Will identifier reduce multiple directorship conflicts?
People serving on multiple boards within the financial services industry, including as trustee directors on superannuation funds, will be more readily identifiable as a result of a bipartisan move to introduce Director Identification Numbers (DINs).
While having gone largely uncommented in the financial services industry, the move to introduce the DINs has been welcomed by the building and construction industry because it was something first canvassed in 2001 by the Cole Royal Commission.
The legislation to impose the DINs was introduced in the closing hours of the Parliament last week, within the Treasury Laws Amendment (Registries Modernisation and Other Measures) Bill 2019.
Importantly, the legislation is regarded as having bipartisan support with the building industry commenting on the level of activity on the part of the Shadow Assistant Treasurer, Stephen Jones and the Shadow Minister for Employment and Industry, Brendan O’Connor.
While the legislation is aimed at preventing phoenixing and other anti-commercial activity, it is also expected to give regulators greater visibility with respect to related party activity.
A number of people have come in for criticism over their presence on multiple boards in the superannuation industry, with claims that such situations give rise to conflicts of interest.
Under the new legislation, directors will have an identifier which can be tracked by the relevant regulators, particularly the Australian Securities and Investments Commission (ASIC).
Recommended for you
Financial Services Minister Stephen Jones has shared further details on the second tranche of the Delivering Better Financial Outcomes reforms including modernising best interests duty and reforming Statements of Advice.
The Federal Court has found a company director guilty of operating unregistered managed investment schemes and carrying on a financial services business without holding an AFSL.
The Governance Institute has said ASIC’s governance arrangements are no longer “fit for purpose” in a time when financial markets are quickly innovating and cyber crime becomes a threat.
Compliance professionals working in financial services are facing burnout risk as higher workloads, coupled with the ever-changing regulation, place notable strain on staff.
