ASIC continues requirements review for AFSLs
The financial services regulator is continuing its review of financial requirements for product issuers in various sectors of the industry, with a number of consultation papers in the works.
The Australian Securities and Investments Commission (ASIC) has already consulted on revised financial requirements for responsible entities of registered managed investment schemes, and has just released a consultation paper applying to electricity market participants.
Furthermore, ASIC is currently finalising revised financial requirements for issuers of retail over-the-counter derivatives.
"We want to ensure Australian Financial Services Licensees make adequate provision for expected expenses and carry sufficient financial resources to mitigate against operational risk that could lead to unexpected loses or expenses," said ASIC chairman Greg Medcraft.
The purpose of the broader review is to ensure that the Australian Financial Services Licensees have sufficient financial resources to conduct their business in compliance with the Corporations Act.
However, the regulator does not seek to prevent these businesses from failing or becoming insolvent due to the fact that ASIC is not a prudential regulator.
Recommended for you
Digital advice tools are on the rise, but licensees will need to ensure they still meet adviser obligations or potentially risk a class action if clients lose money from a rogue algorithm.
Shaw and Partners has merged with Sydney wealth manager Kennedy Partners Wealth, while Ord Minnett has hired a private wealth adviser from Morgan Stanley.
Australian investors are more confident than their APAC peers in reaching their financial goals and are targeting annual gains of more than 10 per cent, according to Fidelity International.
Zenith Investment Partners has lost its head of portfolio solutions Steven Tang after 17 years with the firm, the latest in a series of senior exits from the research house.
