Day 467: 'Deal the judiciary back in'
Counting the days since the banking royal commission was established.
Good afternoon, and welcome to day 467.
Today in summary: ASIC releases a 210 page report on its plan for industry levies in 2018-19, and warns they could still change; the ACCC releases its draft rules for open banking; and not all banks are on board the government’s plan to get money flowing to small business.
-- Charis
Current banker panic level: 🤑🧐😟
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ASIC has set out the levies it’s likely to charge the banking sector for 2018-19. The regulator’s relatively new industry funding model sees it recover the actual amount spent in regulating the industry sectors under its jurisdiction, which makes for a complicated accounting process. ASIC said:
“This information will help industry better plan for the actual levy which will not be billed until January 2020. The indicative levies are a guide and the amounts are likely to change when ASIC’s regulatory costs are known and published in December 2019.”
Industry can provide feedback on the cost recovery statement until April 26.
The ACCC is pushing ahead with open banking, despite missing the Consumer Data Right legislation it needs to proceed to pilot stage later this year. The regulator today released the draft rules for implementation in banking, and has opened them up for consultation until May 10.
ACCC Commissioner Sarah Court said:
“We are continuing to work through important issues, such as guidance for potential data recipients on the requirements for accreditation, and the operation of a pilot that is scheduled to begin in July 2019."
ANZ and Westpac are reportedly unwilling to get behind the Morrison government’s plan for a private equity style growth fund, backed by the banks, to make passive investments in small business. The Australian reports NAB is pushing for the fund (and pleading for others to get on board) , but without the support of more banks, it’s unlikely to get off the ground.
Today’s burn prize: Graeme Samuel
🔥🔥🔥
“OMG, what have I done?”
The former competition czar responds to being shouted down as “last century” for suggesting there was a “female club” of directors on Australian boards.
The Commentariat
Suggestions that at least some of the banking royal commission recommendations could be implemented by what, on the face of it, appear relatively simple changes to the law ignores the more complex reality, writes Clayton Utz Partner Narelle Smythe in the AFR.
“Take for example the recommendation to have brokers regulated by the laws that apply to entities providing financial product advice. At first glance, that might seem relatively straightforward. But then we get to the detail. Who exactly is a broker and what activities will trigger their obligations?”
An obvious byproduct of ASIC and APRA arming up with lawyers to take on banks or superannuation trustees is banks and super funds oiling up their own litigation machines, writes the AFR’s James Eyers.
“Resisting and challenging ASIC’s - or the Australian Prudential Regulation Authority’s - interpretation of duties is the very thing that banks will need to do to deal the judiciary back into the regulation game, as Commissioner Kenneth Hayne desired.”