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On 18 October 2024, the Australian Federal Court in its judgment ruled that Harvey Norman Holdings Ltd and Latitude Finance Australia engaged in misleading conduct and made false or deceptive representations in relation to a widely promoted 60-month interest-free and no deposit payment method. The ruling stems from a complaint brought forward by the Australian Securities and Investments Commission (ASIC), which argued that the advertising campaign failed to disclose the full terms and conditions of the promoted payment method, leading to consumer misunderstanding. The advertisements in question were run by Harvey Norman and Latitude between January 2020 and August 2021 across various media outlets, including newspapers, radio, and television. These advertisements promoted an interest-free payment method for consumers purchasing goods from Harvey Norman stores, but ASIC alleged that the ads obscured crucial information. The issue at hand was that consumers were not clearly informed...

On 17 October 2024, the Australian Securities and Investments Commission (ASIC) has continued its significant transformation efforts and announced appointments to its senior executive leadership team. These appointments are said to be the ASIC’s largest organisational redesign in 15 years, which is aimed at enhancing the agency’s regulatory capabilities and improving its operational agility in a rapidly evolving financial landscape. Peter Soros has been appointed as the Executive Director of Regulation and Supervision. Soros, who will begin his role in November, joins ASIC from AUSTRAC, Australia’s financial intelligence and anti-money laundering regulator, where he has served as Deputy CEO for six years and briefly as Acting CEO. With over 20 years of experience in financial intelligence, regulation, and compliance, Soros will bring extensive expertise in overseeing regulatory operations. His role at ASIC will be crucial in shaping and overseeing supervision strategies as the...

On 16 October 2024, the United States Commodity Futures Trading Commission’s Division of Clearing and Risk held a significant roundtable discussion to address existing, new, and emerging issues in the world of clearing, with a strong emphasis on digital assets. Held at the United States CFTC’s headquarters in Washington, D.C., the roundtable brought together industry experts, regulators, and stakeholders to discuss the rapidly evolving landscape of derivatives and financial markets, particularly as it relates to digital assets and the challenges they pose. The session opened with welcoming remarks from Clark Hutchison, Director of the United States CFTC’s Division of Clearing and Risk. Pre-recorded messages from United States CFTC Chairman Rostin Behnam and Commissioners Summer Mersinger and Caroline D. Pham further set the tone for the discussions. Moderated by Gary DeWaal, former Senior Counsel and Chair of the Financial Markets and Regulatory Practice Group at Katten Muchin...

On 16 October 2024, the United States Securities and Exchange Commission filed a complaint against Baris Cabalar, a registered representative at PHX Financial, Inc., for recommending a short-term, high-volume trading strategy to eight retail customers without a reasonable basis for believing that the strategy would be profitable. The SEC alleges that from January 2019 through October 2021, Cabalar violated multiple provisions of United States securities law, including Section 17(a) of the United States Securities Act of 1933, Section 10(b) of the United States Securities Exchange Act of 1934, United States Rule 10b-5, and United States Regulation Best Interest (Reg BI) under United States Exchange Act Rule 15l-1. According to the United States Securities and Exchange Commission’s complaint, filed in the United States District Court for the Eastern District of New York, Cabalar, operating out of PHX Financial’s Hauppauge, New York office, advised customers to engage in frequent,...

On 15 October 2024, Mr Gan Kim Yong, Deputy Prime Minister and Chairman of the Monetary Authority of Singapore (MAS), provided written replies in Parliament addressing questions on funds collected by payment service providers and e-commerce platforms, as well as updates on the Shared Responsibility Framework (SRF) for phishing scams and compensatory frameworks for other scam types. The first question, asked by Mr Chua Kheng Wee Louis, MP for Sengkang GRC, was: "To ask the Prime Minister and Minister for Finance (a) with regard to funds collected by payment service providers and e-commerce platforms, whether current legislation restricts the settlement period to vendors and customers; and (b) whether current legislation requires customer funds to be separately managed for platforms with stored values." Mr Gan clarified that while e-commerce platforms are not regulated by MAS, those providing payment services under the Singapore’s Payment Services Act 2019 must be licensed by MAS....

On 11 October 2024, the United States District Court for the Southern District of Florida issued an Order related to Case No. 24-cv-23745-ALTMAN. This case involves the US Commodity Futures Trading Commission and Traders Domain FX LTD, among other defendants. The order granted a motion filed by the US CFTC to unseal the case, allowing the case file and all related docket entries to be made publicly accessible. The US CFTC had previously filed a complaint against Traders Domain FX LTD and its affiliates, accusing them of fraudulent activities, including the misrepresentation of trading operations and misappropriation of customer funds. The case was initially sealed, meaning that the public could not access its details. On 11 October 2024, the court granted the US CFTC’s motion to unseal the case, opening the documents and information within the case file for public viewing. The Order was signed by US District Judge Roy K. Altman. On 30 September 2024, the US Commodity Futures Trading...

On 14 October 2024, the Hong Kong’s Securities and Futures Commission (HK SFC) announced the appointment of Dr. Kelvin Wong Tin-yau as its new Chairman for a three-year term, starting on 20 October 2024. Dr. Wong will succeed Mr. Tim Lui, who will step down on 19 October 2024, after serving a successful six-year term. Dr. Wong brings a wealth of experience in financial regulations and capital market development to this leadership role. He is currently the Chairman of the Hong Kong’s Accounting and Financial Reporting Council (AFRC), a body that collaborates closely with the HK SFC to ensure the high standards and integrity of Hong Kong’s financial markets. He will continue in this AFRC position until 31 December 2024. Dr. Wong is no stranger to the HK SFC. Between 2012 and 2018, he served as a Non-Executive Director of the Commission and also chaired the Investor Education Centre (now known as the Investor and Financial Education Council) from 2017 to 2018. His deep knowledge of the...

On 14 October 2024, Monochrome Asset Management launched Australia’s first spot Ethereum exchange-traded fund (ETF), IETH, on Cboe Australia, marking a significant advancement in the nation's cryptocurrency investment landscape. The IETH ETF offers unique in-kind Ethereum subscriptions and tax efficiencies via a bare trust structure. The launch follows Monochrome's successful Bitcoin ETF (IBTC) debut in 2023, which has already garnered $15 million in assets. Trading for IETH is set to begin on 14 October 2024. This new ETF will allow investors direct exposure to Ethereum (ETH), providing a tax-efficient investment option. This launch builds on the success of Monochrome’s Bitcoin ETF (IBTC), introduced in August 2023, which has amassed $15 million in assets under management. The IETH ETF has been designed with a unique structure. Unlike U.S.-based ETFs, it features in-kind subscriptions and redemptions, where investors can contribute or redeem Ethereum directly from the fund without...

On 11 October 2024, the Australian Securities and Investments Commission (ASIC) published Report 797, titled Licensing and Professional Registration Activities: 2024 Update. The report outlines ASIC's licensing and registration activities over the 2023–24 financial year, providing insights for Australian Financial Services (AFS) licensees, credit licensees, auditors, service providers, and other professionals in the financial services sector. This report also covers ASIC’s performance in processing 1,531 licensing and registration applications from July 2023 to June 2024, marking a 2% increase from the previous year. ASIC finalised 874 AFS licence applications and 372 credit licence applications, reflecting slight decreases from the previous year. The report also discusses regulatory actions, including cancellations and suspensions of 239 AFS licences and 204 credit licences. In addition to addressing general licensing trends, ASIC outlines several reforms and amendments set to...

On 10 October 2024, the Singapore Police Force and the Monetary Authority of Singapore issued a joint advisory alerting the public to a surge in scams where perpetrators impersonate bank officers and government officials. The scam variant has seen at least 100 reported cases in September 2024, resulting in a total financial loss of $6.7 million. The advisory also outlines the method and practices used by the scammers to educate the public and provide precautionary steps for the public to avoid falling victim to such scams. The Singapore’s advisory describes how victims fall for such scams. In a scam which begins with an unsolicited phone call to potential victims, and the scammer is impersonating a bank officer from major Singaporean banks, such as DBS, OCBC, UOB, or Standard Chartered Bank. The scammer typically claims that either suspicious activities or unauthorized transactions have been detected in the victim’s bank account, prompting them to verify these transactions. When the...

On 4 October 2024, the United States Commodity Futures Trading Commission issued a supplemental no-action letter in response to a request from KalshiEX LLC and Kalshi Klear LLC, which grants exemptions to Kalshi and its clearing organisations, specifically Kalshi Klear LLC and LedgerX LLC, regarding compliance with provisions of the United States Commodity Exchange Act and United States CFTC regulations. The relief provided in this letter is an extension of a previous no-action letter issued in 2021 and exempts changes in Kalshi’s clearing operations, as the firm transitions from clearing contracts through LedgerX to Kalshi Klear LLC. The no-action relief granted by the United States CFTC offers Kalshi and its clearing entities exemptions from various reporting and recordkeeping requirements under United States regulations, including those specified in United States CFTC Regulations 38.8(b), 38.10, 38.951, and 39.20(b)(2), as well as Parts 43 and 45 of the United States CFTC...