Certainty Compliance » Compliance

AUSTRAC Industry Contribution

Stafford — Fri, 20 Feb 2015 01:06:39 +0000

The AUSTRAC Industry Contribution is a means for AUSTRAC to recover its costs from the industry. This was previously known as the AUSTRAC Supervisory Levy. The AUSTRAC Industry Contribution is an annual levy and AUSTRAC are about to issue invoices for the current financial year.

Reporting entities must make sure that AUSTRAC have up to date information about your company and its earnings to ensure that the appropriate contribution amount is applied.

Does this apply to me?
The AUSTRAC Industry Contribution applies to reporting entities that were enrolled with AUSTRAC on the census day – 1 July each year. However certain entities will not be required to a levy.

How is it calculated?
The charging model to calculate the industry contribution has been altered. The contribution amount will vary depending on your circumstances and will be calculated using:
• A Transaction Reporting Component: this is measured by the number of transaction reports and the value of transaction reports; and
• An Earnings Component: this measure is calculated on your earnings and varies depending on the type of business you operate, where you are incorporated and whether you are part of a larger group of companies.

What do I need to do?
As a reporting entity, you must ensure your AUSTRAC Business Profile is updated by 27 February 2015. The industry contribution invoice will be sent during April 2015.

For further information
For more information about AUSTRAC industry contribution and how to calculate the earning components, please visit their website.

Please contact us if you have any question at 02 8324 5300 or enquiries@certaintycompliance.com.au.

Certainty is at the Asian Financial Forum 2015

Stafford — Fri, 16 Jan 2015 05:56:14 +0000

Certainty Compliance will be joining the Asian Financial Forum (AFF) on 19-20 January 2015 in Hong Kong.

Meet with us at AFF 2015, Hong Kong Convention and Exhibition Centre or contact Michelle East meast@certaintycompliance.com.au

ASIC Statement on wholesale and retail investors and SMSFs

Jim — Wed, 03 Sep 2014 12:54:49 +0000

ASIC has revised its interpretation, previously published as QFS150, of how the wholesale investor test applies when a trustee of an existing superannuation fund receives advice about how to invest the fund’s assets. ASIC states that it will not take action if the person providing the advice determines the individual trustee is a wholesale client using the general test of the trustee holding net assets of at least $2.5 million or $250,000 gross income over last two financial years, rather than applying the higher $10 million net asset test. ASIC has also clarified that if the advice is about a single investment with a value over $500,000, the trustee will be a wholesale client. This is welcome news for providers of investment advice and those accepting investments from SMSFs.

What does this really mean?

It is important to note that this is a ‘no action’ position rather than a change of law. ASIC has noted that a legal risk remains and that this does not affect private rights of third parties to take action. ASIC has also warned that it will take action against providers who miscategorise clients, e.g. under the general test as a wholesale client without an accountant’s certificate.

Some aspects remain unclear

Uncertainty still remains:
• as to when a service is “advice that relates to superannuation”. If the financial service relates to a superannuation product, the $10 million net asset test is the only applicable test.
• on the calculation of net assets for the general test. For example, whether the assets of the SMSF can be combined with the assets of the trustee to meet the general test.
• on which tests apply when the trustee is not a single individual trustee. For example, when the trustee is a corporate trustee or when there are more than one individual as trustee and one individual does not meet the general test. ASIC also has not clarified if the general test or large transaction test can be used in these circumstances. It would be prudent for advisers and product providers to seek legal advice when the providing services to SMSF with different control structures.

For further information

Certainty can help you meet all aspects of your AFSL obligations. Please contact our office on (02) 8324 5300 or enquiries@certaintycompliance.com.au.

Market Integrity Rule breach – Pershing trade confirmations

Stafford — Tue, 04 Feb 2014 23:55:47 +0000

Pershing Securities Australia Pty Ltd (Pershing) paid infringement notice penalty of $15,000 for failing to give trade confirmations to retail clients.

The problems were identified in April 2012 when Pershing realised that 701 transactions were executed for which they failed to issue a trade confirmation. The problems occurred between 2010 and 2012 when 37 trading accounts were set up incorrectly by Pershing and third party intermediaries, mainly due to omission or incorrect postal address and email address. As a result, clients did not receive confirmation from Pershing in respect of trades executed on the ASX.

The Market Disciplinary Panel believed that Pershing has breached Rule 3.4.1 of Market Integrity Rule (ASX Market). This rule requires market participants to give a confirmation to the client in respect of each market transaction entered into on the client’s instructions (or MDA).

What does this mean for me?

For market participants, you would be aware of the importance of timely delivery of confirmation to all retail clients. However, it is important that you consider:

Are your client on-boarding procedures documented and current?
Do your processes adequately address your obligations where certain services are delivered by intermediaries or other third parties?
Do you conduct regular reviews to confirm whether accounts are being set-up correctly during the client on-boarding process?

For further information

See the ASIC media release 14-019MR for full details of the announcement and the infringement notice. You can also view the ASIC Market Integrity Rules (ASX Market) on the ASIC website.

AML/CTF Compliance Report due by 31 March 2014

Stafford — Wed, 22 Jan 2014 03:24:07 +0000

Under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006, a reporting entity who provides ‘designated services’ during any part of the reporting period of 1 January 2013 to 31 December 2013, needs to submit an AML/CTF compliance report to AUSTRAC by 31 March 2014. A reporting entity is an individual, company or other entity that provides a ‘designated service’ as defined in section 6 of the AML/CTF Act. Reporting entities typically include banks, non-bank financial services, remittance (money transfer) services, bullion dealers and gambling businesses.

The AML/CTF Compliance report may ask you about your AML/CTF Program Part A and Part B, your reporting obligations, correspondent banking relationships and electronic fund transfer instructions.

Who can help me preparing my report?
AUSTRAC provides instruction guide for submitting compliance report and a sample of report in their website.
Certainty can also provide professional assistance in preparing your AML/CTF compliance report.

How do I submit a report?
The AML/CTF compliance report is typically submitted electronically via AUSTRAC Online.

What if I don’t submit an AML/CTF compliance report?
Civil penalties may apply if you fail to submit the report by 31 March 2014. Criminal penalties may also apply if you supply false or misleading information or documents to AUSTRAC.

For further information
Certainty can help you meet all aspects of your AML/CTF obligations. We can also assist with an independent external review of Part A of your AML/CTF Program. Please contact our office on (02) 8324 5300 or enquiries@certaintycompliance.com.au.

Better Access to Financial Advice

Daisy Nathania — Thu, 28 Feb 2013 03:16:23 +0000

What’s New?

27 February 2013

Minister for Financial Services and Superannuation, Bill Shorten, has announced the next step in enabling accountants to offer a wider range of services through regulations to replace the accountants’ licensing exemption with a limited AFSL.

After feedback from industry on the draft regulations in late 2012, the Government has announced that it will finalise the regulations in April 2013.

Currently accountants have an exemption from licensing that allows them to provide advice on SMSFs.

The limited AFSL will be extended to enable accountants to provide more strategic advice to their clients, including advice on “class of product advice” in the following areas:

basic deposit products,
general and life insurance,
securities, and
simple managed investment schemes

A streamlined application process will apply from 1 July 2013 to 1 July 2016.

Prior to 1 July 2016, accountants who are members of the ICAA, CPA Australia or the Institute of Public Accountants (IPA) won’t have to demonstrate their experience to ASIC to receive the limited licence.

After 1 July 2016 anyone applying for the licence will need to satisfy the same experience requirements as any other applicant.

How can Certainty help?

Certainty Compliance can assist with your application. We can assist you in understanding all your regulatory obligations, and ensure you have systems, policies and procedures in place to comply with them.

For further information:

See the full Ministerial media release here: No.011

Reminder of some key AFSL compliance tasks

Daisy Nathania — Mon, 03 Dec 2012 21:59:15 +0000

AFSL holders with carbon and derivatives authorisations

Here’s a short list of compliance tasks that you should have underway before the holiday season begins:

Compliance policies and implementation

In your AFS licence application your directors made significant representations to ASIC about your compliance obligations and how you intend to meet these. You are expected to have documented policies and procedures in place. Time to get writing and implementing!

Auditor appointment

Did you appoint an auditor during the licensing process? If not you’ve got one month to do that from the date your licence was granted and to notify ASIC.

Advertising

As many carbon products are financial products, you should also take particular care with advertising to ensure it is not misleading and deceptive and/or that you are not inadvertently providing financial services that you are not licensed to provide. ASIC has published a very useful guide to good advertising principles (ASIC RG 234) and we recommend that you read this. Ensure your staff know your procedure for approving advertising before it is released publicly. Oversight by compliance or legal of this approval process is highly recommended.

Remember: advertising includes the traditional media of print, television, radio and bill boards as well as websites, emails and social media (e.g. facebook, twitter, linkedin).

Austrac registration and AMLCTF Program

Carbon products and derivatives are also regulated by AUSTRAC. Before you complete a transaction (or arrange for someone to complete a transaction), you must have a Board approved AML/CTF Program in place. You also need to register with AUSTRAC.

If you are an existing AFS licensee, a reminder that we are coming up to the end of the AML/CTF year and it is time to start preparing for annual compliance reporting in March 2013. Have you had your AML/CTF Program independently reviewed recently?

Training conditions

ASIC might require your Responsible Managers to undertake a short course on FSR regulation and AFS licence compliance obligations prior to or as a condition on granting the AFS licence. Certainty offers appropriate courses through a variety of delivery modes. Ask us for details.

Need help? Please give us a call to discuss on 02 8324 5300 or email enquiries@certaintycompliance.com.au

Carbon update: forward carbon sales are derivatives

Daisy Nathania — Mon, 03 Dec 2012 21:43:36 +0000

What’s New?

ASIC have recently stated in two new fact sheets for Carbon Farming Initiative that a “forward sale of ACCUs for settlement in the future is classed as a derivative”. Unless you are covered by an exemption, you must hold an AFS licence or be an authorised representative of an AFSL holder with appropriate authorisations before providing financial services (advice, deal, make a market etc) for carbon products and derivatives before providing any financial services in relation to the forward sale of any of the ASIC regulated carbon products.

New AFS Licence applicants

If you are a new AFS licence applicant that registered with ASIC prior to 1 July 2012, lodged your full application before 31 October 2012 and have not yet received your AFS licence, you must not provide financial services in derivatives (including forward sales) until you have been granted your AFS Licence. You can continue providing the financial services that you registered for until 31 December 2012. Unless you are covered by an exemption, you cannot provide any additional financial services or financial products or client type in the interim. From 1 January 2013, all interim relief expires.

If you did not register or if you missed the 31 October deadline to submit your full AFS Licence application, then you currently have no transition relief. This means you must first obtain an AFS Licence or become an authorised representative of an appropriately licensed ASF licence holder before providing financial services.

If you did not lodge your application under the same entity name you registered in, you do not have the benefit of transition and must wait until your AFS Licence is granted before providing financial services.

All new AFS Licence applicants should check their websites and advertising to ensure that they are not inadvertently providing any unlicensed financial services.

Need help? Please give us a call to discuss on 02 8324 5300 or email enquiries@certaintycompliance.com.au

Australian financial services licensing and the Carbon Farming Initiative Fact Sheets:

A fact sheet for advisers and project developers
A fact sheet for farmers and land managers

Responsible Manager Program for Carbon Market Participants – New Dates

Daisy Nathania — Thu, 15 Nov 2012 00:11:32 +0000

Financial services regulation is complex and new for many in the carbon market. Understanding your obligations is crucial for anyone in a senior position. As a Responsible Manger, you’re expected to know how the AFS licence requirements apply to your organisation.

In partnership with the Carbon Markets Institute, Certainty Compliance will be presenting a number of Workshops over the coming months. The Workshops are designed to help participants in the Carbon Markets understand their licence obligations.

The Workshops will focus on a number of areas, including:

The regulatory framework in the carbon markets
The roles and responsibilities of a Responsible Manger
Identifying your compliance requirements as a AFS licensee
Strategies for meeting the obligations you have an an ASF licensee

For all enquiries about the courses please telephone (02) 8324 5300 or email training@certaintycompliance.com.au

Book online: here

Further information: link to our Brochure

Certainty chairs workshop at Carbon Expo Australasia

Daisy Nathania — Tue, 06 Nov 2012 05:21:07 +0000

On Wednesday 7 November, 13.30 – 14.30pm 13.30 – 14.30pm, Michelle East is chairing Workshop WS2.2 Do you need a licence to participate in carbon markets?.

Michelle is joined by panelists Craig McBurnie, Senior Specialist – Strategic Policy, ASIC; Timothy Thomas, Senior Analyst & Lawyer, Registry Services & Licensing, ASIC; Su-King Hii, Principal, Innovest Consulting; Matt Daley, Partner, Clayton Utz; John Kelly, Managing Director, Consult Insurance Solutions; and Claire Wivell Plater, Managing Director, The Fold Legal.

Whether someone trading, broking and advising in relation to carbon credits needs an Australian Financial Services Licence (AFSL) requires careful consideration of their activities. For domestic and international participants there may be exemptions, for others their activities could constitute a breach of the regulations.

This is your chance to hear directly from the regulators about the requirements to hold an Australian Financial Services Licence and from a panel of service providers who have expertise in assisting organisations with planning for and obtaining their AFSL.

After a brief introduction from ASIC, we will hand over to you. We are seeking questions from the audience. If you can’t be there or would prefer to keep a low profile, send me your questions beforehand to:meast@certaintycompliance.com.au