Several financial regulations have come in place over the last few months to increase accountability as well as enhance consumer and investor protection. Most notably, there is the introduction of the Financial Accountability Regime (“FAR”) which will impose greater accountability obligations. The introduction of the Compensation Scheme of Last Resort (“CSLR”) as well as the banning of Binary options will aim to enhance consumer and individual protection by providing victims with compensation and preventing retail client losses accordingly. More so, it has been announced that cryptocurrencies will not be taxed as a foreign currency and the A New Tax System (Goods and Services Tax) Act 1999 and the Income Tax Assessment Act 1997 will be amended…

important considerations

It’s interesting to note that there has been a shift in regulator efforts to better focus on key principles of fairness, honesty, and accountability at both the large scale and individual level. As such, FAR will be operated by ASIC and APRA to hold relevant parties accountable. Further, the CSLR and the banning of binary options will endeavour to protect investor and consumer interests. Lastly, cryptocurrency is not to be taxed and will be reflected as such in the relevant legislation.

The intention of the update is to strengthen consumer and investor protections, and ensure principles-based regulation e.g, increases in the legislation of rule requirements like ‘integrity’ and ‘fairness’, and personal accountability.

For more information, and any guidance or advice on Australian regulator changes in the financial services sector, Cleveland & Co, your External in-house counsel, are here to help.

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