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Compliance / SAM Network
Unregulated Loan Contracts
by Vicki Hoare / Compliance
02 SEP 2018

SAM Members have been advised by GRC Solutions that the Unregulated Loans Contract no longer meets ASIC's Expectations on unfair contract terms and the document will be removed from their Standard Documents package.

We would like some feedback from our members on:

  • Does the removal of this contract impact your business?
  • If so, have you already sought legal assistance in drafting a new contract?
  • Can you recommend a legal provider who has assisted you with this?
  • Would you be interested in the SAM Network obtaining an updated contract template to be made available to members on a shared cost recovery basis?   

I'm keen to hear your thought on this.  sam@coba.asn.au

The BEAR is coming.
by Vicki Hoare / Compliance
12 JUL 2018

The Bank Executive Accounting Regime (BEAR) commenced on the 1st July for large ADIs.  Small Customer Owned ADIs have until the 1 July 2019 before they need to implement the new regime. 

BEAR will introduce new obligations for employees and board members and the fines for non-compliance are substantial.  A small Credit Union could potentially be facing fines in excess of $10 million. Given this, BEAR is something that we need to pay attention to.

There are four main obligations that small mutuals need to comply with:

  1. Accountability of the ADI and of accountable persons.
  2. Identifying Key Personnel and the areas of the organisation that they are accountable for.
  3. Deferral of a portion of variable remuneration
  4. Notification when there are any changes of Key Personnel or a breach of the regulations.

Representatives from COBA meet regularly with APRA and they have advised that they will be seeking feedback from APRA on how the implementation with the large ADIs is progressing and if there are any lessons that can be passed to the smaller organisations.  APRA will also be providing further guidance on their expectations for small ADIs later this year.

 

The SAM Network will be looking to provide assistance to it's member organisations via Shared Services as they prepare for the Bank Executive Accounting Regime.  We expect there will be a need for new policy and procedures and we believe we will be able to assist by engaging a legal firm to prepare a guide and, if required, policy and procedure templates.

 

 

 

Thomas Lefebvre