Submissions - 2024

Date Title & Summary Topic Area Sent to

Australian Cyber Security Strategy: Legislative Reforms

AFMA's submission commended the Government's work in developing this strategy. However, plans to include regulators in the information loop  may, when combined with the statutory obligations of company officers, fatally compromise the ability of firms to freely share information with the Cyber Coordinator and ASD. AFMA also noted that international firms will often face limitations on the information they can share based on regulatory and other requirements in their home jurisdiction. 

Regulation Department of Home Affairs

Feedback regarding ARS 117.0 Repricing analysis

AFMA highlighted in its submission that further clarity was needed on APRA's overarching data and reporting plans. Specifically, AFMA recommended that APRA amend item 6 to be clear that it applies only to non-SFI ADIs.  AFMA supported proposals to further aggregate some products to the extent these remain aligned to EFS reporting. AFMA also encouraged APRA to be mindful of any divergence in product granularity to the EBA implementation of the Basel standard. 

Regulation APRA

Treasury Laws Amendment (Better targeted Superannuation Concessions and Other Measures) Bill 2023 Schedule 7 Licensing exemptions for foreign financial services providers

AFMA's submission included  technical comments that would better facilitate the provision of services to Australian clients by FFSPs where the regulatory benefit does not outweigh the costs to FFSPs which could impact on their decision whether to service the Australian market, including a professional investor exemption.

Regulation Senate Standing Committees on Economics

Targeted changes to ADI liquidity and capital standards

AFMA made specific recommendations to APRA to consider a range of policy solutions to the value of HTM assets.  The submission recommended that APRA engage with industry regarding the potential impacts of asymmetric recognition of liquid asset valuation changes and provide greater clarity on how such changes are to be calculated, toegether with clarity on the applicability of Exceptional Liquidity Assistance for Foreign ADIs and how Foreign ADIs should use the data request template.  

Regulation APRA

Financial Market Infrastructure (FMI) Regulatory Reforms – Exposure Draft consultation

AFMA broadly views the package of FMI reforms as sensibleand the establishment of a crisis management regime is a reasonable precautionary step. The additional step-in powers for the RBA are necessary in the context of such a regime, and the increased clarity around ASIC’s licencing and supervisory powers around overseas clearing and settlement facilities that provide services in Australia was noted as a positive development.

Regulation Treasury

Climate-related financial disclosure: exposure draft legislation

AFMA broadly supported the direction and framework that the Government has set for Australia on sustainable finance. AFMA however raised its concern around modified liability, forward-looking statements, statements made outside a sustainability report, 3-year immunity to apply to each reporting group and Directors' Declaration. 

Regulation Treasury

Payments System Modernisation: Regulation of payment service providers

AFMA is broadly supportive of the proposed approach to payments reform, and sees the project itself as an important one in updating arrangements. However, AFMA considers that the proposed approach of regulating the issuance and redemption functions as financial products and not the PSCs themselves could work to create such an outcome depending on the details of the regulatory implementation. AFMA also recommended that the drafting make clear that the threshold is to apply only for SVFs balances within the Australian jurisdiction.

Regulation Treasury

NSW Renewable Fuel Scheme- Rule 1 consultation paper

AFMA supports the proposed expansion but believes that NSW should delay the RFS start until a wider range of renewable fuels can be included. AFMA also recommended that the NSW Government maintain alignment between the RFS to the GO and REGO schemes as they all develop.

Regulation NSW Office of Energy and Climate Change

Orderly Exit Management

AFMA highlighted that a mechanism to ensure the orderly exit of coal fired generation is necessary to provide the market with the certainty it needs to support the transition to net-zero. The proposed mechanism provides short term certainty about the closure of coal plants but does not provide the medium to long term certainty required for new investment. AFMA also believes that financial contracts purchased by government under the OEM should be offered to the market to boost liquidity and recover some of the cost of the OEM.

Regulation Energy and Climate Change Ministerial Council

Scams – Mandatory Industry Codes

AFMA  stated its position that the ADIs that should be subject to the Mandatory Code are only those that are authorised by APRA to provide services to retail customers. 

Regulation Treasury

AFMA 2024/25 Pre-Budget Submission

AFMA made a number of specific recommendations but highlighted the importance of a fit and proper consultation process, competitive business settings, prioritising the attractiveness of Australia as a financial centre and supporting a smooth transition to net zero. 

Regulation Treasury

Review of the Form of the Reliability Standard and APC – Directions Paper

AFMA's submission supported the Reliability Panel’s decision to shortlist two approaches to APC and given the current proposals for increases to Market Price Cap (MPC), AFMA considered that there may be value in considering linking APC to MPC and recommended as such. 

Regulation AEMC