In this Funds Update for 1 March 2024:

  1. ASIC reissues Regulatory Guide 148 on platforms
  2. Treasury announces financial services misconduct compensation scheme

ASIC reissues Regulatory Guide 148 on platforms

On 19 February 2024, ASIC reissued Regulatory Guide 148: Platforms that are managed investment schemes and nominee and custody services (RG 148). The reissued RG 148, which supersedes the previous version of the guidance that was reissued in September 2017, reflects new legislative instruments and confirms when information must be provided electronically to investors.

RG 148 provides guidance for operators of investor directed portfolio services (IDPS) and IDPS-like schemes, commonly referred to as platform operators, on:

  • the requirements for operating a platform;
  • general disclosure and content disclosure obligations; and
  • when platform operators provide financial product advice.

Treasury announces commencement of financial services misconduct compensation scheme

On 26 February 2024, the Treasury announced that the financial services compensation scheme of last resort (CSLR) will commence from 2 April 2024. This implements the Treasury Laws Amendment (Financial Services Compensation Scheme of Last Resort) Act 2023 (Cth), which was assented to on 22 June 2023.

The CSLR emerged from the Financial Services Royal Commission and the Ramsay Review. It seeks to provide compensation of up to $150,000 to eligible consumers who have received a favourable AFCA determination which remains unpaid.

The CSLR is currently only available for complaints relating to the following products and services:

  • the provision of personal financial advice to retail clients in relation to at least one financial product (other than a basic banking product, a general insurance product or consumer credit insurance);
  • dealings in securities for a retail client (other than issuing securities); and
  • engaging in a credit activity.

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