From 1 July 2019, all retail Over The Counter (OTC) derivative issuers are required to submit their monthly client money reconciliation reports to ASIC through the Regulatory Portal.
Previously, retail OTC derivative issuers were required to email monthly client money reconciliation reports to ASIC. However, as ASIC seeks to streamline its various portals as well as the way it communicates with financial services participants, the submission of monthly client money reconciliation reports will remove some of the manual processing required for retail OTC derivative issuers to meet their regulatory requirements.
OTC derivative issuers should already be familiar with ASIC’s Regulatory Portal as this is the location Industry Funding Levy invoices are obtained.
What does this mean for Retail OTC Derivative Issuers?
Retail OTC derivative issuers who do not have access to the ASIC Regulatory Portal should ensure they register for access as a matter of priority. Access can be obtained by visiting the ASIC Regulatory Portal Website.
Further, OTC derivative issuers should ensure those individuals within their business who are involved in the client money reconciliation process are aware of ASIC’s new requirements and have appropriate access to the Regulatory Portal.
One 4 April 2018, the ASIC Client Money Reporting Rules 2017 commenced imposing a number of obligations on retail OTC derivative issuers, including the obligation to perform daily and monthly client money reconciliations. For further information, read our previous article entitled Are you Ready for ASIC’s Client Money Reporting Rules?
You can read ASIC’s announcement in relation to the changes in reporting requirements on their website.
If you require any assistance in the preparation and/or submission of client money reconciliations or require assistance in obtaining access to ASIC’s Regulatory Portal, please contact us.
Sarah works with the Compliance Team with a particular focus on compliance and legal services. Sarah works with the Legal Team providing ongoing assistance in drafting and reviewing documentation as well as legal research. Sarah assists clients with AFSL and ACL applications, variations and also assists in the implementation of compliance reviews. She provides ongoing compliance support in the form of compliance program implementation and reviews.