This week’s issue features ASIC’s latest corporate plan outlining the regulator’s priorities for the next four years, as well as several industry and sector-specific short-term projects. He also covers a number of important financial services, regulatory and his ESG-related developments.
- End LTIP, delegate RemCos worker representation and increase pay transparency: UK High Wage Center calls for action to address widening pay gap between CEOs and workers
- Most S&P companies now include some form of ESG metrics in their incentive plans, with HCM-related metrics being the most common category.
Institutional investors and stewardship
- NBIM states that effective human capital management is critical to success and outlines minimum expectations for businesses
- Australia’s climate bill | Science and technology Australia proposes climate change bill should include additional commitments to ‘name and fame’ transition leaders
- The government is discussing proposals that could reduce emissions by up to 6% per year for Australia’s largest GHG emitter.
- UK financial regulator seeks new ESG advisory group
- ICA welcomes government endorsement of flood findings and reiterates call for increased investment in resilience measures
- Brief | Analysis by the Institute of Actuaries finds that climate change is already having a disproportionate impact on the affordability of insurance for vulnerable households. The Actuaries Institute has made several policy recommendations to address this issue. This includes (among other things) implementing “structural solutions to improve infrastructure resilience,” land-use improvement and planning, and changing building codes. The Australian Council of Social Welfare welcomed the report and called for a “national overhaul” of insurance affordability, giving priority to the economically disadvantaged.
- Brief | Unlocking investment in the hydrogen industry: The IGCC has released a report outlining the barriers, risks and opportunities for investors to ‘accelerate’ the Australian hydrogen industry. The key message is that green hydrogen (generated by renewable energy) “appears to be more economically viable and avoids the significant investment risks associated with blue hydrogen”.
Disclosure and reporting
- BlackRock urged global coordination on developing mandatory climate disclosures
- TOP STORY | Consumer protection is a key theme in ASIC’s latest corporate plan
- ASIC provides an update on three projects aimed at improving regulatory efficiency.
- Expert panel: RBA strengthens ‘existing dialogue with economic experts’
- Government flags plans to discuss proposed framework for regulation of crypto assets
- Tax Commission Releases “Consultation Guide” for (Planned) Review of Tax Treatment of Crypto Assets
- Discussion on proposed extension of CDR to non-bank lenders
- CDR: The Treasury Department is discussing proposed “minor technical modifications” to the definition of “product” in the Open Banking principal designation instrument.
- Hayne Commission case study: Freedom policies sold to ‘thousands’ of customers may qualify for coverage, according to ASIC
- FPA calls for ‘urgent and immediate continuation of ASIC industry tax freeze’
- Treasurer calls for discussion on Superannuation Fund’s role in financing energy transition, affordable housing and care for the elderly
- Encouraging Investment in Our Region: Treasurer Aide and Major Investors Visit Indonesia and Singapore
- Insurers to pay up to $220 million for ‘pricing promises’
- Brief | Over $3.6 billion in compensation for financial advice-related fraud: As of 30 June 2022, six of Australia’s largest banks and financial services institutions will face losses as a result of fraud, according to ASIC / Has reportedly paid/provided compensation to harmed customers totaling $3.6 billion. Fees for non-service conduct or non-compliant advice. Of this total, $438 million was paid and provided by the agency during the first six months of the year (January 1 through June 30, 2022).
- Top Stories | Google fined $60 million for misleading and deceptive behavior
- ACCC Explores Competition and Consumer Concerns on Social Media
Corporate Misconduct and Liability
- Discussions on Proposed Strengthening of Penalties for Anti-Competitive Behavior
Click here for the full Governance News PDF.