Highlights court enforceable undertakings as flexible enforcement tool for compliance.
AST ASIC will only use court enforceable undertakings where it is in the public interest.
Offenders should be held accountable for poor conduct, and be publicly acknowledged.
Superannuation Trustee Issues
Performance: focus on communications around performance by trustees who recently failed APRA’s performance test; ASIC will intervene to achieve corrective disclosure or take enforcement action where misleading or deceptive conduct is identified.
Distribution: Consumers should get suitable products, and not be misled or ill-advised.
Proactively surveilling industry; enforcement action likely where trustees found to be breaching the law and not acting in good faith, or where conduct causes actual harm.
Retirement focus: trustees must challenge themselves to focus on overall retirement needs of their members, not just the accumulation of a superannuation balance.
AST ASIC working on forecast tools and consumer information to assist trustees.
Decentralized Autonomous Organizations (DAOs)
Organizations governed by artificial intelligence in form of smart contracts, using blockchain technology to record transactions with/between members and third parties.
No boards of directors or employees; rules of engagement encoded in smart contracts.
Not clear who is accountable if things go wrong, or don’t go as intended or anticipated.
Nor is it clear how a DAO itself can be held accountable in a court of law; legal analysis of how DAOs work is in its early stages, with many unanswered questions.
Crypto assets, cryptocurrencies driven by extraordinary consumer/investor demand.
Few can say they really understand them; consumers should approach with caution.
ASIC has provided some guidance on exchange traded funds linked to crypto-assets.
They at least are financial products, and traded on a licensed exchange, so there will be some protections there; for the most part, investors are on their own for now.
Australia’s largest bank is proposing a means of crypto-exposure for retail customers.
Only a pilot project, but it seems no longer on fringes of the financial services industry.
Technology underpinning changes brings many potential opportunities and benefits.