There are so many back office changes needed to accommodate upcoming reforms that compliance consultants are calling it 'Red October'. ASIC, aware of the strain, has indicated they'll take a "reasonable" approach to enforcement. initially.
Legal and compliance experts have flagged the government's new fund performance test as something advisers of APRA-regulated fund members need to be across. Ignoring repeated test failure could be the beginnings of a liability case, Minter Ellison partner Richard Batten warns.
“But what it does mean, if you’re an adviser and an authorised representative of a licensee, you have to understand how this works from day one because of the consequences of getting it wrong.”
Graham said advisers and licensees could not just “wait and see what happens” because of the way all the new regulatory changes came together.
“Every adviser knows 1 October there’s a new breach regime and reference checking system, on 5 October complaints comes in and design and distribution obligations (DDO) come in as well,” Graham said.
“The way these four regulations work together is they create mandatory reporting to the regulator, in terms of DDO, in terms of breaches, complaints and reference checking.
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