Submissions 2018

Date	Title & Summary	Topic Area	Sent to
17-Sep-2018	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
17-Aug-2018	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
15-Aug-2018	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
15-Aug-2018	Design and Distribution Obligations and Product Intervention Power - draft legislation and explanatory memorandum 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
03-Aug-2018	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
02-Aug-2018	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
31-Jul-2018	Draft amendments to Chapters 4 and 15 of the AML/CTF Rules relating to corporate customers who are custodians 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
13-Jul-2018	Updates to AUSTRAC Compliance Guide re self-attestation of identity; independent review of AML/CTF programs 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
13-Jul-2018	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
03-Jul-2018	Consultation on proposed Australian Financial Complaints Authority (AFCA) Rules of Complaint Resolution Scheme 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
29-Jun-2018	Financial Adviser Standards and Ethics Authority - Proposed Guidance on Education Pathways for Existing Advisers 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
29-Jun-2018	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
22-Jun-2018	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
08-Jun-2018	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
07-Jun-2018	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
06-Jun-2018	Reserve Bank of New Zealand Consultation Paper: Authorisations for the use of restricted words by overseas banks 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
01-Jun-2018	Financial Adviser Standards and Ethics Authority Code of Ethics for Financial Advisers - Exposure Draft of Proposed Standard 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
23-May-2018	Cost Recovery Implementation Statement: Fees for service under the ASIC industry funding model (2018-19) May 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
04-May-2018	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
02-May-2018	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
01-May-2018	Corporations (Fees) Amendment (ASIC Fees) Bill 2018 and amendments to Corporations (Fees) Regulations 2001 Exposure Draft 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
24-Apr-2018	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
20-Apr-2018	Banking Executive Accountability Regime (Size of an Authorised Deposit-taking Institution) Determination 2018 Exposure Draft 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
06-Apr-2018	Implementing the OECD Hybrid Mismatch Rules - Updated Exposure Draft and Draft Explanatory Memorandum 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
29-Mar-2018	Competition in the Australian financial system AFMA submission to the Productivity Commission inquiry draft report consultation.	Regulation	Productivity Commission
23-Mar-2018	Open Banking Submission in response to the final report into the review of open banking in Australia.	Other	The Treasury
08-Mar-2018	National Energy Guarantee Submission on draft NEG design consultation paper.	Regulation	Energy Security Board
08-Mar-2018	Diverted Profits Tax Joint industry submission in relation to the Diverted Profits Tax draft law companion ruling and draft practical compliance guideline.	Regulation	ATO
11-Feb-2018	Design & Distribution Obligations and Product Intervention Power Draft Legislation and Explanatory Memorandum Submission in relation to draft legislation.	Regulation	The Treasury
02-Feb-2018	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
02-Feb-2018	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
31-Jan-2018	2018-19 Pre-Budget Submission Submission on matters for consideration in the formulation of the FY2018-19 Budget strategy.	Taxation	The Treasury
17-Jan-2018	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

Date	Title & Summary	Topic Area	Sent to
31-Jan-2018	2018-19 Pre-Budget Submission Submission on matters for consideration in the formulation of the FY2018-19 Budget strategy.	Taxation	The Treasury
02-Aug-2018	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
07-Jun-2018	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
29-Jun-2018	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
03-Aug-2018	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
15-Aug-2018	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
02-Feb-2018	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
04-May-2018	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
22-Jun-2018	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
20-Apr-2018	Banking Executive Accountability Regime (Size of an Authorised Deposit-taking Institution) Determination 2018 Exposure Draft 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
29-Mar-2018	Competition in the Australian financial system AFMA submission to the Productivity Commission inquiry draft report consultation.	Regulation	Productivity Commission
03-Jul-2018	Consultation on proposed Australian Financial Complaints Authority (AFCA) Rules of Complaint Resolution Scheme 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
01-May-2018	Corporations (Fees) Amendment (ASIC Fees) Bill 2018 and amendments to Corporations (Fees) Regulations 2001 Exposure Draft 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
23-May-2018	Cost Recovery Implementation Statement: Fees for service under the ASIC industry funding model (2018-19) May 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
11-Feb-2018	Design & Distribution Obligations and Product Intervention Power Draft Legislation and Explanatory Memorandum Submission in relation to draft legislation.	Regulation	The Treasury
15-Aug-2018	Design and Distribution Obligations and Product Intervention Power - draft legislation and explanatory memorandum 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
08-Mar-2018	Diverted Profits Tax Joint industry submission in relation to the Diverted Profits Tax draft law companion ruling and draft practical compliance guideline.	Regulation	ATO
31-Jul-2018	Draft amendments to Chapters 4 and 15 of the AML/CTF Rules relating to corporate customers who are custodians 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
13-Jul-2018	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
29-Jun-2018	Financial Adviser Standards and Ethics Authority - Proposed Guidance on Education Pathways for Existing Advisers 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
01-Jun-2018	Financial Adviser Standards and Ethics Authority Code of Ethics for Financial Advisers - Exposure Draft of Proposed Standard 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
17-Jan-2018	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
02-Feb-2018	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
24-Apr-2018	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
06-Apr-2018	Implementing the OECD Hybrid Mismatch Rules - Updated Exposure Draft and Draft Explanatory Memorandum 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
08-Mar-2018	National Energy Guarantee Submission on draft NEG design consultation paper.	Regulation	Energy Security Board
02-May-2018	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
23-Mar-2018	Open Banking Submission in response to the final report into the review of open banking in Australia.	Other	The Treasury
17-Sep-2018	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
08-Jun-2018	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
06-Jun-2018	Reserve Bank of New Zealand Consultation Paper: Authorisations for the use of restricted words by overseas banks 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
17-Aug-2018	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
13-Jul-2018	Updates to AUSTRAC Compliance Guide re self-attestation of identity; independent review of AML/CTF programs 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

Date	Title & Summary	Topic Area	Sent to
31-Jan-2018	2018-19 Pre-Budget Submission Submission on matters for consideration in the formulation of the FY2018-19 Budget strategy.	Taxation	The Treasury
02-Aug-2018	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
07-Jun-2018	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
29-Jun-2018	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
03-Aug-2018	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
15-Aug-2018	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
02-Feb-2018	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
04-May-2018	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
22-Jun-2018	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
20-Apr-2018	Banking Executive Accountability Regime (Size of an Authorised Deposit-taking Institution) Determination 2018 Exposure Draft 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
29-Mar-2018	Competition in the Australian financial system AFMA submission to the Productivity Commission inquiry draft report consultation.	Regulation	Productivity Commission
03-Jul-2018	Consultation on proposed Australian Financial Complaints Authority (AFCA) Rules of Complaint Resolution Scheme 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
01-May-2018	Corporations (Fees) Amendment (ASIC Fees) Bill 2018 and amendments to Corporations (Fees) Regulations 2001 Exposure Draft 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
23-May-2018	Cost Recovery Implementation Statement: Fees for service under the ASIC industry funding model (2018-19) May 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
11-Feb-2018	Design & Distribution Obligations and Product Intervention Power Draft Legislation and Explanatory Memorandum Submission in relation to draft legislation.	Regulation	The Treasury
15-Aug-2018	Design and Distribution Obligations and Product Intervention Power - draft legislation and explanatory memorandum 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
08-Mar-2018	Diverted Profits Tax Joint industry submission in relation to the Diverted Profits Tax draft law companion ruling and draft practical compliance guideline.	Regulation	ATO
31-Jul-2018	Draft amendments to Chapters 4 and 15 of the AML/CTF Rules relating to corporate customers who are custodians 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
13-Jul-2018	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
29-Jun-2018	Financial Adviser Standards and Ethics Authority - Proposed Guidance on Education Pathways for Existing Advisers 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
01-Jun-2018	Financial Adviser Standards and Ethics Authority Code of Ethics for Financial Advisers - Exposure Draft of Proposed Standard 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
17-Jan-2018	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
02-Feb-2018	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
24-Apr-2018	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
06-Apr-2018	Implementing the OECD Hybrid Mismatch Rules - Updated Exposure Draft and Draft Explanatory Memorandum 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
08-Mar-2018	National Energy Guarantee Submission on draft NEG design consultation paper.	Regulation	Energy Security Board
02-May-2018	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
23-Mar-2018	Open Banking Submission in response to the final report into the review of open banking in Australia.	Other	The Treasury
17-Sep-2018	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
08-Jun-2018	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
06-Jun-2018	Reserve Bank of New Zealand Consultation Paper: Authorisations for the use of restricted words by overseas banks 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
17-Aug-2018	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
13-Jul-2018	Updates to AUSTRAC Compliance Guide re self-attestation of identity; independent review of AML/CTF programs 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