
| Insurance in super | ASIC will report by December 2020 |
| No hawking in superannuation and insurance | ASIC intends to consult in late 2020 on changes to Regulatory Guide 38 The hawking prohibitions |
| Deferred sales model for add-on insurance | ASIC intends to consult in late 2020 on an information sheet about the deferred sales model for add-on insurance. |
| Super advice: Annual renewal and payment, Disclosure of lack of independence, No deducting of advice fees from MySuper accounts. Limitations on deducting advice fees from choice accounts | ASIC will issue relevant legislative instruments in December 2020, subject to the passage of legislation. |
| Breach reporting and misconduct | ASIC intends to consult in February 2021 on an update to Regulatory Guide 78 Breach reporting by AFS licensees on revised breach reporting requirements and on a new information sheet about new requirements for financial advisers and mortgage brokers to investigate misconduct and notify and remediate affected clients. |
| Enforceable code provisions | ASIC intends to consult in the second quarter of 2021 on a draft update to Regulatory Guide 183 Approval of financial services sector codes of conduct. |
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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.
