On 8 December 2023, the Australian Treasury released the Second Consultation Paper on “Payments System Modernization: Regulation of Payment Service Providers” that provides some further details on the proposed broadening of the licensing and regulatory framework for payment service providers. This follows the Treasury’s initial consultation conducted in June earlier this year.
ASIC Corporations and Credit (Amendment) Instrument 2023/589 was registered on 17 October 2023 to amend ASIC Corporations and Credit (Breach Reporting – Reportable Situations) Instrument 2021/716. The amendments modify the current reportable situations regime applicable to Australian financial services licensees and Australian credit licensees and apply from 20 October 2023.
The Government has released exposure draft legislation to update the Payments Systems (Regulation) Act 1998 (PSRA). This follows consultation conducted in June 2023 to “modernize” the application of the PSRA and to ensure the framework appropriately regulates emerging and future payment functions.
For the fourth time since its inception in September 2016, the Australian Securities and Investments Commission (ASIC) has extended the transitional relief period for Foreign Financial Services Providers (FFSPs) for a further 12 months until 31 March 2025. In its introduction of the ASIC Corporations (Amendment) Instrument 2023/588 on 4 August 2023, FFSPs have been offered a further extension on relief from the requirement to hold an Australian financial services license when providing certain financial services.
In this edition of Bite-size Briefings, we take a bite-size look at the latest developments concerning AI regulation as it affects financial services in Australia, the EU, Hong Kong SAR, Thailand, the UK and the US.
In announcing its Strategic Plan for Australia’s Payments System, Treasury has provided the clearest direction to date on how it plans to modernize and revamp the regulatory framework for payments in Australia. It outlines the Australian Government’s key priorities and initiatives for modernizing and regulating payments systems in coming years. This announcement follows a very broad consultation on its strategic plan and a number of reviews undertaken in this space.
By 29 February 2024, all Australian financial services licensees that provide financial services to retail clients and Australian credit licensees must for the first time submit internal dispute resolution (IDR) data reports to ASIC covering the six month reporting period 1 July to 31 December 2023.
In brief The assistant Treasurer and Minister for Financial Services Minister Stephen Jones addressed the annual Responsible Lending & Borrowing Summit in Sydney. His speech is available here. His speech announced that Buy Now, Pay Later (BNPL) payment arrangements will be regulated as credit and enforced by the Australian Securities and…
The Australian Securities and Investments Commission has provided updated guidance on the updated breach reporting regime applicable to Australian Financial Services Licensees and Credit Licensees. ASIC’s updated guidance is set out in a new version of Regulatory Guide 78, ‘Breach Reporting by AFS Licensees and Credit Licensees’ (RG 78), published 27 April 2023.
The Federal Court’s recent decision in Australian Securities and Investments Commission (ASIC) v Scholz (No 2) [2022] FCA 1542 has important implications for those who discuss financial products and services on social media platforms. Handed down on 20 December 2022, the Court’s judgment heralds a warning that social media ‘finfluencers’ may be considered to be carrying on a financial service business and thus are required to have an Australian Financial Services License.