1. Mandatory climate disclosure regime: “Start preparing for the future, now”: in a keynote speech by ASIC Chair Joe Longo, ASIC has released early guidance as to how it will administer the mandatory climate regime that it is calling a “new once-in-a-generation change”. The key message is that the +6000 entities required to report under the new requirements should start today in implementing systems, processes and governance practices to comply with their obligations under the regime. And while ASIC considers it too early to talk about its proposed enforcement strategy, it has confirmed that it will take a pragmatic approach to the monitoring and enforcement of the regime and issue further guidance to help entities meet their upcoming obligations. In the meantime, ASIC continues to encourage listed companies to report voluntarily under the recommendations of the Financial Stability Board's Taskforce on Climate-related Financial Disclosures and has promised to work with relevant agencies on broader initiatives that will assist entities meet their new obligations. The message is clear - don’t delay your preparations!
2. Reserve Bank of Australia issues a report on interlinked cross-border fast payment systems: the RBA’s report, which analyses the benefits, design choices and challenges associated with linking fast payment systems across countries, has concluded that connecting fast payment systems has the potential to considerably improve the speed and transparency of cross-border payments and benefit service providers and end-users alike. However, appropriate and fit-for-purpose governance systems, scheme rules and payments processing capabilities are critical to achieve this outcome and effectively manage the inherent risk of cross-border payment facilities. Dealing with differences in legal and regulatory frameworks across participating jurisdictions and agreeing on governance arrangements were identified as some of the key challenges going forward. Linked international fast payment systems are receiving significant attention across financial markets and we think there is a real likelihood that Australia’s domestic fast payment system to be linked to fast payment systems in other countries. 
3. ASIC issues the first final stop order under DDO regime: following an interim stop order, ASIC has now ordered that Coral Coast can no longer sign-up customers into Centrepay credit arrangements in its Urban Rampage stores. Coral Coast offers credit through deferred deduction arrangements via Centrepay and is subject to the design and distribution obligations administered by ASIC. ASIC found that it targeted First Nations consumers who received Centrelink payments - many of whom found themselves without money to pay for essentials. These arrangements were unsuitable for consumers in Coral Coast’s target market because they were unlikely to be consistent with their financial position and placed vulnerable customers at risk of financial hardship. This order illustrates ASIC’s commitment to taking decisive action in relation to its regulatory priorities and is a clear warning for businesses who use this model to ensure that their own practices comply with the law.
4. New relief for special purpose financing subsidiaries: ASIC has adopted a ‘no action position’ applying for financial years ending on or after 28 September 2016 on the financial reporting obligations of SPF subsidiaries or other wholly owned subsidiaries that issue debentures to sophisticated or professional investors (and their guarantors) that may have been relying on ASIC Instrument 2016/785. The instrument relieves certain wholly owned companies from their financial reporting obligations if they enter into a deed of cross guarantee with their holding entity and meet certain other conditions. There are also exclusions for ‘borrowers in relation to debentures’ and ‘a guarantor of such a borrower’. However, some corporate groups formed the view that the exclusions did not apply to their SPFs. After undertaking consultation, ASIC has announced it will not take enforcement action against these entities for not preparing and lodging annual reports where they otherwise comply with the requirements of the instrument.
5. International perspective: the Financial Conduct Authority (FCA) has released final guidance in relation to the UK’s anti-greenwashing rule. The rule that will apply to all financial services firms from 31 May 2024 and will require firms to ensure that any reference to the sustainability characteristics of a product or service is both accurate and “fair, clear, and not misleading”. The FCA will be able to challenge firms and – if necessary – to take appropriate action if it considers that they are making misleading claims about their products or services. The expectation is that the FCA will be proactively seeking to enforce compliance with the new rule and will likely be looking at ASIC’s recent wins on this front in Australia, including against Vanguard earlier this month. Global action against greenwashing is building and financial services companies across all jurisdictions should expect this trajectory to continue at pace.

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