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Submissions 2020

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DateName
Date Title & Summary Topic Area Sent to
09-Nov-2020

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
06-Nov-2020

BCBS Principles for Operational Resilience

AFMA made a submission to the BCBS's proposed principles for operational resilience and provided comments in support of the principles-based approach. To enable industry to use technology to ensure operational resilience, AFMA also noted the role that financial regulators could play in supporting the industry with a compliance environment that assists with innovation and market competitiveness.

Basel Committee on Banking Supervision
06-Nov-2020

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
02-Nov-2020

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
26-Oct-2020

IOSCO consultation on the Use of Artificial Intelligence and Machine Learning by Market Intermediaries and Asset Managers

AFMA made a submission to IOSCO on the proposed measures that reflect expected conduct standards by market intermediaries and asset managers using Artificial Intelligence (AI) and Machine Learning (ML), noting that while specific guidance for AI and ML may be appropriate in some circumstances, this should be done only where necessary and where possible AI and ML should fit into existing policy frameworks.

Regulation IOSCO
19-Oct-2020

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
19-Oct-2020

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
16-Oct-2020

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
02-Oct-2020

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
01-Oct-2020

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
25-Sep-2020

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
16-Sep-2020

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
31-Aug-2020

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
28-Aug-2020

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
26-Aug-2020

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
25-Aug-2020

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
29-Jul-2020

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
14-Jul-2020

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
26-Jun-2020

Exemptions in ASIC Corporations (Derivative Transaction Reporting Exemption) Instrument 2015/844 expiring on 30 September 2020

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
16-Jun-2020

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
11-Jun-2020

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.

Regulation AEMC
22-May-2020

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
27-Apr-2020

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
21-Apr-2020

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
31-Mar-2020

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
25-Mar-2020

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 on 25 March.

Regulation ASIC
28-Feb-2020

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
28-Feb-2020

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
21-Feb-2020

Stamping Fee Exemption

AFMA made a submission in response to Treasury’s consultation on the Stamping Fee Exemption as it applies to listed investment entities. AFMA’s 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
16-Feb-2020

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
14-Feb-2020

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
07-Feb-2020

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
05-Feb-2020

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)
31-Jan-2020

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
20-Jan-2020

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
10-Jan-2020

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
Date Title & Summary Topic Area Sent to
31-Jan-2020

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
25-Mar-2020

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 on 25 March.

Regulation ASIC
21-Apr-2020

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
31-Mar-2020

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
06-Nov-2020

BCBS Principles for Operational Resilience

AFMA made a submission to the BCBS's proposed principles for operational resilience and provided comments in support of the principles-based approach. To enable industry to use technology to ensure operational resilience, AFMA also noted the role that financial regulators could play in supporting the industry with a compliance environment that assists with innovation and market competitiveness.

Basel Committee on Banking Supervision
14-Jul-2020

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
29-Jul-2020

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
07-Feb-2020

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
28-Feb-2020

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
16-Feb-2020

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
02-Nov-2020

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
06-Nov-2020

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
22-May-2020

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
16-Jun-2020

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
05-Feb-2020

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)
28-Aug-2020

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
19-Oct-2020

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
26-Jun-2020

Exemptions in ASIC Corporations (Derivative Transaction Reporting Exemption) Instrument 2015/844 expiring on 30 September 2020

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
14-Feb-2020

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
10-Jan-2020

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
20-Jan-2020

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
28-Feb-2020

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
11-Jun-2020

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.

Regulation AEMC
09-Nov-2020

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
16-Oct-2020

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
19-Oct-2020

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
26-Oct-2020

IOSCO consultation on the Use of Artificial Intelligence and Machine Learning by Market Intermediaries and Asset Managers

AFMA made a submission to IOSCO on the proposed measures that reflect expected conduct standards by market intermediaries and asset managers using Artificial Intelligence (AI) and Machine Learning (ML), noting that while specific guidance for AI and ML may be appropriate in some circumstances, this should be done only where necessary and where possible AI and ML should fit into existing policy frameworks.

Regulation IOSCO
01-Oct-2020

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
31-Aug-2020

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
02-Oct-2020

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
26-Aug-2020

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
25-Sep-2020

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
16-Sep-2020

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
21-Feb-2020

Stamping Fee Exemption

AFMA made a submission in response to Treasury’s consultation on the Stamping Fee Exemption as it applies to listed investment entities. AFMA’s 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
27-Apr-2020

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
25-Aug-2020

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
Date Title & Summary Topic Area Sent to
31-Jan-2020

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
25-Mar-2020

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 on 25 March.

Regulation ASIC
21-Apr-2020

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
31-Mar-2020

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
06-Nov-2020

BCBS Principles for Operational Resilience

AFMA made a submission to the BCBS's proposed principles for operational resilience and provided comments in support of the principles-based approach. To enable industry to use technology to ensure operational resilience, AFMA also noted the role that financial regulators could play in supporting the industry with a compliance environment that assists with innovation and market competitiveness.

Basel Committee on Banking Supervision
14-Jul-2020

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
29-Jul-2020

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
07-Feb-2020

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
28-Feb-2020

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
16-Feb-2020

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
02-Nov-2020

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
06-Nov-2020

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
22-May-2020

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
16-Jun-2020

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
05-Feb-2020

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)
28-Aug-2020

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
19-Oct-2020

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
26-Jun-2020

Exemptions in ASIC Corporations (Derivative Transaction Reporting Exemption) Instrument 2015/844 expiring on 30 September 2020

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
14-Feb-2020

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
10-Jan-2020

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
20-Jan-2020

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
28-Feb-2020

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
11-Jun-2020

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.

Regulation AEMC
09-Nov-2020

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
16-Oct-2020

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
19-Oct-2020

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
26-Oct-2020

IOSCO consultation on the Use of Artificial Intelligence and Machine Learning by Market Intermediaries and Asset Managers

AFMA made a submission to IOSCO on the proposed measures that reflect expected conduct standards by market intermediaries and asset managers using Artificial Intelligence (AI) and Machine Learning (ML), noting that while specific guidance for AI and ML may be appropriate in some circumstances, this should be done only where necessary and where possible AI and ML should fit into existing policy frameworks.

Regulation IOSCO
01-Oct-2020

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
31-Aug-2020

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
02-Oct-2020

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
26-Aug-2020

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
25-Sep-2020

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
16-Sep-2020

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
21-Feb-2020

Stamping Fee Exemption

AFMA made a submission in response to Treasury’s consultation on the Stamping Fee Exemption as it applies to listed investment entities. AFMA’s 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
27-Apr-2020

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
25-Aug-2020

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