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CLIENT MONEY RULES – ‘X’ MARKS THE OBLIGATIONS. 02 Oct 2020
Australian Financial Services (AFS) licensees holding client money are on ASIC’s radar, with a particular focus on intermediaries demonstrating high financial risk or stress. This follows two recent cases where AFS licensees faced criminal prosecution for breaching client money provisions.  ..
REGULATORY RESPONSE: CHANGES TO INTERNAL DISPUTE RESOLUTION REQUIREMENTS. 29 Sep 2020
ASIC released its new Regulatory Guide (RG 271) on complaints handling and dispute resolution standards and requirements on 30 June 2020. RG 271 replaces the existing RG 165 and takes effect for complaints received from 5 October 2021 on. In the latest blog (https://www.finity.com.au/2 ..
CREDIT WHERE CREDIT IS DUE – YOUR DESIGN AND DISTRIBUTION OBLIGATIONS. 22 Sep 2020
The Design and Distribution Obligations (DDO) have received a lot of attention lately, but did you know that they apply to credit products? Different obligations apply depending on whether you’re a product issuer or product distributor. When do the DDO apply? The DDO were d ..
PLAYING CHICKEN: THE MYTH OF CONFLICTED REMUNERATION LOOPHOLES. 08 Sep 2020
Conflicted remuneration is currently under the microscope and ASIC is taking action against those who try to use loopholes to avoid the prohibition. In this blog, we look at a current case study and explain why this is a risky strategy. The facts of the case ASIC is suin ..
ISSUING MCI SECURITIES: PRACTICAL LEARNINGS 12 MONTHS ON. 04 Sep 2020
Last year innovative and landmark reforms were introduced that gave companies limited by guarantee the ability to raise capital by issuing mutual capital instruments ( MCIs) without risking their status as a mutual. You can see our earlier blog on the legislative changes here (https://www. ..
REGULATORY RESPONSE: PRODUCT INTERVENTION POWER. 14 Aug 2020
ASIC’s Product Intervention Power (PIP) commenced on 6 April 2019 and was intended to reduce the risk of significant detriment to retail clients from financial products. In the latest blog (https://www.finity.com.au/2020/08/14/product-intervention-power-the-smart-bomb-in-asics-arsenal) in our Re ..
START-UPS: TRICKS AND TRAPS FOR STAGE 1 OFFER AND NEGOTIATIONS 11 Aug 2020
The preliminary offer and negotiation stage is pivotal for any start-up in merger or trade sale talks. There are some tricks and traps at this stage but you can avoid them if you know what to expect. TRAP: Don’t place undue reliance on the NDA Often the first step in a deal is sign ..
7 STAGES FOR START-UP TRANSACTIONS. 27 Jul 2020
The transaction pathway for start-ups is often protracted, time consuming and costly. So it’s good to map out the process at the outset and stick to it. Whether your deal is a merger or trade sale, the approach is often the same and can be broken into 7 key stages. Stage 1: Offer and negoti ..
HISTORY REPEATS – THE RISKS OF INADEQUATE DUE DILIGENCE. 21 Jul 2020
Exposure to historical non-compliance can be fatal for purchasers but many don’t include it in their due diligence. ASIC is on the warpath and you can be liable even if you weren’t operating the business at the time of the non-compliance. So before you purchase a business that holds an Australia ..
ARE MANAGED ACCOUNTS IN CONFLICT WITH STANDARD 3? 13 Jul 2020
Standard 3 of the FASEA Code of Ethics (Standard 3) purports to eliminate conflicts. But for advisers who use managed accounts, it creates a whole new conflict – a conflict between Standard 3 and established law and regulatory policy. Standard 3 and managed accounts Standard 3 is  ..
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