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Client Money – Enforcement Powers Regulations

Key documents

Treasury is seeking stakeholder views on the draft Corporations Amendment (Client Money Reporting Rules Enforcement Powers) Regulations 2018.

These Regulations complete the Government’s client money reform agenda, designed to strengthen the protection of retail clients of financial services.

Specifically, the Regulations propose to give the regulator (the Australian Securities and Investments Commission, or ASIC) necessary tools to enforce the ASIC Client Money Reporting Rules 2017. These Rules make Australian financial services licensees more accountable for the way they hold client money.

The Corporations Act 2001 already allows ASIC to impose a pecuniary penalty of up to $1 million for non-compliance with the ASIC Rules. The draft Regulations simply give ASIC alternatives to civil proceedings: namely, the ability to issue infringement notices and enter into enforceable undertakings with licensees. The resulting regime will effectively mirror those already operating to enforce ASIC’s market integrity, derivative transaction and trade reporting rules.

Responding

You can submit responses to this consultation up until 26 April 2018.

Interested parties are invited to comment on this consultation.

While submissions may be lodged electronically or by post, electronic lodgement is preferred. For accessibility reasons, please submit responses sent via email in a Word or RTF format. An additional PDF version may also be submitted.

All information (including name and address details) contained in submissions will be made available to the public on the Treasury website unless you indicate that you would like all or part of your submission to remain in confidence. Automatically generated confidentiality statements in emails do not suffice for this purpose. Respondents who would like part of their submission to remain in confidence should provide this information marked as such in a separate attachment.

Legal requirements, such as those imposed by the Freedom of Information Act 1982, may affect the confidentiality of your submission.

How to respond

Post

Address written submissions to:

Manager
Banking and Capital Markets
Financial System Division
GPO Box 89
SYDNEY NSW 2000