Course Outline

Compliance: Theory and Practice in the Financial Services Industry

Course Outline

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Compliance Course

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1. Licensing

	Outline
	What is a Financial Product?
	What is a Financial Service?
	When is a Financial Services Licence Needed?
	Licence Conditions
	The General Obligations of a Licence Holder
	Authorised Representatives
	Liability for Conduct of Representatives
	Miscellaneous Licensing Related Matters

2. The Role of Compliance

	Outline
	What is "Compliance"?
	The Difference between Compliance, Legal and Internal Audit
	The Justification for a Compliance Function
	Australian Standard AS 3806-2006
	Regulatory Pronouncements on Compliance Systems
	Judicial Pronouncements on Compliance Systems
	The Desirable Features Of A Financial Services Compliance System
	A Sample Financial Services Compliance Mission Statement
	A Sample List of Financial Services Compliance Policies
	Dealings with Regulators

3. Insider Trading and Chinese Walls

	Outline
	The Insider Trading Prohibitions
	The Chinese Wall Defence
	Other Exceptions and Defences
	ASX Market Rules
	The Position in the US
	Research Analysts
	Front Running
	Continuous Disclosure Rules
	Issues for Discussion

4. Market Conduct Rules

	Outline
	Market Misconduct
	Order Record Requirements
	Order Precedence and Allocation Rules
	Dealing with Clients as Principal
	Dealings for or with Employees
	Short Selling

5. Shareholding Restrictions

	Outline
	Corporations Act
		Relevant Interests
		Associates
		Takeover Restrictions
		Substantial Shareholding Notices
		Tracing Notices
	Foreign Acquisitions and Takeovers Act
		Overview
		Substantial Interests
		Associates
		Compulsory Notification
		Prohibition/Divestiture Powers
	Other Legislation
	System Issues

6. Trade Practices

	Outline
	Basic Trade Practices Concepts
	Anti-competitive Behaviour
	Misleading and Deceptive Conduct
	Unlawful Trading Practices
	Unconscionable Conduct
	Unfair Consumer Contracts
	Implied Consumer Warranties
	Compliance Programs

7. Combating Crime

	Outline
	Anti-Money Laundering and Counter-Terrorism Financing
		ML-TF Crimes
		The AML-CTF Framework
		Core Definitions
		Compliance Programs
		KYC Obligations
		Reporting Obligations
		Correspondent Banking Obligations
		Record Keeping Obligations
		Enforcement
	Proceeds of Crime Act
	Bribery and Corruption
	Compliance Ramifications

8. Retail Customer Obligations and Marketing Financial Products

A. Retail Customer Obligations

	Outline
	Retail vs Wholesale Customers
	Personal vs General Advice
	Financial Services Guides
	Statements of Advice
	Know Your Client/Product
	Warning Obligations
	Dispute Resolution Systems
	Compensation Arrangements
	Consequences of Breach

B. Marketing Financial Products

	Outline
	Overview of Marketing Regime
	Securities Disclosure Documents
	Product Disclosure Statements
	Confirmations
	Advertising Restrictions
	Hawking Financial Products
	Unsolicited Off-market Offers

9. Miscellaneous Compliance Issues

	Outline
	Client Money/Property
		Money Other Than Loans
		Loans
		Other Property
		Reporting Obligations
		Subscription Money
	Privacy
	Fiduciary Duties
	Conflicts of Interest
	Confidentiality
	Telephone Taping
	When Things Go Wrong
		Escalation Procedures
		Control Logs
		Investigations
		HR Issues
		Self-Reporting Obligations

10. Managed Investments

	Outline
	What is a Managed Investment Scheme?
	Registration of Schemes
	Licensing and Disclosure
	Responsible Entities
	Scheme Constitutions
	Compliance Plans
	Compliance Committees
	Statutory Duties
	Related Party Transactions
	Civil Liability for Breach of Chapter 5C
	Common Law Duties
	Soft Dollar Arrangements
	Allocation Policy
	Inter-funding
	Cross Trading
	Authorised Investments
	Custodians
	Investor Directed Portfolio Services
	Managed Discretionary Accounts
	IFSA Standards and Guidance Notes

11. Deposit Products, Non-Cash Payment Facilities, FHSA Products, Credit Facilities and ASX Stockbroking

A. Deposit Products and Non-Cash Payment Facilities

	Outline
	Definitions
	Banking Act
	Financial Sector (Collection of Data) Act
	Relaxation of FSR Rules for Basic Deposit Products and Related Non-Cash Payment Facilities
	Industry Codes of Practice

B. FHSA Products

	Outline
	Definitions
	Licensing and Disclosure Requirements
	Relaxation of FSR Rules for Capital Guaranteed FHSA Products

C. Credit Facilities

	Outline
	Definitions
	Exclusion of Credit Facilities from FSR Rules
	Credit Activities Covered by the NCCPA
	Australian Credit Licences
	Credit Guides
	Responsible Lending Obligations
	Fees and Charges for Credit Assistance
	National Credit Code Obligations

D. ASX Stockbroking

	Outline
	Introduction
	Admission and Accreditation
	General Obligations of Participants
	Client Documentation
	Client Trust Accounts
	Trading Rules
	Confirmations
	Managed Discretionary Accounts
	Error Trades
	Complaint Registers

12. Derivatives, Warrants, SFE Futures, FX, Financial Planning and Margin Lending

A. Derivatives

	Outline
	Definitions
	Who is the Issuer of a Derivative?
	PDS Requirements
	Confirmations

B. Warrants

	Outline
	Definitions
	Who is the Issuer of a Warrant?
	PDS Requirements
	Confirmations
	ASX Market Rules

C. SFE Futures Broking

	Outline
	Introduction
	Admission and Accreditation
	General Obligations of Participants
	Client Documentation
	Client Segregated Accounts
	Trading Rules
	Confirmations
	Error Trades

D. Foreign Exchange

	Outline
	Definitions
	Licensing

E. Financial Planning

	Outline
	Licensing and Disclosure Requirements
	Training Requirements
	Fiduciary Duties
	The Financial Planning Association
	Particular Compliance Concerns

F. Margin Lending

	Outline
	Definitions
	Licensing and Disclosure Requirements
	Responsible Lending Obligations
	Margin Call Obligations
	Reporting Obligations

13. Insurance, Superannuation and RSAs

	Outline
	Definitions
	Overview of Insurance Act 1973
	Overview of Life Insurance Act 1995
	Overview of Insurance Contracts Act 1984
	Overview of Superannuation Industry (Supervision) Act 1993
	Overview of Retirement Savings Account Act 1997
	Marketing Insurance and Superannuation Products
	Insurance Agents and Brokers
	Insurance Premiums
	The Superannuation Complaints Tribunal

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