Monthly Newsletter - February

The past month at Sophie Grace...

New articles:

• How foreign financial services providers can provide services to Australian clients
• ASIC releases report on hardship for credit providers
• ASIC Record Keeping Obligations on Personal Advice AFSLs
• ASIC enforcement action: Claims handling and reportable breaches
• Updates to RG175 and new Info Sheet 291
• Reportable situations regime - ASIC Insights for 2023-24

New videos:

Navigating AML/CTF Programs

AUSTRAC AML/CTF Compliance Reports

Training Videos

Check out our Training Videos! Our videos are a way for you to get information regarding your licence type in an engaging and effective way. Averaging about 12 minutes long, each video will provide you with relevant knowledge and skills. Purchase individually or subscribe to gain access to all of our compliance-focused training videos!

How foreign financial services providers can provide services to Australian clients

An AFSL is generally required to carry on a financial services business in Australia. However, ASIC provides licensing relief and exemptions for Foreign Financial Services Providers (FFSPs) who wish to provide services to clients in Australia.

There are a number of pathways, but not all are currently open to new entrants:

1. Individual Relief (open)
2. New licensing exemptions for FFSPs (from 1 April 2025 and subject to passage of legislation)
3. Class-based sufficient equivalence relief (closed except for entities which relief on it prior to 1 April 2020)
4. Limited connection relief (open until 31 March 2026)
5. Standard AFSL (open)

Read more.

ASIC releases report on hardship for credit providers

A recent report by ASIC has implications for all credit providers.

ASIC has issued report 783 - Hardship, hard to get help: Lenders fall short in financial hardship support ("Report 783") after conducting a review of ten home lenders to understand how credit licensees are supporting customers experiencing financial hardship.

Key findings include:

1. Accessibility of hardship assistance
2. Simple processes for assessing hardship
3. Communicating effectively with customers
4. Supporting vulnerable customers

Read more.

ASIC Record Keeping Obligations on Personal Advice AFSLs

ASIC imposes specific record-keeping requirements on AFS Licensees and representatives of AFS Licensees that provide personal advice to retail clients under the Corporations Act 2001. ASIC requires AFS Licensees who provide personal advice to retail clients to keep records for a period of at least seven (7) years after the day advice was provided to the client to comply with best interests duty and related obligations.

The providers must ensure the following records are kept:

Read More.

ASIC enforcement action: Claims handling and reportable breaches

ASIC recently sued United Super Pty Ltd as Trustee of CBUS alleging that CBUS failed to:

• process death benefit and total and permanent disability ("TPD") claims made by its members within a reasonable time-frame;
• properly assess the delays encountered by the subcontractor responsible for processing the claims;
• take prompt and appropriate action when CBUS became aware of the delays; and
• properly identify the risks that its claim processing system posed to members and claimants.

Key Learnings:

Read More.

Updates to RG175 and new Info Sheet 291

The way financial advisers can give their clients a Financial Services Guide ("FSG") has been amended. These changes also apply to providers of general advice.

Essentially, financial advisers may give their clients a FSG or make the FSG information publicly available on their website - known as "website disclosure information".

Website disclosure information must comply with the following requirements:

Read More.

Reportable situations regime - ASIC Insights for 2023-24

ASIC has released its third report into the reportable situations regime, highlighting some key action items for Australian Financial Services and Credit Licensees. There were four key insights in the report:

1. Volume of reports and nature of lodgers
2. Subject of reports and root causes of breaches
3. Identification and investigation of breaches
4. Customer impact, remediation and rectification

Sophie Grace has put together key considerations and action items for Licensees. Read our blog article to learn more.

Read More.

New Video: Navigating AML/CTF Programs

If you are a financial service or credit provider that provides designated services - it's important to be aware of your obligations under the AML/CTF Act.

One of these obligations is that you are required to establish a written AML/CTF Program that addresses potential risks related to ML and TF.

Watch the video below to learn more.

Navigating AML/CTF Programs

Don't forget to subscribe to our channel so you don't miss out on our next video!

New video: AUSTRAC AML/CTF Reports

As a licensee, do you know your AUSTRAC reporting obligations? This video looks at:

• Information you need to provide in the AML/CTF Compliance Report
• How to submit the AML/CTF Compliance Report
• What happens if you fail to submit the report on time

Watch Here.

Lean more about these other useful topics at the below links.

AFSL Holders

• How do I know who my current RMs are?
• What things must be on your website?
• Wholesale Client Qualification
• How to lodge an IDR data report when you have no complaints
• What things must NOT be on your website?
• Limitations surrounding appointing authorised representatives
• Do I need to be enrolled with AUSTRAC?
• Audits
• AUSTRAC AML/CTF Compliance Report

ACL Holders

• What things must be on your website?
• How to lodge an IDR data report when you have no complaints
• What things must NOT be on your website?
• AUSTRAC AML/CTF Compliance Report

Portal Video Subscription

The Sophie Grace portal now offers a video-only service. This means you can sign-up to gain access to a range of helpful videos for just $22 a month.

The videos are a perfect accompaniment to your coffee break, averaging around 12 minutes long. They are full of important information for every licensee with plenty of actionable takeaways!

New videos will be added every month to ensure you get the most out of your subscription.

Click below to visit our website and find the subscription that suits you best!

Subscription Options.

Having trouble keeping your compliance policies up to date?

The Sophie Grace Compliance Portal is designed to assist our clients with keeping their compliance policies and registers up to date. There are a number of different subscriptions available, that can include:

• access to compliance policies and registers that are customisable to your business;
• regular updates to documents to comply with the latest regulatory guidelines; and
• the ability to speak to a senior staff member when required.

Sign up today for your compliance needs.

Regulatory Updates

We regularly update our website with new blogs. If you want to stay up to date, click on the link below to visit our blog page or follow us on LinkedIn.

Check out our blogs.

The Corporate Manager

The Corporate Manager is owned and operated by Sophie Grace. The Corporate Manager assists with:

• Company Registration (Guided)
• Company Registration (DIY)
• Ongoing Company Services

The Corporate Manager.