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PwC Regulatory Update
February 2019
PwC 2
Contents
PwC Regulatory Update
3Legislative/Government
developments
8What have
the regulators been up to?
12Industry bodies
14Overseas
developments
21PwC publications
26Contacts
Legislative/Government developments
PwC 4
1. Legislative/Government developments
PwC Regulatory Update
Legislative/
Government
developments
Overseas
developments
What have
the regulators
been up to?
PwC
publicationsContacts
Industry
bodies
Royal Commission into Misconduct in the Banking, Superannuation and
Financial Services Industry
The Government has released Commissioner Hayne’s final report, which
contains the results of his inquiry into Misconduct in the Banking,
Superannuation and Financial Services Industry. The report outlines 76
recommendations, which the Government has committed to implement.
Source: Royal Commission
PwC has released a report, Resetting standards – now for the industry to
deliver, providing perspectives and insights on the Royal Commission Final
Report.
Source: PwC
Responding to the final report, The Australian Prudential Regulation Authority
(APRA) stated its intention to implement the recommendations expeditiously. Of
the 76 recommendations there are 10 requiring APRA’s direct attention.
Source: APRA
The Financial Services Council (FSC) viewed the release of the final report as
an opportunity to begin repairing the sector’s damaged reputation.
Source: FSC
Recommendations from the final report to strengthen the accountability and
effectiveness of regulators were welcomed by the Customer Owned Banking
Association (COBA), particularly the:
• New, independent oversight authority for APRA and the Australian Securities
Investment Commission (ASIC); and
• Regular capability reviews of APRA and ASIC.
Source: COBA
Final Productivity Commission report into superannuation
The final report by the Productivity Commission into the efficiency and
competitiveness of Australia's superannuation system has been released. The
report found that while the superannuation system has served Australians
reasonably well, there are significant issues within Australia’s superannuation
system, including:
• The prevalence of high fees;
• A significant number of unintended multiple accounts;
• Chronic underperformance by some funds; and
• A lack of effective competition particularly in the default fund system.
The Commission has outlined 31 recommendations to improve the
superannuation system.
Source: Treasury
PwC 5
1. Legislative/Government developments (cont’d)
PwC Regulatory Update
Recent consultations
The Government has released a consultation paper; Stage Two of the
Retirement Income Framework, and is seeking views on a proposed
standardised document that outlines key metrics and features to help
consumers compare different retirement income products.
Submissions are due by 28 March 2019.
Source: Treasury
The Consultation process for Superannuation Contributions Tax regulations has
been completed by the Government. An Exposure draft, and supporting
material, have been released to replace the existing Regulations, which are due
to expire on 1 April 2019. Only minor technical changes have been made to
reflect current drafting practice and remove redundant references without
altering the substantive meaning or operation of the existing Regulations.
Source: Treasury
Two bills implementing the tax and regulatory components of the CCIV regime
have been released by the Government for public consultation. The proposed
new law includes:
• The new Chapter 8B in the Corporations Act 2001 containing the core
provisions outlining the establishment of CCIVs and their operational and
regulatory requirements;
• Amendments to other legislation to support the implementation of CCIVs;
and
• The tax legislations, which ensures the tax treatment of CCIVs broadly
aligns with the existing treatment of attribution management investment
trusts.
Submissions are due by 28 February 2019.
Source: Treasury
The Government has released for public consultation an exposure draft of the A
New Tax System (Goods and Services Tax) Regulations 2019 and the Treasury
Laws Amendment (Goods and Services Tax) Regulations 2019 and explanatory
to replace the existing GST Regulations, which are due to sunset in April 2019.
The regulations are only being changed to the extent needed to ensure the
existing rules remain operational and the drafting is in line with current practice.
Source: Treasury
Legislative/
Government
developments
Overseas
developments
What have
the regulators
been up to?
PwC
publicationsContacts
Industry
bodies
PwC 6
1. Legislative/Government developments (cont’d)
PwC Regulatory Update
ASIC Industry Funding Model and Registry Search Fees
The consultation process has begun for the draft Treasury Laws Amendment
(ASIC Cost Recovery and Fees) Regulations 2019. The purpose of the draft
Regulations is to give effect to Government announcements to:
• Create a new subsector to enable ASIC to recover its regulatory costs
incurred from its close and continuous monitoring of Australia’s largest
institutions;
• Exempt journalists from paying certain registry search fees from 1 July 2019;
• Reduce the fee to access company roles and relationship extracts from $40
to $19 from 1 July 2019; and
• Make other minor amendments to the Levy and Fees Regulations to ensure
ASIC’s regulatory costs are more accurately reflected.
Source: Treasury
Introduction of the Consumer Data Right (CDR)
In line with the recommendations of the Review into Open Banking in Australia,
Treasury has prepared a first version of the Privacy Impact Assessment (PIA)
for the CDR, in accordance with the Privacy (Australian Government Agencies
– Governance) APP Code 2017. The draft documents the learnings and
outcomes from extensive consultation on privacy risks associated with
introducing consumer data access and portability rights. A revised PIA,
incorporating the views of the public as well as key decisions on the Consumer
Data Rules and standards, will be completed ahead of the Autumn
Parliamentary sitting period.
Source: Treasury
Legislative/
Government
developments
Overseas
developments
What have
the regulators
been up to?
PwC
publicationsContacts
Industry
bodies
PwC 7
1. Legislative/Government developments (cont’d)
PwC Regulatory Update
Transparency and enhanced disclosure practices in the General
Insurance sector
A discussion paper, Disclosure in General Insurance: Improving Consumer
Understanding has been released by the Government in response to the Senate
Economic References Committee’s report into the general insurance industry.
This paper is requesting the views of interested stakeholders on the underlying
issues and objectives behind the recommendations made in the Senate report.
Submissions are due by 28 February 2019.
Source: Treasury
Government consults on extending the tax regulations as they relate to
mutually-owned authorised deposit taking institutions (ADIs)
The Government has release an exposure draft of the Treasury Laws
Amendment (2019 Measures No. #) Regulations 2019 for public consultation.
The draft regulations propose to rectify the different treatment of capital
instruments issued by mutually-owned ADIs by extending the operation of tax
regulation to ensure equivalent treatment between capital instruments.
Source: Treasury
Government consults on a reporting regime for sharing economy platform
providers
Responding to the Black Economy Taskforce recommendation for a sharing
economy reporting regime, the Government has released a consultation paper;
A sharing economy reporting regime. This paper is seeking the views of
interested stakeholders on the possible design characteristics of a reporting
regime, including the scope of proposed information reporting requirements.
Source: Treasury
Government requests feedback of review into Initial Coin Offerings (ICOs)
An Issues Paper; Initial Coin Offerings (ICO), has been released for
consultation. Interested parties are invited to provide feedback on any of the
issues raised in the paper, including:
• Opportunities and risks posed by ICOs for Australia;
• A regulatory framework in Australia to allow those opportunities to be
harnessed while appropriately managing the associated risks; and
• Actions to be taken to best position Australia to capitalise on new
opportunities.
Submissions are due by 28 February 2019.
Source: Treasury
Legislative/
Government
developments
Overseas
developments
What have
the regulators
been up to?
PwC
publicationsContacts
Industry
bodies
What have the regulators been up to?
PwC 9
2. What have the regulators been up to?
PwC Regulatory Update
The Australian Prudential Regulation Authority (APRA) finalises new
measures to strengthen outcomes for superannuation members
APRA has released a package of new and enhanced prudential requirements
designed to strengthen the focus of registrable superannuation entity (RSE)
licensees on the delivery quality outcomes for superannuation members. The
package includes:
• SPS 515 - Strategic Planning and Member Outcomes;
• SPS 220 - Risk Management;
• SPG 515 - Strategic and Business Planning; and
• SPG 516 - Outcomes assessment.
The introduction of an outcomes assessment is a central component of APRA’s
new framework. The assessment requires RSE licensees to annually
benchmark and evaluate their performance in delivering sound and valuable
outcomes to all members.
The new measures will be effective from 1 January 2020.
See: media release
APRA will remove interest-only benchmark for residential mortgage
lending
In a letter to all Authorised Deposit-Taking Institutions (ADIs), APRA has stated
its intention to remove the supervisory benchmark on interest-only lending, for
ADIs that have provided assurances on the strength of their lending standards.
The benchmark was put in place only as a temporary measure, in 2017, to
reduce the level of interest-only lending and improve the quality of mortgage
portfolios.
See: APRA
Legislative/
Government
developments
Overseas
developments
What have
the regulators
been up to?
PwC
publicationsContacts
Industry
bodies
APRAAustralian Prudential Regulation
Authority
ASICAustralian Securities and Investments
Commission
AUSTRACAustralian Transaction Reports and
Analysis Centre
ASXAustralian Securities Exchange
PwC 10
2. What have the regulators been up to? (cont’d)
PwC Regulatory Update
Recent Consultations
The Australian Securities & Investments Commission (ASIC) is seeking
feedback on proposed changes to the fees and costs disclosure regime for
management investment schemes and superannuation outlined in consultation
paper, Review of RG 97 Disclosing fees and costs in PRSs and periodic
statements. The paper includes a proposed updated regulatory guide,
Disclosing fees and costs in PDSs and periodic statements (RG 97), and draft
amendments to Schedule 10 of the Corporations Regulations.
Submissions are due by 2 April 2019.
Recent reports
ASIC has released research exploring the consumer experience of internal
dispute resolution (IDR) procedures across the financial services sector. The
research highlighted the difficulties people face in approaching and navigating
the complaints process.
A report, Allocations in equity raising transactions, has been released by ASIC.
The report details the findings of ASIC’s review of allocations in equity raising
transactions across a range of large and mid-sized Australian-based licensees.
The report makes recommendations on improvements to licensee practices in
the conduct of allocations.
Recent key updates
The Global Financial Innovation Network (GFIN) was launched in January 2019
by an international group of financial regulators and related organisations,
including ASIC. The GFIN intends to provide a more efficient way for innovative
firms to interact with regulators, helping them navigate between countries as
they look to scale new ideas.
Since 1 January, 2019 new professional standards requirements for financial
advisers have been progressively replacing training standards in Licensing:
Training of financial product advisers (RG146). New entrants to the industry
seeking to become a relevant provider will need to meet the new professional
standards requirements.
Legislative/
Government
developments
Overseas
developments
What have
the regulators
been up to?
PwC
publicationsContacts
Industry
bodies
APRAAustralian Prudential Regulation
Authority
ASICAustralian Securities and Investments
Commission
AUSTRACAustralian Transaction Reports and
Analysis Centre
ASXAustralian Securities Exchange
PwC 11
2. What have the regulators been up to? (cont’d)
PwC Regulatory Update
The ASX consults on 90 Day Bank Bill Futures contract changes
The ASX has released a consultation paper, ASX 90 Day Bank Bill Futures
Contract Changes, seeking feedback from market participants on the following
proposed changes to the Bank Bill futures contract:
• Change to the settlement process to make the contract cash settled at
expiry;
• Application of expiry position limits;
• Reduction in the minimum price increment for specific bank bill futures
months;
• Increase to the maximum allowable order size;
• Listing of serial bank bill futures; and
• Development of Good Till Cancelled (GTC) spread order functionality.
Submissions are due by 30 April 2019.
See: media release
Legislative/
Government
developments
Overseas
developments
What have
the regulators
been up to?
PwC
publicationsContacts
Industry
bodies
AUSTRAC will reform the superannuation sector with new guidance
AUSTRAC has published guidance to assist reporting entities in the
superannuation sector to:
• Better understand their obligations under the Anti-Money Laundering and
Counter-Terrorism Financing Act 2006 (AML/CTF Act);
• Identify risks and potential criminal actions arising from the conduct of
superannuation funds and their clients;
• Explain how these reporting entities can use their AML/CTF ‘toolkit’ to
mitigate the industry-specific money laundering and terrorism financing
(ML/TF) risks they face.
See: media release
APRAAustralian Prudential Regulation
Authority
ASICAustralian Securities and Investments
Commission
AUSTRACAustralian Transaction Reports and
Analysis Centre
ASXAustralian Securities Exchange
Industry bodies
PwC 13
3. Industry bodies
PwC Regulatory Update
Professional associations announce a landmark code monitoring
cooperation agreement
The Financial Planning Association of Australia (FPA), along with five other
professional associations representing the financial planning/advice sector,,
have signed a cooperation agreement to develop a code monitoring solution for
their members.
The code monitoring compliance scheme application will be submitted to ASIC
and aims enable compliance with the Financial Adviser Standards and Ethics
Authority (FASEA) code of ethics to be monitored and enforced.
A special purpose company, Financial Advisers Monitoring Scheme (FAMS),
has been established to operate the compliance scheme.
See: media release
FSC consults on rebuild consumer code
The Asian Region Funds Passport (ARFP), a multilateral framework which
allows eligible managed funds to be marketed to retail investors across
participating countries, has become operational from 1 February 2019. The
current signatories to the ARFP are Australia, Japan, New Zealand, South
Korea and Thailand.
See: media release
FASEAFinancial Adviser Standards and Ethics Authority
FPAFinancial Planning Association of Australia
FSCFinancial Services Council
Legislative/
Government
developments
Overseas
developments
What have
the regulators
been up to?
PwC
publicationsContacts
Industry
bodies
Overseas developments
PwC
4. Overseas developments – Global
BIS: Recent report
The Basel Committee on Banking Supervision
(BCBS) has published a report; Cyber-resilience:
range of practices, which identifies, describes and
compares the range of observed bank, regulatory
and supervisory cyber-resilience practices across
jurisdictions.
Source: BIS
BIS: Recent announcements
The BCBS has released an updated Pillar 3
disclosure requirements, endorsing market
discipline through regulatory disclosure
requirements in the following areas:
• Credit risk, operational risk, the leverage ratio
and credit valuation adjustment risk;
• Risk-weighted assets (RWAs); and
• An overview of risk management, RWAs and
key prudential metrics.
Source: BIS
The BCBS has released a consultation paper,
Revisions to leverage ratio disclosure
requirements, seeking feedback on revisions to
leverage ratio Pillar 3 disclosure requirements to
further include:
• Mandatory disclosure of the leverage ratio
exposure measure amounts of securities
financing transactions;
• Derivatives replacement cost; and
• Central bank reserves calculated using daily
averages over the reporting quarter.
Submissions are due by 13 March 2019.
Source: BIS
IOSCO: Recent announcements
The Board of the International Organisation of
Securities Commissions (IOSCO) has released a
report, IOSCO Report on Good Practices for Audit
Committees in Supporting Audit Quality, to assist
audit committees in promoting and supporting
audit quality.
The report has offered best practices to help audit
committees in the following set of tasks:
• Recommending the appointment of an auditor;
• Assessing potential and continuing auditors;
• Setting of audit fees;
• Facilitating the audit process;
• Assessing auditor independence;
• Communicating with the auditor; and
• Assessing audit quality.
Source: ISOCO
15
PwC Regulatory Update
Legislative/
Government
developments
Overseas
developments
What have
the regulators
been up to?
PwC
publicationsContacts
Industry
bodies
PwC
4. Overseas developments – Europe
EBA: Recent guidelines
The European Banking Authority (EBA) has
released its final guidelines about different kinds
of exposures associated with high risk under the
Capital Requirements Regulation (CRR). The
guideline would enable current practices
comparability and facilitate easy transition to the
upcoming regulatory revisions .
Source: EBA
The EBA has published final guidelines on the
simple, transparent and standardised (STS)
criteria for the securitisation on a cross sectoral
basis. The guidelines will help in easy
interpretation of the STS criteria and common
understanding for all the parties involved.
Source: EBA
The EBA has released its final guidelines on
disclosure of non-performing and forborne
exposures. The disclosure will help to provide a
clear picture of the quality of the banks' assets,
the main features of their non-performing and
forborne exposures, and the distribution of the
problematic assets and the value of the collateral
backing those assets in case of more troubled
banks.
Source: EBA
EBA: Recent announcements
The EBA sought feedback on its consultation to
amend the Commission's Implementing
Regulation on benchmarking of internal models to
adjust the benchmarking portfolios and reporting
requirements. The amendments aim to simplify
the portfolio's structure for the credit risk part and
gaining more insights into the market risk pricing
model of benchmarking exercise to be carried out
in 2020 .
Source: EBA
The European Supervisory Authorities (ESAs)
has published a joint report on innovation
facilitators (regulatory sandboxes and innovation
hubs). The report presents a comparative
analysis of the innovation facilitators established
to date within the EU coupled with best practices
for the design and operation of innovation
facilitators.
Source: EBA
EBA: Recent announcements
The ESAs has published two joint draft
Regulatory Technical Standards (RTS) to
amend the RTS on the clearing obligation and risk
mitigation techniques for non-cleared OTC
derivatives not cleared by central counterparties
(CCPs). The amendments will provide a specific
treatment for simple, transparent and
standardised (STS) securitization to ensure a
level playing field with covered bonds for the
proper implementation of the European Market
Infrastructure Regulation (EMIR).
Source: ESMA
The EBA has published its report on the
applicability and appropriateness of EU law to
crypto-assets, examining the following key areas
in its respect:
• The application of current EU banking,
payments, e-money and anti-money
laundering laws to crypto-assets;
• Crypto-asset custodian wallet providers and
crypto-asset trading platforms; and
• Credit institutions, investment firms, payment
institutions and electronic money institutions'
activities involving crypto-assets and
regulatory and supervisory issues.
Source: EBA
16
PwC Regulatory Update
Legislative/
Government
developments
Overseas
developments
What have
the regulators
been up to?
PwC
publicationsContacts
Industry
bodies
PwC
4. Overseas developments – Europe
ESMA: Recent announcements
The European Securities and Markets Authority
(ESMA) has published its final report amending
the tick size regime. The amendments will allow
National Competent Authorities (NCAs) of
European Union (EU) trading venues to decide on
an adjusted average daily number of transactions
(ADNT) on a case-by-case basis for the liquidity
available on third country venues in the calibration
of tick sizes.
Source: ESMA
ESMA: Recent announcements
The ESMA has published its guidelines on initial
coin offerings and crypto-assets, providing its
position on any gaps and issues in the current EU
financial regulatory framework for consideration
by EU policymakers.
ESMA has identified a number of concerns while
conducting a survey of NCAs during 2018:
• Crypto assets qualified under Markets in
Financial Instruments Directive (MiFID) need
potential interpretation or re-consideration of
specific requirements to allow for an effective
application of existing regulations; and
• In cases where these assets do not qualify as
financial instruments, the investors are subject
to potential risks without proper financial rules
applicable.
Source: ESMA
EIOPA: Recent opinions
The European Insurance and Occupational
Pensions Authority (EIOPA) has published an
opinion on non-life cross-border insurance
business of a long-term nature and its
supervision. The Opinion is addressed to NCAs
and outlines EIOPA’s expectations to cross
border undertakings and recommendations to the
NCAs on the following aspects:
• Expectations on technical provisions with the
focus on the best estimate calculation;
• Expectations on governance, namely on the
key functions and the Administrative,
Management or Supervisory Body (AMSB);
and
• Recommendations on the supervisory review
process and the collaboration between home
and host NCAs.
Source: EIOPA
17
PwC Regulatory Update
Legislative/
Government
developments
Overseas
developments
What have
the regulators
been up to?
PwC
publicationsContacts
Industry
bodies
PwC
4. Overseas developments – UK
FCA: Recent consultations
The Financial Conduct Authority (FCA) is
consulting on cryptoassets guidance to provide
clarity to market participants regarding whether
their activities fall within the scope of the FCA’s
regulatory remit and related authorisation
requirements. It also states that tokens are likely
to be classified as:
• Specified Investments under the Regulated
Activities Order;
• Financial Instruments under the Markets in
Financial Instruments Directive II;
• E-Money under the E-Money Regulations; and
• Captured under the Payment Services
Regulations.
Submissions are due by 5 April 2019.
Source: FCA
FCA: Recent consultations
The FCA is seeking feedback on its proposals to
change the ways banks and building societies
charge for overdrafts (CP18/42) and extends
protection to customers of home-collected credit,
catalogue credit, store card and buy now pay later
offer sectors (CP18/43).
Submissions are due by 18 March 2019.
Source: FCA
PRA: Recent consultations
The Prudential Regulation Authority (PRA) has
released a consultation paper, Credit risk
mitigation: Eligibility of financial collateral, seeking
feedback on proposed changes to Supervisory
Statement Credit risk mitigation (SS17/13). It aims
to clarify expectations regarding the eligibility of
financial collateral as funded credit protection
under the Capital Requirements Regulation.
Submissions are due by 10 April 2019.
Source: Bank of England
The PRA is seeking feedback on proposed rules
for UK banks and building societies with £50
billion or more in retail deposits on an individual or
consolidated basis, to assess the preparations for
resolution, submit a report of their assessment to
the PRA, and publish a summary of their report.
Its purpose is to ensure firms that pose a high risk
to the UK’s financial stability are resolvable by
2022 and increase firms’ accountability &
ownership of progress.
Submissions are due by 5 April 2019.
Source: Bank of England
18
PwC Regulatory Update
Legislative/
Government
developments
Overseas
developments
What have
the regulators
been up to?
PwC
publicationsContacts
Industry
bodies
PwC
4. Overseas developments – UK
CFTC: Recent announcements
The Commodity Futures Trading Commission
(CFTC) has released an amended order to allow
additional Multilateral Trading Facilities (MTFs)
and organised trading facilities to be exempted
from the Swap Execution Facility (SEF)
registration requirement with the CFTC.
Source: CTFC
The CFTC is seeking feedback on the underlying
technology, opportunities, risks, mechanics, use
cases, and markets for virtual currencies beyond
Bitcoin, namely Ether and its use on the Ethereum
Network.
Source: CFTC
OCC: Recent consultations
The Office of the Comptroller of the Currency
(OCC) has requested feedback on its proposed
rule to amend their stress testing requirements for
national banks and Federal savings associations.
The proposed rule would:
• Revise the minimum threshold for national
banks and Federal savings associations to
conduct stress tests from $10 billion to $250
billion;
• Revise the frequency of stress testing for
national banks and Federal savings
associations; and
• Reduce the number of required stress testing
scenarios from three to two.
Source: OCC
The five Federal financial regulatory agencies are
seeking feedback on a proposal to exclude certain
community banks from the Volcker rule,
consistent with the Economic Growth, Regulatory
Relief, and Consumer Protection Act
(EGRRCPA). The agencies are jointly proposing
to exclude community banks with $10 billion or
less in total consolidated assets and total trading
assets and liabilities of 5 percent or less of total
consolidated assets from the rule restrictions.
Source: OCC
SEC: Recent announcements
The Securities and Exchange Commission (SEC)
is seeking feedback on proposed rules requiring
the application of risk mitigation techniques to
portfolios of uncleared security-based
swaps. The proposed changes include:
• Reconciling outstanding security-based swaps
with applicable counterparties on a periodic
basis.
• Engaging in certain forms of portfolio
compression exercises.
• Executing written security-based swap trading
relationship documentation with each of its
counterparties prior to, or contemporaneously
with, executing a security-based swap
transaction.
Source: SEC
19
PwC Regulatory Update
Legislative/
Government
developments
Overseas
developments
What have
the regulators
been up to?
PwC
publicationsContacts
Industry
bodies
PwC
4. Overseas developments – ASIA
HK: Recent announcements
The Securities and Futures Commission (SFC)
and the Commission de Surveillance du Secteur
Financier (CSSF) have entered into a
Memorandum of Understanding (MoU) on Mutual
Recognition of Funds, which will enable Hong
Kong public funds and Luxembourg Undertakings
for Collective Investment in Transferable
Securities (UCITS) to be distributed in each
other’s market. The MoU also establishes:
• A framework for exchange of information; and
• Regular dialogue and regulatory cooperation in
regards to the cross-border offerings of eligible
Hong Kong public funds and Luxembourg
UCITS funds.
Source: SFC
Korea: Recent announcements
The FSC announced follow-up measures for
capital market reform, including:
• New schemes of introducing a specialised
brokerage company to facilitate investment
into unlisted securities of SMEs and venture
companies; and
• Growing a pool of professional investors.
Source: FSC
The FSC announced its plans to improve the
Korea Next Exchange (KONEX) by:
• Facilitating fundraising by SMEs & venture
companies;
• Boosting liquidity in the KONEX market;
• Strengthening its role of nurturing SMEs &
venture companies; and
• Enhancing investors’ trust in the KONEX
market.
Source: FSC
Singapore: Recent announcements
The Monetary Authority of Singapore (MAS) has
issued a revised Singapore Code on Take-overs
and Mergers to clarify its application for dual class
share companies with a primary listing on the
Singapore Exchange. The key changes to the
Code are:
• Relief for shareholders who trigger a
mandatory general offer.
• Greater certainty for the market and
safeguards for minority shareholders.
Source: MAS
20
PwC Regulatory Update
Legislative/
Government
developments
Overseas
developments
What have
the regulators
been up to?
PwC
publicationsContacts
Industry
bodies
PwC publications
PwC
5. PwC publications
PwC AUS: Super snapshot: Assessing
efficiency and competitiveness
PwC AUS has issued a report, Super snapshot:
Assessing efficiency and competitiveness,
summarising the 31 recommendations proposed
for superannuation in the Productivity
Commission’s final inquiry report.
The report further discusses the additional
impacts on employers, administrators and
auditors in the industry.
See publication
PwC AUS: APRA’s Member Outcomes
Prudential Reforms – Our Perspectives
APRA released new prudential requirements on
12 December 2018 as part of Prudential Standard
SPS 515 Strategic Planning and Member
Outcomes (SPS 515).
Under the new requirements, trustees will need to
demonstrate that their strategic planning
processes meet APRA’s principles as well as
undertake an annual assessment of outcomes
delivered to members.
PwC AUS has issued a report, APRA’s Member
Outcomes Prudential Reforms – Our
Perspectives, highlighting the four main
requirements of the reforms and their subsequent
impacts.
See publication
PwC AUS: Regulatory Guide 132 –
Compliance and oversight
In response to ASIC issuing Regulatory Guide
132, PwC AUS has released a report, Regulatory
Guide 132 – Compliance and oversight, detailing
what the new regulatory guide means for industry
participants.
The key areas that responsible entities should
consider are:
• Compliance management systems (CMS);
• Compliance plans;
• Compliance committees;
• Compliance plan auditors; and
• Australian passport funds
See publication
22
PwC Regulatory Update
Legislative/
Government
developments
Overseas
developments
What have
the regulators
been up to?
PwC
publicationsContacts
Industry
bodies
PwC
5. PwC publications (cont’d)
PwC AUS: Summary of ASIC Consultation
Paper 308 on RG97
ASIC released Consultation Paper 308 on 8
January 2019 in relation to the independent
expert’s proposed amendments’ to Regulatory
Guide 97, Disclosing fees and costs in PDSs and
periodic statements (RG97).
PwC AUS has released a report, Summary of
ASIC Consultation Paper 308 on RG97, which
highlights the proposed amendments, key
observations and next steps.
See publication
PwC HK: Asset & wealth management 2025 -
The Asian awakening
PwC HK has released a report, Asset & wealth
management 2025 - The Asian awakening,
highlighting how the industry will be impacted by
changing people skills, fees, products, distribution
regimes, regulations and use of technology in
future. It brings out the following five key trends:
• Investor and regulatory scrutiny shifting power
to investors;
• Entry of younger generation of tech-savvy
investors;
• Passive strategies gaining favour over active
strategies;
• APAC asset and wealth managers acting as
the new financiers of infrastructure and real
estate projects; and
• Financial integration across developed
markets is driving the region to become more
cooperative and interconnected.
See: publication
PwC HK: Asset & wealth management tax
highlights – Asia Pacific
In the latest edition of asset and wealth
management tax highlights for the Asia Pacific
region, PwC HK has highlighted industry and tax
developments from Australia, China, Hong Kong
and India, which may impact asset and wealth
management businesses.
In Australia, regulations have been introduced to
update the list of Exchange of Information (EOI)
for 54 countries, which are now able to access the
concessional Managed Investment Trust (MIT)
withholding tax rate of 15% in respect of qualifying
MIT distributions.
Hong Kong has signed a bilateral Competent
Authority Agreement (CAA) on Automatic
Exchange of Financial Account Information
(AEOI) with Mainland China. To deepen the
financial cooperation between China and the UK
and to expand the opening up of China’s capital
market, a new investment scheme (the Shanghai-
London Stock Connect) will be launched in both
the Shanghai Stock Exchange and the London
Stock Exchange.
See: publication
23
PwC Regulatory Update
Legislative/
Government
developments
Overseas
developments
What have
the regulators
been up to?
PwC
publicationsContacts
Industry
bodies
PwC
5. PwC publications (cont’d)
PwC UK: CBI PwC Financial Services Survey
PwC UK has published a report, CBI PwC
Financial Services Survey – Q4 2018,
summarising the results from the survey of the UK
financial services sector covering questions on
business optimism, value and volume of
business, charges/costs and profitability,
employment and training, capital expenditure,
business prospects, regulation, growth,
competitiveness and financial market conditions.
Some of the key findings are as below:
• The financial services industry is undergoing
unprecedented change driven by innovation
and technology.
• Optimism in the financial services industry
decreased further in the fourth quarter of 2018.
• Top 5 challenges faced by financial services in
2019 are: macroeconomic uncertainty;
regulatory compliance; Brexit; financial market
instability and making better use of data to
improve customer experience and business
performance.
See: publication
PwC US: Current developments for mutual
fund directors
PwC US has published the latest edition of
Current developments for mutual fund directors:
Perspectives for management and the Board.
This edition includes featured articles on topics
affecting the mutual fund industry, including:
• Board composition – Key trends and
developments;
• Trends in mutual fund expenses: challenges
and opportunities ahead;
• PwC Liquidity Risk Management
benchmarking results; and
• Mutual fund tax function of the future.
See: publication
PwC US: How to make your analytics
functions more efficient and cost-effective
Analytics tools have long promised to help
executives make more informed business
decisions but many of these tools have been
ineffective due to the flood of new data and the
time required preparing and analysing it.
PwC US has published a report, Financial
intelligence - how to make your analytics
functions more efficient and cost-effective,
outlining how automation may help analytics tools
fulfill their intended output and decision-driven
role.
See: publication
24
PwC Regulatory Update
Legislative/
Government
developments
Overseas
developments
What have
the regulators
been up to?
PwC
publicationsContacts
Industry
bodies
PwC
5. PwC publications (cont’d)
PwC US: Financial Services deal insights -
year end 2018
PwC US has published a report, Financial
Services (FS) deal insights: Year-end 2018,
highlighting the 2018 activities and trends in
Banking Capital Markets, Insurance and Assets
and Wealth management sector. Some of the key
findings of the report are:
• The value of FS deals in 2018 rose above prior
year levels.
• The surge shows no signs of weakening in
2019 owing to digital disruption, market
volatility, and the clear gains from
consolidation.
• PwC expect corporate, venture, and private
equity to play a bigger role in acquisitions and
minority investments both inside and outside
the US.
See: publication
PwC US: IASB proposes to further amend
IFRS 17
The International Accounting Standards Board
(IASB) has proposed amendments to IFRS 17 to
better reflect the economics of insurance
contracts. The proposed amendments include:
• Requiring allocation of insurance acquisition
cash flows to anticipated future renewals;
• Requiring recognition of a gain in profit or loss
when an insurer recognises losses on onerous
underlying insurance contracts at initial
recognition, to the extent that a reinsurance
contract held covers the losses of each
contract on a proportionate basis;
• Expanding the scope for the risk mitigation
exemption for insurance contracts with direct
participation features to reinsurance contracts
held that are used to mitigate financial risk;
and
• Requiring consideration of the existence of an
investment return service in allocating the
CSM using coverage units.
PwC US has released a report; IASB proposes to
further amend IFRS 17, outlining the key points
from the proposal.
See: publication
25
PwC Regulatory Update
Legislative/
Government
developments
Overseas
developments
What have
the regulators
been up to?
PwC
publicationsContacts
Industry
bodies
Contacts
PwC 27
6. Contacts
PwC Regulatory Update
Nicole Salimbeni
Partner
Email: nicole.salimbeni@pwc.com
Tel: (02) 8266 1729
Edwina Star
Partner
Email: edwina.star@pwc.com
Tel: (02) 8266 4940
Amrita Jebamoney
Partner
Email: amrita.jebamoney@pwc.com
Tel: (02) 8266 1826
Sarah Hofman
Partner
Email: sarah.hofman@pwc.com
Tel: (02) 8266 2231
Craig Stafford
Partner
Email: craig.stafford@pwc.com
Tel: (02) 8266 3725
Legislative/
Government
developments
Overseas
developments
What have
the regulators
been up to?
PwC
publicationsContacts
Industry
bodies
www.pwc.com.au
Thank you
www.pwc.com.au
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