ASIC warns governance gap could emerge in first report on AI adoption by licensees

29 October 2024 – ASIC has conducted a market review regarding the use of artificial intelligence (AI) in the Australian financial markets. As a result of the outcomes, ASIC is urging financial services and credit licensees to ensure they have robust governance practises and policies when using and adopting AI practices.

ASIC is urging licensees to ensure they have practices and policies in place to use AI in a safe and responsible manner. Read more here.

Consider having a dedicated standalone AI Policy.

ASIC updates guidance for auditors following extension to financial reporting and audit obligations

24 October 2024 – ASIC have updated their guidance for the resignation, removal and replacement of auditors in relation to registrable superannuation entities (RSEs) and retail corporate collective investment vehicles (retail CCIVs).

The updated guidance includes:

  • how ASIC may exercise powers to give consent to the resignation or removal of an auditor
  • information required for resignation and removal applications, and
  • relevant effective dates.

ASIC has also released new information sheets for RSEs, retail CCIVs and AFS licensees (INFO 288, 289 and 290). Read more here.

APRA amends operational risk financial requirements for superannuation trustees

24 October 2024 – APRA has amended the prudential requirements relating to operational risk financial requirements for superannuation trustees.

They key changes include:

  • clarifying the purpose of the operational risk financial requirements (ORFR)
  • widening allowable usage ranges of the ORFR
  • linking more clearly with the prudential standard, and
  • amending the APRA notification requirements on further use of the ORFR.

APRA has also simplified their guidance on setting the minimum ORFR target amount. Read more here.

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