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Australian Regulatory Compliance Review 
information about Australian laws, regulations and legal compliance particulartly in the financial services industry
Post Frequency: 3/day Last Entry: November 19, 2009 at 16:44:29 Recent Entries: 961
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Privacy case notes 12-17 for 2009
Posted on November 19, 2009The Privacy Commissioner has released the following case notes: In Own Motion Investigation v Financial Institution [2009] PrivCmrA 12 the Commissioner commenced an own motion investigation after being advised by an individual that a financial institution had been sending bank...
ASIC v Rich: ASIC One.Tel case against Rich and Silbermann dismissed
Posted on November 18, 2009In Australian Securities and Investments Commission v Rich [2009] NSWSC 1229 Judge Austin decided that ASIC had failed to prove its case against One.Tel director and joint chief executive Jodee Rich and One.Tel's finance director Mark Silbermann. ASIC brought civil...
Privacy and credit reporting changes
Posted on November 17, 2009This article by me was first published in Retail Banking Review. The Government has confirmed that it will accept the Australian Law Reform Commission?s recommendation to amend the Privacy Act to allow credit reporting to include information about an individual?s...
Director and executive termination payments bill passed
Posted on November 16, 2009The Corporations Amendment (Improving Accountability on Termination Payments) Bill 2009 was passed by the Senate on 16 November after it dropped an amendment requiring a review in three years time. The House of Representatives sent the Bill back to the...
ACCC guide to protecting commercially sensitive information in exclusive dealing notifications
Posted on November 16, 2009The ACCC has published a guide providing specific information on the ACCC's approach to requests to exclude information from the public register in the context of exclusive dealing notifications. Althouigh the notice itself cannot be excluded from the public register,...
Australian Consumer Law: regulatory impact
Posted on November 16, 2009The Standing Committee of Officials of Consumer Affairs has released a consultation regulatory impact statement (RIS) on reforms based on best practice in state and territory consumer protection laws, and a new national product safety regime. These reforms are being...
Superannuation reviews
Posted on November 15, 2009This speech by the Minister for Superannuation gives a useful background to the Cooper review into governance and efficiency, the Henry tax review and the Ripoll parliamentary inquiry.
Regulation of credit ratings and credit ratings agencies
Posted on November 12, 2009ASIC has announced that it has decided to withdraw current class order relief that allows issuers of investment products to cite credit ratings without the consent of credit rating agencies. From 1 January 2010, issuers must ensure that the credit...
Spam Act action by ACMA: Vodafone and 3 others
Posted on November 11, 2009The Australian Communications and Media Authority (ACMA) has accepted enforceable undertakings and payments from three companies?Vodafone Hutchison Australia Pty Limited (VHA), New Dialogue Pty Ltd (New Dialogue), Big Mobile Pty Ltd (Big Mobile)?and issued a formal warning to Coca-Cola South...
ASIC targets unsolicited credit cards: NAB agrees to deactivate cards
Posted on November 09, 2009ASIC has reminded financial institutions of the prohibition in Section 12DL of the Australian Securities and Investments Commission Act 2001 (Cth) (ASIC Act) against the sending of unsolicited credit and debit cards by annnouncing the terms of National Australia Bank's...
Directors' personal liability principles
Posted on November 07, 2009The Minister for Financial Services, Superannuation and Corporate Law, Chris Bowen MP, has announced that the Ministerial Council for Corporations (MINCO) has agreed on a set of principles by which all jurisdictions will audit their legislative provisions that deal with...
Government proposes changes to Franchising Code of Conduct
Posted on November 07, 2009The Government has responded to reports of the Joint Committee on Corporations and Financial Services and the Senate Standing Committee on Economics by announcing that it will strengthen the Franchising Code of Conduct and the unconscionable conduct provisions of the...
Superannuation clearing house service for small business
Posted on November 05, 2009The Minister for Superannuation, Chris Bowen MP, and Minister for Small Business, Craig Emerson MP, have announced that the Government will deliver a free superannuation clearing house service for small business through Medicare Australia. The clearing house service will be...
Austrac issues first remedial direction
Posted on November 05, 2009AUSTRAC has issued its first remedial direction for non-compliance with the AML/CTF Act. The direction was issued to Ms Mojgan Zojaji, trading as Little Persia, a remittance service provider, for failure to adopt and maintain an AML/CTF program. The direction...
Eligible Emissions units as Financial Products: Draft Regulations
Posted on November 04, 2009The Government has decided that eligible emissions units under the Carbon Pollution Reduction Scheme will be financial products for the purpose of the Corporations Act 2001 and the Australian Securities and Investments Commission Act 2001. Treasury is consulting interested parties...
Funded class actions get ASIC relief
Posted on November 04, 2009To avoid any uncertainty arising from Brookfield Multiplex Ltd v International Litigation Funding Partners Pte Ltd [2009] FCAFC 147, ASIC has announced its intention to grant transitional relief to lawyers and litigation funders involved in legal proceedings structured as funded...
Regulation of food safety
Posted on November 04, 2009The Productivity Commission has published a draft research report on the Regulation of Food Safety. The Report highlights the lack of uniformity in food safety standards and the administration and enforcement of food safety regulation in all levels of Australian...
Commonwealth Bank of Australia pays $100,000 fine for breach of continuous disclosure law
Posted on November 01, 2009This article by me was first published in Complinet. On 16 December 2008 as the Commonwealth Bank of Australia (CBA) was attempting to close a AU$2 billion capital raising it received updated information about its impairment expenses. The issue was...
Australian Consumer Law update: deferral to 1 July 2010 and other amendments
Posted on October 29, 2009The Trade Practices Amendment (Australian Consumer Law) Bill 2009 has been introduced into the Senate. The Government has tabled amendments proposing that the provisions concerning the national unfair contract terms law will not commence before 1 July 2010...
Bankruptcy Amendment Bill introduced
Posted on October 28, 2009The Attorney-General, Robert McClelland,has introduced the Bankruptcy Legislation Amendment Bill 2009 into Parliament. The Bill introduces a number of reforms, including: increasing the minimum amount for which a creditor can petition for bankruptcy from $2,000 to $10,000; increasing the stay...
Director and executive termination benefits update
Posted on October 27, 2009The Corporations Amendment (Improving Accountability on Termination Payments) Bill 2009 (see background here) has been passed by the Senate with one amendment: a clause that the law ceases if not extended by Parliament after 3 years. The House of Representatives...
Corporations Legislation Amendment (Financial Services Modernisation) Bill 2009 passed
Posted on October 27, 2009The Corporations Legislation Amendment (Financial Services Modernisation) Bill 2009 has been passed by both the House of Representatives and the Senate. Amongst other things the Bill amends the Corporations Act 2001 to: establish a national regulatory regime for margin loans...
Updated compensation and insurance arrangements for AFS licensees
Posted on October 27, 2009ASIC has released an updated version of Regulatory Guide 126 Compensation and insurance arrangements for AFS licensees (RG 126). ASIC has removed the requirement for Australian Financial Services (AFS) licensees to obtain automatic insurance run-off cover as it is not...
Privacy of personal information online
Posted on October 27, 2009Shortly after the Government's response to the Australian Law Reform Commission's Privacy Report. ACMA released its research report Attitudes towards use of personal information online. Key findings include: There was an acceptance among research participants that using information and communication...
Draft AML/CTF Rules for the exemption of salary packaging administration
Posted on October 27, 2009Austrac has released draft AML/CTF Rules exempting providers of administration services relating to salary packaging from the Act where their activities relate solely to the item 6, item 7 and item 48 designated services. A public consultation period is open...
Do Not Call Register review discussion paper
Posted on October 27, 2009The Government has released a Discussion Paper reviewing the Do Not Call Register Act which allows Australians to opt out of receiving unsolicited commercial marketing (telemarketing) calls by listing their fixed line and mobile telephone numbers used primarily for private...
Key credit reporting change dates
Posted on October 25, 2009As part of the Government's proposed changes to the Privacy Act (see here) 4 additional categories of information ("data sets")(see here) as well as repayment history information will be permitted to be included in credit reports. The Government has announced...
ACCC trade practices compliance update
Posted on October 25, 2009ACCC Enforcement Commissioner Sarah Court's speech on compliance provides a number of reasons why compliance, especially voluntary compliance, makes good sense for any business. Highlighting a number of case studies, she provides some guidance on how the ACCC may react...
ACMA v Mobilegate SMS spam penalty
Posted on October 24, 2009The Federal Court has handed down its penalty in ACMA v Mobilegate (previously discussed here) According to ACMA the Federal Court has awarded penalties totalling $15.75M against the following defendants: Mobilegate Ltd: $5 million Winning Bid Pty Ltd: $3...
Personal Property Securities update
Posted on October 24, 2009The Personal Property Securities (Consequential Amendments) Bill 2009 has been introduced into Parliament. It amends the Personal Property Secutrities Bill to take into account recommendations of the Senate Committee (discussed here)
ASIC proposals on unlisted, unrated debentures
Posted on October 24, 2009ASIC has released its second report on the unlisted, unrated debenture market and a consultation paper (Consultation Paper 123 Debentures: Strengthening the disclosure benchmarks (CP 123)) outlining proposals to improve the benchmarks under ASIC's Regulatory Guide 69 Debentures: Improving disclosure...
Corporate whistleblowers options paper released
Posted on October 24, 2009The Minister for Financial Services, Superannuation and Corporate Law, the Hon Chris Bowen MP, has released an options paper exploring strategies for improving protections for corporate whistleblowers. Currently, corporate whistleblowers are protected under Part 9...
Employee share scheme taxation bills introduced
Posted on October 21, 2009The Government has introduced into Parliament the Tax Laws Amendment (2009 Budget Measures No. 2) Bill 2009 and the Income Tax (TFN Withholding Tax (ESS)) Bill 2009 to reform the taxation of employee share schemes.(Background here) When passed, the legislation...
ASIC sues Centro Properties Group directors
Posted on October 20, 2009ASIC has announced that it has issued civil penalty proceedings in the Federal Court of Australia against current and former directors and a former Chief Financial Officer (CFO) of various entities within the Centro Properties Group (CNP) and Centro Retail...
Austrac draft AML/CTF rule on warrants
Posted on October 18, 2009Austrac has released draft AML/CTF Rules relating to warrants. These draft AML/CTF Rules exempt reporting entities that are warrant issuers, subject to specific circumstances, from the applicable customer identification procedure of the AML/CTF Act, if they provide the item 33,...
Report on regulation of not-for-profits
Posted on October 15, 2009The Productivity Commission has released its draft research report on the contribution of the not-for-profit sector. The report recommends, amongst other things, clearer governance and accountability of NFP's via a consolidated regulatory framework that provides a simple one-stop-shop for Commonwealth...
Government responds to Privacy Report
Posted on October 13, 2009The Commonwealth Government has released its first stage response to the Australian Law Reform Commissions review of privacy law. The first stage response outlines the Government?s position on 197 recommendations of the 295 recommendations in the ALRC?s report ...
ASIC consults on online financial services disclosures
Posted on October 12, 2009ASIC has issued Consultation Paper 121 seeking feedback on proposals for changes to online financial services disclosures. The proposals include: relief to give providers certainty about giving product disclosure statements, financial services guides and statements of advice to retail clients...
Reviewing APRA decisions
Posted on October 12, 2009Not every decision of a regulator such as APRA is reviewable but 2 recent judgments relating to APRA decisions are noteworthy. In Porter v Australian Prudential Regulations Authority [2009] FCA 1148 the Federal Court ordered that APRA pay the costs...
Draft AML/CTF Rules for debt collectors
Posted on October 11, 2009Austrac has issued draft AML/CTF Rules which exempt from specified provisions of the AML/CTF Act, those persons who in the capacity of a debt collector, provide certain designated services. These draft AML/CTF Rules do not remove, when appropriate, the obligation...
Draft GST administration simplification rules
Posted on October 06, 2009The Assistant Treasurer has released draft legislation, regulations and explanatory material to implement the following announced GST administration measures: Limiting claims for input tax and fuel tax credits to four years Introducing a bulky goods export refund scheme for Australian...
Draft short selling regulations released
Posted on October 03, 2009Treasury has released draft regulations in relation to the disclosure of short selling information under the Corporations Amendment (Short Selling) Act 2008. The draft regulations require: transactional reporting: the reporting of covered short selling transactions to market operators...
ASIC consults on clearing and settlement facilities
Posted on October 01, 2009ASIC has released a Consultation Paper (CP 120) Clearing and settlement facilities: Australian and overseas operators containing proposed guidance on the regulation of clearing and settlement (CS) facilities. The Corporations Act requires that operators of a CS facility in Australia...
Productivity Commission Draft Report on Executive Remuneration
Posted on September 30, 2009The Productivity Commission has released a discussion draft of its report on executive remuneration. Submissions close on 6 November 2009. The draft report complements but is separate from draft standards on financial institution remuneration issued by the Australian Prudential Regulation...
Daylight saving starts this weekend
Posted on September 30, 2009Daylight saving starts this Sunday 4 October in Australian Capital Territory, New South Wales, Victoria, South Australia and Tasmania. All end on Sunday 4 April 2010. Queensland, Western Australia and the Northern Territory do not have daylight saving...
APRA prudential supervision update
Posted on September 29, 2009Beyond the Global Financial Crisis: A Prudential Perspective by John Trowbridge, an Executive Member of APRA, is a useful update of the structure and changes , both locally and internationally, in four industries, namely banking, general insurance, life insurance and...
Austrac PLI ? notices to reporting entities
Posted on September 29, 2009Public Legal Interpretation 12 sets out AUSTRAC?s views on its powers to serve notices on reporting entities under the AML/CTF Act. The PLI does not cover the giving of infringement notices. Failure to comply with a notice may be either...
ASIC's approach to insurance telephone marketing
Posted on September 29, 2009ASIC has published details of the resolution of its concerns with AEGON Direct Marketing Services Australia Pty Ltd (ADMS) that some telephone sales of life risk insurance products may have been misleading, or likely to mislead consumers. ASIC was concerned...
Draft model OHS Act released for comment
Posted on September 28, 2009The Workplace Relations Ministers' Council through Safe Work Australia has released the draft model Occupational Health and Safety Act and administrative regulations for public comment until 9 November 2009. The new occupational health and safety reform agenda aims to harmonise...
Financial Stability Board Compensation Principles Implementation
Posted on September 26, 2009In conjunction with the recent G20 meeting the Financial Stability Board has issued Implementation Standards for its Principles for Sound Compensation Practices for financial institutions. The Implementation Standards contain detailed specific proposals on compensation governance, pay structure and risk alignment...
Margin Lending: draft disclosure regulations and sample PDS
Posted on September 24, 2009Treasury has released draft regulations for margin lending disclosure and an example Product Disclosure Statement for public consultation until 23 October 2009. The draft regulations and an example Product Disclosure Statement (PDS) were developed by the Financial Services Working Group...
Australian remuneration governance standards for financial institutions and insurers
Posted on September 22, 2009This article by me was first published by Complinet. The Australian Prudential Regulation Authority (APRA) has started a second round of consultation on changes to its governance standards for authorised deposit-taking institutions (ADIs), general insurers and life insurers (currently contained...
Commonwealth legislation update
Posted on September 19, 2009Commonwealth Parliament is in recess and will next sit on 19 October 2009. Bills awaiting passage include: Corporations Amendment (Improving Accountability on Termination Payments) 2009 Corporations Legislation Amendment (Financial Services Modernisation) 2009 National Consumer Credit Protection 2009 Personal Property Securities...
ACCC supermarket competition agreement
Posted on September 19, 2009The Australian Competition and Consumer Commission has announced that agreement had been reached with Coles Group Limited and Woolworths Limited to phase out all restrictive provisions in supermarket leases. Both companies have agreed that they will not include restrictive provisions...
Do you "drop test" your products and services?
Posted on September 17, 2009I discussed product safety issues at a recent Trade Practices Act training session I gave. A retailer said that apart from other precautions (including compliance with safety standards), he always gave products a "drop test" before he bought them for...
Employee Share Schemes: Application and Transitional Provisions
Posted on September 15, 2009Treasury is consulting until 22 September on the application and transitional provisions for the proposed employee share scheme changes, which were not included in the exposure draft bill.
ASIC paper on handling market rumours
Posted on September 15, 2009ASIC has released a Consultation Paper, Responsible handling of rumours, outlining proposed principles and guidelines designed to assist market participants in their dealing with market rumours. The proposed principles to assist AFS licensees when handling rumours, include: a requirement to...
Lost members' superannuation accounts
Posted on September 13, 2009The 2009-10 Budget contained an announcement that superannuation providers will be required to transfer lost accounts which have balances less than $200, and those accounts which have been inactive for a period of five years and for which there are...
GST administration changes
Posted on September 13, 2009Assistant Treasurer, Senator Nick Sherry, has released a second consultation paper on reforms to goods and services tax (GST) administration. The announced measures implement recommendations made by the Board of Taxation in a report to the Government last year...
Tax changes
Posted on September 10, 2009The Tax Laws Amendment (2009 Measures No. 4) Bill 2009 has been passed by the Commonwealth Parliament. The Bill contains: reforms to the regulation of philanthropic funds, now called private ancillary funds (previously prescribed private funds) changes to the Research...
Response to the global banking crisis
Posted on September 10, 2009The Group of Central Bank Governors and Heads of Supervision, the oversight body of the Basel Committee on Banking Supervision, met on 6 September 2009 to review a comprehensive set of measures to strengthen the regulation, supervision and risk management...
Use of credit ratings in disclosure documents
Posted on September 10, 2009ASIC has issued Consultation Paper 117 seeking public comment on whether to withdraw current class order relief that allows issuers of investment products to cite credit ratings in disclosure documents without the consent of credit rating agencies. Currently a class...
Positive credit reporting and responsible lending
Posted on September 09, 2009This article by me was first published in Retail Banking Review. It was written before the ASIC consultation paper on responsible lending was issued (see here) but is otherwise up to date. When the Australian Law Reform Commission recommended in...
Senate reports on director and executive termination payments
Posted on September 08, 2009The Senate Economics Committee has published its report on the Corporations Amendment (Improving Accountability on Termination Payments) Bill 2009. The Committee recommended that the Bill which lowers the threshold for shareholder approval for termination payments in excess of 12 months...
Financial market licence requirements for professional markets
Posted on September 07, 2009ASIC has released a consultation paper and proposed regulatory guidance on criteria for exemption from Australian financial market licence provisions for professional markets. ASIC will recommend exemptions for markets where all of the following defining characteristics are present: users are...
Senate reports on Australian Consumer Law
Posted on September 07, 2009The Senate Standing Committee on Economics has released its report on the Trade Practices Amendment (Australian Consumer Law) Bill 2009. It recommended the Bill be passed. Recommendations The report considers submissions in respect of uncertainty caused by the Bill: the...
Senate reports on Financial Services Modernisation BIll
Posted on September 07, 2009As part of its report on the National Consumer Credit Reform Package (also see here), the Senate Economics Committee has reported on the Corporations Legislation Amendment (Financial Services Modernisation) Bill 2009 which regulates margin lending, promissory notes and trustee corporations...
Further APRA consultation on remuneration for ADI's and insurers
Posted on September 07, 2009The Australian Prudential Regulation Authority (APRA) has released a second consultation package on remuneration for authorised deposit?taking institutions (ADIs) and general and life insurance companies. The second package comprises a response paper to the submissions to the previous paper, together...
Stage 3 award modernisation
Posted on September 05, 2009The Award Modernisation Full Bench of the Australian Industrial Relations Commission has issued a decision and the Stage 3 modern awards
Company losses
Posted on September 05, 2009The Assistant Treasurer, Senator the Hon Nick Sherry, has released exposure draft legislation to improve the income tax company losses regime and associated explanatory material. The exposure draft legislation implements announced changes to the company loss recoupment rules to improve...
Draft AML/CTF Rules relating to friendly society closed funds and grain warehousing
Posted on September 05, 2009Austrac has released 2 new draft Rules for public consultation until 18 September 2009: Friendly society closed funds: These draft AML/CTF Rules exempt from the AML/CTF Act, reporting entities who provide item 37 (issuing a life policy), item 38 (accepting...
TOFA changes
Posted on September 05, 2009The Assistant Treasurer, Senator Nick Sherry,has announced several amendments to the income tax law relating to the Taxation of Financial Arrangements, (TOFA). The changes include: the interaction of TOFA and the pay as you go (PAYG) instalments system...
Termination Payments Regulations
Posted on September 03, 2009The Minister for Financial Services, Superannuation and Corporate law, Chris Bowen MP, has released the final Regulations and explanatory material in relation to the proposed reforms to termination payments in the Corporations Amendment (Improving Accountability on Termination Payments) Bill 2009...
Austrac Public Legal Interpretation No. 11 ? Electronic funds transfer instructions
Posted on September 01, 2009AUSTRAC has released Public Legal Interpretation (PLI) 11 which covers electronic funds transfer instructions (EFTIs) and international funds transfer instructions (IFTIs), as detailed in the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act)...
Privacy Case Notes 7 - 11 for 2009
Posted on August 31, 2009The Privacy Commissioner has issued 5 new case notes: In Own Motion Investigation v Airline [2009] PrivCmrA 7 the Privacy Commissioner investigated a report that an airline had failed to protect its passengers' privacy. An individual had accessed the airline's...
New AML/CTF Rules
Posted on August 26, 2009The Anti-Money Laundering and Counter-Terrorism Financing Rules Amendment Instrument 2009 (No.4) has been registered. The rule covers definition of 'certified copy' and 'certified extract'; corporate treasuries; threshold transaction reporting for authorised deposit-taking institutions; sale of shares for charitable purposes; and...
Product safety information
Posted on August 25, 2009The ACCC is the responsible Commonwealth agency for product safety under the Trade Practices Act. How do you find out what has been banned, recalled or is the subject of product safety or information standards? You can sign up for...
Draft personal bankruptcy reform bill released
Posted on August 24, 2009Attorney-General, Robert McClelland, has released the exposure draft Bankruptcy Legislation Amendment Bill 2009 containing the Government?s proposed reforms to Australia?s personal bankruptcy laws for public consultation. The proposed amendments will: increase the minimum debt for which a creditor can petition...
ASIC to take over supervision of financial market trading
Posted on August 23, 2009The Treasurer, Wayne Swan MP and the Minister for Financial Services, Superannuation and Corporate Law, Chris Bowen MP, have announced changes to the supervision of Australia's financial markets. The Government has decided to provide for the Australian Securities and Investments...
Renewable energy targets
Posted on August 22, 2009The Senate has passed the Renewable Energy (Electricity) Amendment Bill 2009 and the Renewable Energy (Electricity) (Charge) Amendment Bill 2009 in order to implement a national Renewable Energy Target scheme with the goal of increasing to 20 per cent the...
Draft Corporations Amendment Regulations 2009: margin loans, trustee corporations and debentures
Posted on August 22, 2009The Minister for Financial Services, Superannuation and Corporate Law, Chris Bowen MP,has released for public comment draft Regulations and explanatory material for the Corporations Amendment Regulations 2009 in relation to margin loans, trustee corporations and debentures...
James Hardie directors penalty decision
Posted on August 20, 2009In Australian Securities and Investments Commission v Macdonald (No 12) [2009] NSWSC 714 Justice Gzell of the New South Wales Supreme Court refused to exonerate the former James Hardie directors and executives who contravened section 180(1) Corporations Act in Australian...
Draft AML/CTF Rules relating to cashing out of low balance superannuation
Posted on August 20, 2009Austrac has released draft AML/CTF Rules exempting superannuation funds from carrying out the customer identification requirements of the AML/CTF Act on customers where the superannuation account balance is not greater than $1,000, the whole of the interest of the customer...
Senate reports on Personal Property Securities Bill 2009
Posted on August 20, 2009The Senate Legal and Constitutional Affairs Legislation Committee's Report on the Personal Property Securities Bill 2009 recommends passage of the Bill be deferred until 30 September 2009 to allow time for consideration of outstanding issues, including privacy issues.
First SMS Spam Act case
Posted on August 18, 2009In Australian Communications and Media Authority v Mobilegate Ltd A Company Incorporated in Hong Kong (No2) [2009] FCA 887, the Australian Communications and Media Authority (ACMA) succeeded in obtaining injunctions and declarations against a number of parties involved in the...
Do Not Call Register Act 2006 Compliance Guide
Posted on August 18, 2009ACMA has released the Do Not Call Register Act 2006 Compliance Guide to provide telemarketers with detailed guidance about measures they can take to comply with the Do Not Call Register legislation. The guide encourages telemarketers to aim for best....
Is there a risk in attending board meetings remotely?
Posted on August 18, 2009In recent years changes to electronic technology and the law (Section 248D Corporations Act) have allowed directors to attend board meetings by telephone, video conferencing or over the internet. But does that result in an effective meeting? I suspect that...
CAMAC report on board diversity
Posted on August 17, 2009The Corporations and Markets Advisory Committee (CAMAC) has released its report Diversity on boards of directors. In considering diversity on corporate boards, the report looks at: the role and structure of boards, including the processes by which directors are appointed...
Hardship withdrawals from frozen mortgage funds
Posted on August 17, 2009ASIC has announced changes to hardship withdrawals from frozen mortgage funds. These changes expand the circumstances in which operators are able to make payments to fund members who demonstrate the need to access funds on hardship grounds. The changes to...
Prudent practices for APRA-regulated superannuation trustees
Posted on August 15, 2009The Australian Prudential Regulation Authority (APRA) has released draft guidance on a number of prudent practices for APRA-regulated superannuation trustees. APRA has also released a discussion paper to assist in public consultation on the four new draft guides: draft Superannuation...
Brokers targeted for earlier responsible lending start
Posted on August 15, 2009The Minister for Financial Services, Superannuation and Corporate Law, Chris Bowen MP, has announced the responsible lending conduct requirements for brokers and all other lenders which are not Authorised Deposit-taking Institutions or Registered Finance Companies, will now apply from 1...
Taxation treatment of employee share schemes
Posted on August 15, 2009Treasury has released an exposure draft package of the new taxation treatment of share and rights acquired under employee share schemes for comment. The package includes: an exposure draft version of Schedule 1 to Tax Laws Amendment (2009 Budget Measures...
HSBC UK fined for privacy breaches
Posted on August 11, 2009The UK Financial Services Authority (FSA) has fined three HSBC firms over £3 million for not having adequate systems and controls in place to protect their customers' confidential details from being lost or stolen. These failings contributed to customer data...
SCAG Personal Property Securities update
Posted on August 08, 2009The Standing Committee of Attorneys General (SCAG) Communique from its meeting on 6 and 7 August 2009 discusses, amongst other things, progress on personal property securities reform. The Commonwealth introduced the PPS Bill into Parliament on 24 June 2009...
APRA: lessons learned
Posted on August 08, 2009APRA Chair John Laker has published his speech, Enhancing the competitiveness of financial services - lessons learnt and opportunities for improvement. He focusses on remuneration policies and risk management of complex products.
ASIC consultation paper on over-the-counter derivatives
Posted on August 08, 2009ASIC has released a consultation paper, Client money relating to dealing in OTC derivatives (CP 114), which contains proposals to improve disclosure by a financial services licensee dealing in OTC (over the counter) derivatives . The paper also clarifies how...
Unsolicited credit cards and debit cards
Posted on August 06, 2009ASIC has released Regulatory Guide 201 Unsolicited credit cards and debit cards (RG 201). RG 201 clarifies ASIC?s interpretation of the scope of s12DL of the Australian Securities and Investments Commission Act 2001, which prohibits a person from sending unsolicited...
Changes to rules for foreign investment in Australia
Posted on August 05, 2009The Treasurer has announced reforms to Australia's foreign investment rules. The Government will: Replace the four current lowest thresholds for private business investment with a single threshold of 15 per cent in a business worth $219 million. This means private...
Disability Discrimination amendment
Posted on August 05, 2009ComLaw has issued an updated consolidated Disability Discrimination Act 1992 containing recent amendments. Key amendments to the Disability Discrimination Act are those that: make explicit that refusal to make reasonable adjustments for people with disability may also amount to discrimination...
APRA alleges victimisation under section 68 of the Superannuation Industry (Supervision) Act
Posted on August 05, 2009APRA has made a criminal complaint that a former chief executive officer of the Queensland Retailers and Shopkeepers Association (QRTSA), victimised two directors of a superannuation trustee company. APRA alleges that by terminating the employment of a QRTSA employee and...
Austrac changes supervisory strategy
Posted on August 03, 2009AUSTRAC has released its supervision strategy for 2009-10 outlining its approach to supervising compliance across the different industry sectors it regulates under Australia's anti-money laundering and counter-terrorism financing laws as it moves from a start-up stage to "business as usual...
ASIC relief applications report December 2008 to March 2009
Posted on August 03, 2009ASIC has released a report outlining recent decisions on applications for relief from the corporate finance, financial services and managed investment provisions of the Corporations Act 2001 between 1 December 2008 and 31 March 2009. The report covers relief applications...
CAMAC market integrity report
Posted on August 01, 2009The Corporations and Markets Advisory Committee (CAMAC) has released its report Aspects of market integrity . The report deals with a number of practices that have the potential to damage the integrity of the market and investor confidence. These practices...
Langes+ combined feed now available
Posted on August 01, 2009If you haven't looked at our website lately you won't be aware that you can either subscribe to our various newsfeeds individually or to one new feed that combines all our feeds so that you get all our latest updates...
Data breach prevention
Posted on July 30, 2009Australia does not yet have mandatory data breach notification laws (see last year's ALRC proposals) so we don't know about breaches other than those that get public notoriety (eg files dumped in bins, stolen laptops or forgotten CD's.) But we...
Board of Taxation Discussion Paper on GST and cross?border transactions
Posted on July 29, 2009The Board of Taxation has released a discussion paper on the Board?s review of the application of GST to cross?border transactions. The Government has asked the Board to consult widely with relevant stakeholders and report to the Government on improvements...
Senate Committee Termination Payments Bill reporting date extended
Posted on July 29, 2009The Senate Economics Legislation Committee's inquiry into the Corporations Amendment (Improving Accountability on Termination Payments) Bill 2009 has been extended as the committee requires more time to finalise its report. The committee intends to present the final report by Monday,...
Financial Ombudsman case studies
Posted on July 27, 2009The latest newsletter from the Financial Ombudsman Service (here) has 3 case studies worth reviewing to understand the Ombudsman's approach to resolving disputes: Financial planning advice: Mr and Mrs A complained about the advice they received from theirbank's financial planner...
Margin lending dispute resolution ASIC consultation paper
Posted on July 27, 2009The Corporations Legislation Amendment (Financial Services Modernisation) Bill 2009, if passed, will require margin lenders and advisers to obtain a licence and be subject to supervision and enforcement by ASIC. It will also give borrowers access to free external dispute...
Consolidated Trade Practices Act
Posted on July 26, 2009ComLaw has published a consolidated Trade Practices Act 1974 incorporating the anti-cartel provisions in Part IV.
Review of statutory implied conditions and warranties
Posted on July 26, 2009The Minister for Competition Policy and Consumer Affairs, the Hon Dr Craig Emerson MP, has released an Issues Paper, Consumer rights: Statutory implied conditions and warranties, on behalf of the Commonwealth Consumer Affairs Advisory Council (CCAAC)...
Further consultation on employee share schemes
Posted on July 23, 2009The Assistant Treasurer, Senator Nick Sherry, has released the timeframes for the final round of industry consultations on reforms to the taxation of employee share schemes, including releasing the Terms of Reference for the Board of Taxation review component...
Private health insurers governance standards
Posted on July 23, 2009We have set up a new site for private health insurers and you can read about the latest consultation draft of the PHIAC governance standards here.
Calculating monetary penalties
Posted on July 23, 2009The Commonwealth and most states express monetary penalties for breaches of laws as penalty units. The amount of one unit is then set out in a separate Act allowing for easy adjustment when necessary. The amount of a Commonwealth penalty...
National Credit Code overview: are you affected?
Posted on July 20, 2009This article by me was first published in Retail Banking Review. The new Minister for Financial Services , Superannuation and Corporate Law, Chris Bowen MP, introduced the 3 Bills in the consumer credit reform package into Parliament on 25th June...
Recent changes to intestacy provisions in NSW
Posted on July 16, 2009Changes to the legislation governing the administration of intestate estates (ie no will or the will is legally invalid) in NSW have recently been introduced. If you don't have a will or have children from more than one relationship it...
ASIC credit code regulatory guides
Posted on July 15, 2009ASIC has released details of the policy and guidance documents relating to the National Credit Code it proposes to issue in the coming months, together with an indicative timetable. In addition to the two papers already issued on conduct obligations....
AML/CTF Rules updated
Posted on July 15, 2009The Anti-Money Laundering and Counter-Terrorism Financing Rules Amendment Instrument 2009 (No.3)updates the AML/CTF Rules as follows: inserts definition of 'accredited translator' minor amendment to Chapter 19 extends designated business groups to accountancy and law practices exemption of correspondent banking relationships...
ACCC guidelines on cartel prosecutions
Posted on July 14, 2009The ACCC has published guidelines on how it will investigate alleged cartel arrangements under the anti-cartel laws that will commence on 24 July 2009. The guidelines also set out how the ACCC will make decisions in relation to referral of...
ASIC policy proposals on margin lending
Posted on July 13, 2009ASIC has released 2 policy proposals for public comment regarding the training requirements and financial requirements for firms that offer or advise on margin lending facilities. Consultation Paper 108 Margin lending: training of financial advisers(CP 108) and Consultation Paper 109...
GST and representatives of incapacitated entities
Posted on July 13, 2009Treasury has released exposure draft legislation to restore the position before the Federal Court decision in Deputy Commissioner of Taxation v PM Developments Pty Ltd [2008] that the representative of an incapacitated entity (such as a liquidator of a company...
Document retention table update
Posted on July 11, 2009Our general business document retention table has been updated to take into account AML/CTF requirements and the Fair Work Act. Every business should have a document retention (and destruction) policy to suit its own circumstances. Our table can be used...
Simplified superannuation advice guidelines
Posted on July 09, 2009The Australian Securities and Investments Commission (ASIC) has released class order relief for superannuation fund trustees (and their authorised representatives) who provide personal advice to fund members about their existing super fund. ASIC?s Regulatory Guide 200 and Class Order [CO...
SMSF borrowing: risks in member giving guarantee for loan
Posted on July 08, 2009The ATO's Taxpayer Alert TA 2008/05 "Certain borrowings by self managed superannuation funds ", discussed arrangements under which the trustee of a self managed superannuation fund (SMSF) enters into certain limited-recourse borrowings, which may not meet the conditions in subsection...
Reminder: National Credit Code seminars
Posted on July 08, 2009We will be holding a series of half day seminars on the new credit licensing and consumer credit regime as follows: Brisbane: Tuesday 11 August (Cliftons) Sydney: Wednesday 12 August (Grace Hotel) Melbourne: Thursday 13 August (venue to be advised)...
Reasons for tax bonus decision (Pape v Commissioner of Taxation)
Posted on July 07, 2009The High Court has published its reasons for its decision in April in Pape v Commissioner of Taxation [2009] HCA 23 that the tax bonus was constitutional. It is a long decision (614 paragraphs) split 6-1 in favour in 4...
COAG Communique 2 July 2009
Posted on July 05, 2009The Council of Australian Governments (COAG) meeting on 2 July 2009 focussed on further measures to overcome Indigenous disadvantage and the importance against the background of the global economic and financial crises of bolstering education, training and re-training efforts and...
Revised ACCC immunity policy for cartel conduct
Posted on July 05, 2009Following the introduction of criminal penalties for cartels, the ACCC has released its revised policy for the application of immunity in relation to cartel conduct. The immunity policy applies to civil proceedings instituted by the ACCC. Immunity from criminal prosecution...
ASIC consults on securities lending
Posted on July 05, 2009ASIC has released a consultation paper on disclosure of substantial holdings arising from securities lending or prime broking. The consultation paper, Securities lending and substantial holding disclosure, seeks to improve disclosure of substantial holdings in practice and makes it clear...
Superannuation industry overview
Posted on July 04, 2009APRA's latest Insight magazine contains an overview of the superannuation industry since 2007. It is a useful summary of the impact of the economy on superannuation funds as well as regulatory developments.
Final decision on taxation of employee share schemes
Posted on July 01, 2009The Assistant Treasurer, Senator Nick Sherry, has released a Policy Statement setting out the final taxation treatment of shares and rights acquired under employee share schemes, effective from 1 July 2009. Under the arrangements outlined on Budget night in May,...
Austrac enforceable undertakings
Posted on July 01, 2009AUSTRAC has commenced a new enforceable undertakings regime. An enforceable undertaking is a written undertaking that is enforceable in a court, given to and accepted by the AUSTRAC CEO. They are generally an alternative to civil or administrative action where...
ASIC identifies financial report focus areas
Posted on June 30, 2009ASIC has highlighted a number of areas on which company Boards and those responsible for the preparation of financial reports should focus in the upcoming reporting period. It has identified going concern (solvency), valuation of assets and off-balance sheet arrangements...
New legislation review
Posted on June 28, 2009Parliament is on a winter break and will next sit from 11 to 20 August 2009. It's left us with some significant new Bills to review: Australian Consumer Law and Trade Practices Amendments National Consumer Credit Reform Package Personal Property...
AUSTRAC Typologies and Case Studies Report 2009
Posted on June 25, 2009AUSTRAC has issued a new typologies report which outlines some of the latest money laundering methods and other financial crimes in Australia. The AUSTRAC Typologies and Case Studies Report 2009 presents a range of case studies that highlight illicit activities...
Financial services regulation: margin loans, trustee companies and debentures
Posted on June 25, 2009The Minister for Financial Services, Superannuation and Corporate Law, Chris Bowen MP,has introduced the Corporations Legislation Amendment (Financial Services Modernisation) Bill 2009 into Parliament. The Bill addresses three key areas of financial services regulation: Margin lending Trustee companies Debentures and...
Director, managerial and executive termination benefits
Posted on June 24, 2009The Government has introduced the Corporations Amendment (Improving Accountability on Termination Payments) Bill into Parliament. It inserts new sections 200AA and 200AB in the Corporations Act and amends sections 200A-G and J relating to the payment of termination benefits to...
Australian Consumer Law introduced
Posted on June 24, 2009The Government has introduced the Trade Practices Amendment (Australian Consumer Law) Bill 2009 into Parliament. If passed, the Bill will amend the Trade Practices Act 1974 by adding the Australian Consumer Law dealing with unfair contract terms as a schedule...
National Consumer Credit Protection Reform Package introduced
Posted on June 24, 2009The Minister for Financial Services, Superannuation and Corporate Law, Chris Bowen MP, has introduced the Government's national consumer credit laws into Parliament. The regime will establish a single, standard, national law for the regulation of consumer credit...
Private Ancillary Funds: new tax guidelines for private philanthropy
Posted on June 24, 2009The Assistant Treasurer, Senator Nick Sherry, has introduced into Parliament the Tax Laws Amendment (Measures No 4) Bill 2009, which establishes a new legal framework for prescribed private funds from 1 October 2009. Prescribed private funds, which are now to...
Personal Property Securities Bill 2009 introduced
Posted on June 23, 2009The Attorney-General, Robert McClelland,has introduced the Personal Property Securities Bill 2009 into Parliament. Its object is to create a comprehensive national system of personal property securities (PPS) law. PPS law governs how personal property may be used as security for...
Responding to sexual harassment claims
Posted on June 23, 2009In Poniatowska v Hickinbotham [2009] FCA 680 the Federal Court found an employer discriminated against Ms Poniatowska on the ground of her sex, and contravened s 14(2)(c) of the Sexual Discrimination Act by so discriminating against her by dismissing her...
National Credit Code seminars
Posted on June 23, 2009We will be holding a series of half day seminars on the new credit licensing and consumer credit regime as follows (venues to be advised): Brisbane: Tuesday 11 August Sydney: Wednesday 12 August (Grace Hotel) Melbourne: Thursday 13 August Adelaide:...
New Langes partner appointed: Patrick Dwyer
Posted on June 23, 2009We're delighted to announce that Patrick Dwyer will be joining Langes as a partner from 1 July. He will be based in our Sydney office. Patrick was previously General Counsel Home Lending with GE Money. He's been with GE for...
Draft regulations for the Carbon Pollution Reduction Scheme
Posted on June 20, 2009The Commonwealth Government has released draft regulations for the Carbon Pollution Reduction Scheme, including the first tranche of activities that will be eligible for assistance under the emissions intensive, trade exposed (EITE) assistance program...
New rules for credit providers lending to Victorians: unfair contract terms and EDR scheme for credit
Posted on June 20, 2009If you provide credit to Victorian residents (even if your business is based outside Victoria) you are affected by the Victorian Fair Trading and Other Acts Amendment Act 2009 which commenced operation on 11 June 2009. The 2 main requirements...
Anti- cartel law passed
Posted on June 18, 2009The Trade Practices Amendment (Cartel Conduct and Other Measures) Bill 2009 has been passed by Parliament. The Bill establishes criminal penalties for serious cartel conduct that was already prohibited under existing civil prohibitions of the Trade Practices Act...
New ASIC disclosure rules
Posted on June 18, 2009ASIC has released new measures for market disclosure in capital raisings and unlisted disclosing entities. Disclosure in capital raising by ASX-listed companies The policies allow listed companies and managed investment schemes engaging in equity raisings increased scope to update the...
1 July tax changes
Posted on June 18, 2009The Assistant Treasurer has reminded us of the following tax changes effective 1 Juy 2009: The 30 per cent marginal tax threshold will rise from $34,001 to $35,001 and the 40 per cent marginal tax rate will be reduced to...
Anti-cartel law passed
Posted on June 18, 2009The Trade Practices Amendment (Cartel Conduct and Other Measures) Bill 2009 has been passed by Parliament. The Bill establishes criminal penalties for serious cartel conduct that was already prohibited under existing civil prohibitions of the Trade Practices Act...
Board of Taxation Post-Implementation Reviews
Posted on June 16, 2009The Assistant Treasurer has announced that the Board of Taxation will undertake post-implementation reviews of certain aspects of the consolidation regime and the provisions relating to the alienation of personal services income. The Board will conduct the alienation of personal...
Tax forward work program
Posted on June 16, 2009The Government's forward work program sets out the consultation it plans for announced tax measures and indicates the tax legislation it plans to introduce in the 2009 Winter Parliamentary sittings. The forward work program includes: improving the Integrity of Prescribed...
GST state duty reform delayed
Posted on June 16, 2009A key part of the introduction of GST was the agreement by the state governments to remove state-based duties by 2010. The new Intergovernmental Agreement on Federal Financial Relations contained an agreement by the states to abolish, before 1 July...
ASIC financial services update
Posted on June 14, 2009In a speech by ASIC Deputy Chairman Jeremy Cooper which could be his last before he becomes chair of the Review into the Governance, Structure,Efficiency and Operation of Australia's Superannuation System he starts his regulatory review of Financial Services by...
Preparing for your AGM
Posted on June 11, 2009It's that time of the year: finalise your end of financial year accounts and start thinking about Constitution changes and resolutions for your AGM. And here's what happens if you get it wrong. This is a video (only 33 seconds)...
Sanctions against the former federal republic of Yugoslavia
Posted on June 11, 2009The Reserve Bank has updated its list of individuals (available here) associated with the former government of the Federal Republic of Yugoslavia who are subject to financial sanctions. Any transactions involving the transfer of funds or payments to, by the...
Small business tax relief
Posted on June 11, 2009In a recent speech Michael D'Ascenzo, Commissioner of Taxation announced new measures to help small businesses that are having difficulty paying their tax debt: The ATO is providing a 12 month general interest charge (GIC)-free payment arrangement for all businesses...
Austrac: when will it issue a "no action" letter?
Posted on June 08, 2009Austrac has issue a draft amended guidance note 08/01 giving more details of when it will issue a no action letter rather than grant an exemption request for a breach or anticipated breach of the Anti-Money Laundering and Counter-Terrorism Financing....
Commonwealth Government Ministry changes
Posted on June 06, 2009Prime Minister Kevin Rudd has announced changes to his Ministry following the resignation of Joel Fitzgibbon and his replacement by Senator the Hon John Faulkner as Minister for Defence. The changes include: Senator the Hon Joseph Ludwig will become Cabinet...
Disclosure of Equity Derivative Products
Posted on June 06, 2009Senator Nick Sherry, Minister for Superannuation and Corporate Law, has released an industry issues paper, Improving Australia's Framework for Disclosure of Equity Derivative Products, on the issue of the regulation and disclosure of equity derivatives...
Ratings user reforms
Posted on June 06, 2009Senator Nick Sherry, Minister for Superannuation and Corporate Law, has released a report on ratings user reforms, compiled by Treasury and the Australian Securities and Investments Commission (ASIC), The report contains four recommendations, all of which are accepted by the...
Tightening the Non-Commercial Loan Rules in Division 7A of the Income Tax Assessment Act 1936
Posted on June 05, 2009The Government has released a Treasury discussion paper on its 2009-10 Budget decision to tighten the non-commercial loan rules in Division 7A of the Income Tax Assessment Act 1936. Division 7A provides tax integrity rules designed to prevent private companies...
Employee share schemes consultation paper and draft bill
Posted on June 05, 2009The Government has issued a consultation paper and draft legislation on the tax treatment of Employee Share Schemes following criticism of its Budget proposal. The Government proposes to modify the Budget measure as announced to: raise the income threshold for...
SA Lands Titles Office (LTO) News
Posted on June 04, 2009Mortgage Stamp Duty Stamp duty on mortgages in South Australia will be abolished from 1 July 2009. This will apply to all new loans and further advances that are funded after 1 July 2009. Initially it seems that it will...
Private health insurance coverage
Posted on June 04, 2009The Senate Community Affairs Committee is conducting an Inquiry into the Private Health Insurance Legislation Amendment Bill 2009 If the Bill is passed, the amendments will add a category of "dependent child" under the Private Health Insurance Act 2007 by...
Fair Work Act unfair dismissal provisions commence 1 July
Posted on June 04, 2009The Fair Work Act unfair dismissal provisions will commence on 1 July 2009. The Act defines a small business employer for unfair dismissal purposes as being one who employs: until 1 January 2011, less than 15 full time equivalent employees;...
Senate Inquiry into Private Health Insurance
Posted on June 03, 2009The Senate has referred the The Fairer Private Health Insurance Incentives Bill 2009, the Fairer Private Health Insurance Incentives (Medicare Levy Surcharge) Bill 2009 and the Fairer Private Health Insurance Incentives (Medicare Levy Surcharge ? Fringe Benefits) Bill 2009 to...
New Queensland Freedom of Information regime
Posted on June 02, 2009The Queensland Parliament has passed the Information Privacy Bill 2009 and Right to Information Bill 2009 to replace its Freedom of Information regime in relation to the right for individuals to access and amend their personal information held by public...
Taxation treatment of disposals of investments by Managed Investments Trusts
Posted on June 02, 2009The Assistant Treasurer, Chris Bowen MP,has announced the release of a Treasury discussion paper on proposed changes to the taxation treatment of disposals of investments by Managed Investments Trusts (MITs). The discussion paper is seeking comment on the design and...
Taxation treatment of off-market share buybacks
Posted on June 02, 2009On 12 May 2009 the Assistant Treasurer and Minister for Competition Policy and Consumer Affairs, the Hon Chris Bowen MP, announced that the Government will implement the recommendations made by the Board of Taxation to improve the taxation treatment of...
Access to Share Registers and the Regulation of Unsolicited Off Market Offers
Posted on May 30, 2009The Minister for Superannuation and Corporate Law has released for public consultation an options paper: Access to Share Registers and the Regulation of Unsolicited Off Market Offers. The paper puts forward a range of options to address the continuing practice...
Review into Australia?s superannuation system
Posted on May 30, 2009Senator Nick Sherry, Minister for Superannuation and Corporate Law, has announced the details of the Review into the governance, efficiency, structure and operation of Australia?s superannuation system including the membership of the Expert Panel and the Terms of Reference...
ASIC reviews the GFC
Posted on May 30, 2009In Regulatory issues arising from the financial crisis for ASIC and for market participants, ASIC Chair Tony D'Aloisio argues that " a significant feature of the collapses which have been part of this wealth destruction, has been flawed business models...
Review of Non-Forestry Managed Investment Schemes
Posted on May 30, 2009The Assistant Treasurer and Minister for Competition Policy and Consumer Affairs, Chris Bowen MP,has released the findings of a review of non-forestry agricultural managed investment schemes (MIS). The review examined the costs and benefits of non?forestry MIS, and assessed whether...
Remuneration policies of ADI's and insurers: draft governance standards
Posted on May 28, 2009The Australian Prudential Regulation Authority (APRA) has released a consultation package on remuneration for authorised deposit?taking institutions and general and life insurance companies.The consultation package comprises a discussion paper, draft extensions to the governance standards already applying in these industries...
ASIC lifts ban on covered short selling of financial securities
Posted on May 24, 2009ASIC has lifted the ban on covered short selling of financial securities (as defined in AD08-65 ASIC lifts ban on covered short selling for non-financial securities) from 10am on 25 May 2009. ASIC lifted the ban on covered short selling...
Draft AML/CTF Rules for 'exempt legal practitioner service'
Posted on May 23, 2009Austrac has issued draft AML/CTF Rules to define the term 'exempt legal practitioner service' under section 5 of the AML/CTF Act. It will apply to legal practitioners who provide designated services relating to 'a custodial or depository service' (item 46)...
Employee share schemes
Posted on May 23, 2009The Treasurer's announcement on 12 May 2009 of 2 changes to employee share scheme tax concessions has created a lot of publicity suggesting a winding-down of these schemes. The changes (which will apply to shares and options acquired after 7.30pm...
Conduct and disclosure obligations for financial advisers
Posted on May 23, 2009ASIC has released an updated Regulatory Guide 175 Licensing: Financial product advisers ? Conduct and disclosure (RG 175). The update is a consolidation of guidance previously provided by ASIC, including guidance through ASIC?s frequently asked questions about financial services and...
Weekend video: A different kind of leadership thinking
Posted on May 21, 2009In this video Ricardo Semler gives examples of longstanding problems and asks why a solution has not been found. For example why are automobiles made essentially the same way today as they were in Ford?s first assembly line 100 years...
Regulation of insurance groups
Posted on May 21, 2009In Insurance Group Regulation - A Comparative Case Study: Australia and the United States John Trowbridge, Executive Member, Australian Prudential Regulation Authority, examines the "AIG problem" involving the supervision of more than 150 AIG subsidiaries in many different countries notwithstanding...
External dispute resolution scheme changes
Posted on May 18, 2009The Australian Securities and Investment Commission (ASIC) has released revised 2 guidance on dispute resolution schemes: RPG 139 and RPG 165. The changes announced by ASIC will also introduce a new "compensation caps" approach which means all EDRs will be...
ACMA registers Mobile Premium Services Code
Posted on May 18, 2009ACMA has registered the industry-developed Mobile Premium Services Code, which will be legally binding from 1 July 2009. The code sets out detailed rules covering a range of important matters including procedures to be followed for subscribing to premium SMS...
Austrac Public Legal Interpretation No. 3 of 2008 ? remittance services providers
Posted on May 16, 2009PLI 3 of 2008 discusses who is a provider of a ?registrable designated remittance service? and the obligation to register as a provider of ?registrable designated remittance services?.
Senate Inquiry into the Carbon Pollution Reduction Scheme Bill 2009
Posted on May 16, 2009The Senate has referred the provisions of the Carbon Pollution Reduction Scheme Bills, to the Senate Standing Committee on Economics for inquiry and report by 15 June 2009. Submissions can be made until 4 June.
Debt collection practices in Australia
Posted on May 14, 2009The ACCC has released an issues paper jointly produced by the ACCC and the Australian Securities and Investments Commission, Debt collection practices in Australia. This paper summarises major issues identified by the ACCC and ASIC during information-gathering activities undertaken in...
Taxation Review Reports
Posted on May 14, 2009The Board of Taxation has released 3 reports: Review of the Legal Framework for the Administration of the GST Review of the Anti-Tax-Deferral Regimes Review of the Taxation Treatment of Off-Market Share Buybacks
Exposure draft: Tax Law Amendment (Prescribed Private Funds) Bill
Posted on May 14, 2009The Assistant Treasurer, Chris Bowen MP,has released an exposure draft of the Tax Law Amendment (Prescribed Private Funds) Bill. PPFs are a form of ancillary trust fund designed to encourage private philanthropy by providing private groups, such as businesses, families...
Current APRA superannuation issues
Posted on May 14, 2009APRA General Manager, Ramani Venkatramani has reviewed APRA's current focus on superannuation in this speech. The speech focuses on licensing outcomes, finance remuneration, and fund research. APRA is currently reviewing: the role of environmentally sustainable considerations in setting investment strategies...
Government's response to Word Investments case
Posted on May 12, 2009The government has released its interim response to the High Court decision in Federal Commissioner of Taxation v Word Investments Ltd. The government will amend the ?in Australia? requirements in Div 50 of ITAA 1997 to ensure that parliament retains...
Retirement incomes report released
Posted on May 12, 2009The Treasurer has announced the release of the report of Australia's Future Tax System Review Panel into retirement incomes. The report finds that Australia's three?pillar retirement income system ? consisting of the means tested Age Pension, compulsory saving through the...
Proposed expansion of the Do Not Call Register
Posted on May 12, 2009The Minister for Broadband, Communications and the Digital Economy, Senator Stephen Conroy has announced that the 2009-10 Budget provides for expansion of the Do Not Call Register to cover telephone numbers for businesses, fax users and emergency service providers, It...
Paid parental leave
Posted on May 12, 2009The Government's 2009-10 Budget provides for the introduction of a Paid Parental Leave scheme from 1 January 2011. This government-funded scheme will provide the primary carer (whether the mother or the father) with 18 weeks post-natal leave, paid at the...
2009-10 Budget details for business
Posted on May 12, 2009The Budget details have been released. Worth noting are: The Small Business and General Business Tax Break will be expanded to allow a bonus deduction of 50 per cent to small businesses with a turnover of less than $2 million...
Superannuation changes
Posted on May 12, 2009The Budget contains the following changes to superannuation contributions concessions: The Government will reduce the cap on concessional superannuation contributions from $50,000 to $25,000. This cap will be indexed. The existing transitional cap for concessional contributions for those aged 50...
First Home Owners Grant to be reduced
Posted on May 12, 2009The First Home Owners Grant will be phased down to its original amount over six months: For eligible first home buyers entering into contracts between 1 July 2009 and 30 September 2009 (inclusive) the First Home Owners Boost will continue...
Australian Consumer Law: unfair contract terms consultation
Posted on May 11, 2009The Assistant Treasurer and Minister for Competition Policy and Consumer Affairs, the Hon Chris Bowen MP, has released for public consultation a consultation paper entitled The Australian Consumer Law: Consultation on draft provisions on unfair contract terms...
Ministerial Council on Consumer Affairs meeting 8 May 2009
Posted on May 09, 2009The Ministerial Council on Consumer Affairs (MCCA) met in Hobart on 8 May 2009 to develop an Intergovernmental Agreement on the new national consumer policy framework by 30 June 2009 that will lead to putting the new Australian Consumer Law...
Managing IT security risks
Posted on May 09, 2009The Australian Prudential Regulation Authority (APRA) has released for consultation discussion paper and accompanying draft Prudential Practice Guide PPG 234 Management of IT Security Risk on the management of information technology (IT) security risks by institutions regulated by APRA...
Privacy fact sheets updated
Posted on May 07, 2009The Privacy Commissioner has issued a new Fact Sheet on Data Quality and an updated Fact Sheet on Access and Correction. The Fact Sheets explain the relevant National Privacy Principles that apply to private sector businesses. The private sector provisions...
APRA releases draft standards for life insurers
Posted on May 07, 2009The Australian Prudential Regulation Authority (APRA) has released a consultation package on proposals to enhance the prudential framework for life insurance companies. The package, which contains a discussion paper and four draft prudential standards, seeks comments on proposed changes to:...
Anti-competitive creeping acquisitions under review
Posted on May 06, 2009The Assistant Treasurer and Minister for Competition Policy and Consumer Affairs, Chris Bowen MP, has released a discussion paper on creeping acquisitions. The term creeping acquisitions refers to the acquisition of a number of individual assets or businesses over time...
Draft Financial Services Modernisation Bill released
Posted on May 06, 2009Senator Nick Sherry, Minister for Superannuation and Corporate Law, has released the Corporations Legislation Amendment (Financial Services Modernisation) Bill 2009 . The Bill, if passed, provides for the national regulation of trustee companies, margin loans and debentures...
Clarity in pricing commences on 25 May
Posted on May 06, 2009A new Section 53C of the Trade Practices Act will commence on 25 May 2009. The amendments require that where a business makes a price representation to a consumer and that amount is less than what the consumer will actually...
Keeping track of regulation changes: when is an announcement an ?aspiration? or a real law?
Posted on May 05, 2009This article by me was first published in Retail Banking Review. A media release, speech or interview transcript is not the equivalent of a new law passed by Parliament regardless of the language used by a Government Minister. In these...
Carbon Pollution Reduction Scheme changes
Posted on May 04, 2009The Prime Minister has announced that the Carbon Pollution Reduction Scheme will now be phased in from 1 July 2011 and a new 25 per cent by 2020 target has been proposed.(see here) The changes include: 1. A delay in...
Draft Corporations Amendment (Improving Accountability on Termination Payments) Bill 2009 released
Posted on May 04, 2009Senator Nick Sherry, Minister for Superannuation and Corporate Law, has released an exposure draft of the Corporations Amendment (Improving Accountability on Termination Payments) Bill 2009 and Regulations. The Bill will change the regulatory framework relating to the payment of termination...
Privacy Commissioner complaint case notes 1 - 6 for 2009
Posted on May 04, 2009The Australian Privacy Commissioner, Karen Curtis, has published six new case notes: A v Medical Practitioner [2009] PrivCmrA 1: The complainant wrote twice to their medical practitioner requesting a copy of all of the personal information that the practitioner held...
COAG communique 30 April 2009
Posted on May 02, 2009The Council of Australian Governments (COAG) meeting in Hobart on 30 April 2009 has released a communique outlining its agreements including: national disaster arrangements; jobs and training; energy efficiency; and regulation reform. COAG endorsed a series of reforms, recommended by...
Bell Group v Westpac orders
Posted on April 30, 2009In The Bell Group Ltd (in liq) v Westpac Banking Corporation [No 9] [2008] WASC 239 (discussed here) the Western Australian Supreme Court decided that the banks were successful in their defences against claims of fraud and knowingly assisting a...
Income Tax Consolidation Regime: Exposure draft legislation
Posted on April 28, 2009The Assistant Treasurer and Minister for Competition Policy and Consumer Affairs, the Hon Chris Bowen MP, has released exposure draft legislation to improve the income tax consolidation regime and associated explanatory material. The exposure draft legislation implements announced changes to...
ACCC v Pratt criminal charges dropped
Posted on April 28, 2009The perjury charges against Richard Pratt for providing false or misleading evidence in the course of ACCC's investigation into Visy's cartel conduct in the corrugated fibreboard packaging industry were discontinued on 27 April. The Federal Court judge had ruled that...
APRA consults on the use of reserves in superannuation funds
Posted on April 28, 2009The Australian Prudential Regulation Authority (APRA) has released draft guidance on the management of reserves by APRA-regulated superannuation trustees. A discussion paper and draft Prudential Practice Guide 235 Use of reserves in superannuation funds (SPG 235) have been provided for...
Superannuation review
Posted on April 28, 2009Senator Nick Sherry, Minister for Superannuation and Corporate Law and a coalition of peak superannuation industry bodies have released a Communiqué of Principles on the Australian superannuation system, including a resolution that the current operational features of the system be...
Draft National Consumer Credit Reform package released
Posted on April 27, 2009Senator Nick Sherry, Minister for Superannuation and Corporate Law, has released the draft National Consumer Credit Reform package for comment by Friday 22 May 2009. The package consists of drafts of the following: National Consumer Credit Protection Bill 2009 (the...
Draft AML/CTF Rules relating to the sale of shares for charitable purposes
Posted on April 23, 2009Austrac has released for consultation draft AML/CTF Rules relating to the sale of shares for charitable purposes. These draft AML/CTF Rules exempt from the customer identification provisions of the AML/CTF Act, those persons who provide an item 33 designated service...
Queensland Government responds to review of government boards
Posted on April 22, 2009The Queensland Government has responded to the recommendations in the Brokering Balance Report by agreeing to the abolition of 103 government bodies. The underlying principle set out in the Report is that the establishment of a separate government body should...
ASIC v James Hardie decision: company, directors and officers were misleading
Posted on April 22, 2009In Australian Securities and Investments Commission v Macdonald (No 11) [2009] NSWSC 287 the New South Wales Supreme Court has decided in favour of ASIC's civil claim that a number of statements in the Draft ASX Announcement by James Hardie...
Ice TV wins High Court appeal
Posted on April 22, 2009In IceTV Pty Limited v Nine Network Australia Pty Limited [2009] HCA 14, the High Court has decided (6-0) that IceTV's use of some of Nine Network's time and title information obtained from aggregated program guides did not infringe Nine's...
Consumer credit reform update
Posted on April 21, 2009The Minister for Superannuation and Corporate Law, Senator the Hon Nick Sherry has announced that the legislation for consumer credit reform will be passed by September with licensing to commence by 1 January 2010. Draft bills are now expected by...
International treaty database
Posted on April 21, 2009Australia's laws are increasingly reflecting its obligations under international treaties. The FLARE Index to Treaties which was launched in March 2009 is a fully searchable database indexing and listing over 1,500 of the most significant multilateral treaties concluded from 1856...
Lobbyists Registers
Posted on April 20, 2009Lobbyists Registers contain information about lobbyists who make representations to Government on behalf of their clients including: the business registration details and trading names of each lobbyist including, where the business is not a publicly listed company, the names of...
Standing Committee of Attorneys-General meeting decisions April 2009
Posted on April 18, 2009The Standing Committee of Attorneys-General (SCAG) meeting outcomes of its April 2009 meeting include the following: Electronic Transactions Acts Ministers have agreed that amendments to the uniform Electronic Transactions Acts that could implement the UN Convention on Electronic Communications in...
Management of companies and provision of credit by organised criminal groups
Posted on April 18, 2009Senator Nick Sherry, Minister for Superannuation and Corporate Law, has announced details of an agreement between the Commonwealth and States and Territories at the Ministerial Council for Corporations relating to concerns over the use and management of companies by organised...
Audit of company director liability laws
Posted on April 17, 2009Senator Nick Sherry, Minister for Superannuation and Corporate Law, has announced that the Commonwealth will conduct an audit of its laws that impact on the issue of company director liability and will do so against the principles developed by the...
ASIC announces term deposit review
Posted on April 16, 2009ASIC has announced that it will be conducting a marketing and disclosure review of the term deposit market. It expects to complete the review by the end of May 2009. ASIC has also released an investor and consumer guide on...
BrisConnections: let the members decide
Posted on April 14, 2009The general principle that is applied in disputes as to whether a resolution should be allowed to proceed to a meeting of members is, if the matter is within the power of members to decide, let them decide. Courts are...
The public debate on executive pay
Posted on April 13, 2009SBS's Insight program is always well researched and last week's program Are executive salaries justifiable? is worth reviewing. You can either see the video or read the transcript online. Representatives of the major stakeholders participated including Corporate Law Minister Nick...
Access to company books and insurance details
Posted on April 12, 2009One of the key factors in shareholders deciding to sue directors of companies (including by way of a derivative action under s237 of the Corporations Act), is whether they can find evidence of unlawful conduct and whether the directors hold...
Contribution of the Not for Profit Sector
Posted on April 09, 2009The Productivity Commission has released an Issues Paper seeking submissions on the contributions of the not for profit sector. The study's focus is on: improving the measurement of the sector's contributions removing obstacles to maximising its contributions to society...
Regulation of Director and Executive Remuneration in Australia
Posted on April 07, 2009The Productivity Commission has published an Issues Paper relating to its public inquiry into the regulatory framework around remuneration of directors and executives of companies regulated under the Corporations Act. Initial submissions are due by 29 May 2009
Tax bonus is constitutional
Posted on April 06, 2009The High Court has announced its decision in Pape's challenge to the validity of the Tax Bonus for Working Australians Act (No 2) 2009 (Cth): The Bonus Act is a valid law of the Commonwealth. The High Court will give...
Retail Investor Protection on Partly Paid Securities
Posted on April 06, 2009Senator Nick Sherry, Minister for Superannuation and Corporate Law, has allowed changes to the Australian Securities Exchange (ASX) market rules to boost retail investor disclosure and protection in relation to "partly paid securities". Partly paid securities, or instalment receipts, are...
Banks agree to A Common Approach for Assisting Borrowers Facing Financial Hardship
Posted on April 06, 2009The Treasurer has announced a new agreement between the Australian Government and the four major banks, to assist borrowers who are experiencing financial difficulty as a result of the global recession. The Principles place obligations on the four major banks...
Stage 2 modernised awards announced
Posted on April 06, 2009The Australian Industrial Relations Commission has announced 27 modern awards as part of Stage 2 of its award modernisation process. The Awards to apply from 1 January 2010 are: Aged Care Award 2010 Banking, Finance and Insurance Award 2010 Building....
G20 London Summit Outcomes
Posted on April 05, 2009Leaders of the world?s largest economies have agreed a $1.1 trillion package of measures to restore growth and jobs and rebuild confidence and trust in the financial system:London Summit Outcomes and Final Communique
Managing conflicts in super fund trustees
Posted on April 05, 2009The Australian Prudential Regulation Authority (APRA) has released for public consultation draft guidance on managing conflicts of interest for APRA-supervised superannuation trustees (known as Registrable Superannuation Entity (RSE licensees).Download discussion paper and draft Prudential Practice Guide 521 Conflicts of interest...
Superannuation fund performance disclosure
Posted on April 01, 2009The Corporations Regulations 2001 have been amended by the Corporations Amendment Regulations 2009 (No. 3) to require superannuation funds (other than self managed superannuation funds) to disclose five and ten year average returns in periodic member statements...
When is a disclosure document required for fundraising?
Posted on March 31, 2009Australian Securities and Investments Commission v Cycclone Magnetic Engines Inc & Ors [2009] QSC 58 demonstrates the complexity in regulating fundraising by "fringe" operators. ASIC successfully obtained an injunction against misleading conduct by a company raising funds for its magnetic...
Attorney-General's update on AML/CTF
Posted on March 31, 2009In his speech on 1 April, the Attorney-General indicated the Goverrnment is balancing the need for the second tranche of reforms (to extend the existing AML/CTF Act to services provided by a range of businesses and professions, including accountants, lawyers,...
COAG?s Business Regulation and Competition Working Group Annual Report Card
Posted on March 30, 2009COAG?s Business Regulation and Competition Working Group has published its 2009 Annual Report Card on progress towards a "seamless national economy". The Report covers: Occupational Health and Safety Environmental Assessment and Approvals Processes Payroll Tax Harmonisation Licences of Tradespeople Health...
Reserve Bank March 2009 Financial Stability Review
Posted on March 26, 2009The Reserve Bank has published its latest Financial Stability Review here.
The links between bonuses, ethics and compliance
Posted on March 26, 2009What would you do if you were employed on particular terms ($1 salary plus a performance bonus) and later asked to forego your pay? Would it make any difference if you worked in a company that had to be bailed...
Draft Freedom of Information Amendment (Reform) Bill 2009
Posted on March 24, 2009The Government has released a draft Information Commissioner Bill 2009 and the draft Freedom of Information Amendment (Reform) Bill 2009 for public consultation. The Office of the Information Commissioner is proposed to be established and operational by January 2010...
Unit Pricing ? Draft Industry Code
Posted on March 22, 2009The Government has released a draft code to implement a nationally?consistent, mandatory unit pricing scheme. The draft code applies to online retailers, and store-based retailers with a floor space of more than 1000 square metres devoted to the display of...
Productivity Commission inquiry into anti-dumping and countervailing system
Posted on March 22, 2009The Government has announced that the Productivity Commission will undertake an inquiry into Australia's anti-dumping and countervailing system. Australia's anti-dumping and countervailing system allows Australian industries that have been materially injured to make a claim against foreign businesses that they...
Fair Work Bill passed: small business employer definition changed
Posted on March 21, 2009After extensive negotiation with Senate Independents (and despite the Opposition's vote against it), the Fair Work Bill 2008 was passed on 20 March 2009. (see the history of the Bill and the Senate amendments here). The amended Bill defines a...
Draft Financial Ombudsman Service terms of reference released
Posted on March 21, 2009The Financial Ombudsman Service Limited has approved the release of a Proposed Terms of Reference. Submissions about the Proposed Terms of Reference close on Monday 20 April 2009.
ACCC Report on anti-competitive practices by health funds
Posted on March 19, 2009The Australian Competition and Consumer Commission has published its report to the Senate on ?any anti-competitive practices by health insurers or providers, which reduce the extent of health cover for consumers and increase their out-of-pocket medical and other expenses?...
Senate report on Personal Property Securities Bill
Posted on March 19, 2009The Senate Standing Committee on Legal and Constitutional Affairs has released its report on the exposure draft of the Personal Property Securities Bill. The Committee has made 11 recommendations including that the commencement date for the scheme be extended by...
Review of executive termination payments
Posted on March 17, 2009Treasurer, Wayne Swan, and Minister for Superannuation and Corporate Law, Senator Nick Sherry, have announced reforms aimed at curbing excessive "golden handshakes" - or termination payments - paid to company executives. The Government will amend the Corporations Act to significantly...
Advance notice: mutuals mergers forum
Posted on March 17, 2009Langes will be holding a forum on mutuals mergers in Sydney on Thursday 30 April. If you want to know about what is involved in a merger (and traps to avoid) then keep the day free so you can come....
Risk life insurance and the AML/CTF Act
Posted on March 15, 2009Austrac has issued an information sheet about the regulation of risk life insurance under the AML/CTF Act. Risk life insurance products that do not have a prescribed minimum surrender value are not captured under the AML/CTF Act.
Increase in disputes received by Financial Ombudsman Service
Posted on March 15, 2009The Financial Ombudsman Service reports that it has seen a significant increase in the number of new disputes received. It experienced an average 45.4% rise across all divisions in the six months to 31 December 2008, compared with the same...
The impact of international banking regulation on Australia
Posted on March 12, 2009This article by me was first published in Retail Banking Review.Although Australian financial institutions are not experiencing the solvency crisis of major U.S. and European financial institutions it is important to monitor developments in the USA and Europe...
Draft Confidentiality of Taxpayer Information Bill
Posted on March 12, 2009The Assistant Treasurer and Minister for Competition Policy and Consumer Affairs, the Hon Chris Bowen MP, has released for public consultation an exposure draft Confidentiality of Taxpayer Information Bill and explanatory materials. The exposure draft Bill proposes to consolidate, into...
Guide on self-managed super
Posted on March 12, 2009The Australian Taxation Office and ASIC have published a guide on self-managed superannuation.
Tax treatment of emissions units
Posted on March 12, 2009The technical tax details of the treatment of emissions units are set out in the draft Carbon Pollution Reduction Scheme (Consequential Amendments) Bill of 2009. Submissions close on 14 April.
Review of statutory implied conditions and warranties
Posted on March 11, 2009In a speech today Consumer Affairs Minister Chris Bowen MP announced a review of statutory implied conditions and warranties by the Commonwealth Consumer Affairs Advisory Council (CCAAC). The review is to examine the adequacy of existing laws on conditions and...
Draft AML/CTF Rules to exempt certain reporting entities from threshold
Posted on March 11, 2009Austrac has issued draft AML/CTF Rules to exempt certain reporting entities from threshold transaction reporting. These draft AML/CTF Rules exempt ADIs and Exchange Settlement Account holders from providing threshold transaction reports, if those threshold transactions take place wholly between authorised...
Release of exposure draft legislation for the Carbon Pollution Reduction Scheme
Posted on March 10, 2009The Government has released exposure draft legislation and explanatory materials for the Carbon Pollution Reduction Scheme. The exposure draft legislation sets out what is required of participants in the Scheme and the mechanics of the Scheme to ensure Australia?s emissions...
Austrac issues PLI 9 - Customer identification requirements under the AML/CTF Act
Posted on March 10, 2009PLI 9 - Customer identification requirements under the AML/CTF Act deals with: The nature and content of risk-based ?applicable customer identification procedures? under Part 7 of the AML/CTF Act and the Anti-Money Laundering and Counter-Terrorism Financing Rules Instrument 2007 (No...
Award modernisation
Posted on March 09, 2009Under a formal Australian Government request, the Australian Industrial Relations Commission (AIRC) is required to complete award modernisation in priority industries and occupations by 31 December 2008 and complete the whole of the award modernisation process by 31 December 2009...
Regulation of charities and not-for-profit organisations
Posted on March 09, 2009The Senate Standing Committee on Economics report on charities and not-for-profit organisations has heightened interest in the Third Sector (or Community Social Welfare Organisations, for want of a better name). QUT's Australian Centre for Philanthropy and Nonprofit Studies has developed...
ASIC participates in ANZ Bank and Opes Prime settlement
Posted on March 08, 2009Mediation initiated by ASIC between it, the ANZ Banking Group Ltd, Merrill Lynch (International) Australia Pty Ltd and the liquidator of Opes Prime Stockbroking Limited has resulted in a proposed settlement offer: based on estimates provided by the liquidator, the...
Do better governed firms outperform poorer governed firms?
Posted on March 07, 2009Treasury has released a paper which examines the relationship between a company?s adoption of the Australian Securities Exchange (ASX) Corporate Governance Council?s Principles of Good Corporate Governance and Best Practice Recommendations (ASX Corporate Governance Principles) and its financial performance in...
Draft AML/CTF Rules on document certification
Posted on March 07, 2009Austrac has released draft AML/CTF Rules amending the definitions of 'certified copy' and 'certifiedextract' in Chapter 1 of the Rules by increasing the list of persons who can certify documents and extracts of documents as being true copies of original...
Decision making, risk management and insolvency
Posted on March 07, 2009The global financial crisis has focussed attention on the way businesses make decisions and their "risk appetite". Your attitude to risk can influence how you perceive the facts. Are you an optimist ("half glass full") defying the facts and taking...
Impact of the Global Financial Crisis on the Corporations and Financial Services Regime
Posted on March 03, 2009Small Business and General Business Tax Break details
Posted on February 25, 2009The Treasurer has released an exposure draft of the Tax Laws Amendment (Small Business and General Business Tax Break) Bill 2009 and associated explanatory material. The Small Business and General Business Tax Break was announced on 3 February 2009 as...
APRA Chair gives update to Senate
Posted on February 25, 2009In his opening statement to the Senate Standing Committee on Economics on 25 February 2009 APRA Chair John Laker gave a brief update on the global financial crisis and its implications for the work and priorities of APRA. In a...
Guidance for non-profit organisations on Counter-Terrorism Financing
Posted on February 25, 2009The Australian Government has released a draft guidance document to assist non-profit organisations (NPOs') protect themselves from the risk of terrorism financing. This guidance document is intended to: build awareness of the risk of being misused for the purpose of...
ASIC issues consultation paper on equity capital raising refinements
Posted on February 24, 2009ASIC has issued a consultation paper which considers refinement of measures to facilitate equity capital raising including modification of existing exemptions from disclosure requirements. In the consultation paper, ASIC is proposing to allow: listed managed investment schemes to make placements...
AXA loses appeal against Direct Share decision on cost of access to member register
Posted on February 23, 2009In AXA Asia Pacific Holdings Limited v Direct Share Purchasing Corporation Pty Ltd [2009] FCAFC 15 AXA lost its Full Court of the Federal Court appeal against the decision of Judge Finkelstein (here) that a reasonable fee for Direct Share's...
Pension Drawdown Relief for Retirees
Posted on February 18, 2009The Treasurer has announced relief from minimum account-based pension draw down requirements. Currently, it is a requirement that minimum payments be made from a superannuation account-based pension at least annually. Minimum payments are determined by age and the value of...
New Australian Consumer Law: national unfair contracts law
Posted on February 16, 2009Assistant Treasurer Chris Bowen has announced that the national consumer protection law which was agreed between the Commonwealth and the states last year (see here), will be fast tracked with a bill to be introduced by June 2009 and commencement...
Amendments to the Foreign Acquisitions and Takeovers Act
Posted on February 12, 2009The Treasurer has announced the Commonwealth Government will seek to amend the Foreign Acquisitions and Takeovers Act 1975 (the Act). The Act provides the basis for the Treasurer to examine proposed foreign investments in Australian businesses and assets to ensure...
Exposure draft Tax Agent Services Bill
Posted on February 12, 2009The Assistant Treasurer and Minister for Competition Policy and Consumer Affairs, the Hon Chris Bowen MP, has released for public consultation an exposure draft Tax Agent Services (Transitional Provisions and Consequential Amendments) Bill 2009 and associated explanatory material...
Disqualification in Australia of banned foreign directors
Posted on February 12, 2009The Corporations Amendment (No 1) Bill 2008 has been passed by Parliament. The amendments will ensure that individuals who are disqualified from managing companies in foreign countries will also be disqualified in Australia. The legislation will, in the first instance,...
Special circumstances exemption under AML/CTF Act for fire or flood victims
Posted on February 11, 2009Austrac has given guidance to superannuation fund trustees who may not be able to comply with section 32 of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (the identification requirement) when making payment as a result of Victorian bushfires or...
CAMAC issues paper on Aspects of Market Integrity
Posted on February 10, 2009The Corporations and Markets Advisory Committee (CAMAC) has released an issues paper Aspects of market integrity. The paper responds to a request from the Minister for Superannuation and Corporate Law, the Hon Senator Nick Sherry, for CAMAC to provide advice...
US regulators and Madoff
Posted on February 10, 2009The US Securities and Exchange Commission is being quizzed over its role in Madoff's Ponzi scheme. Here's an excerpt from the hearing by the House Financial Services Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises ASIC may be in...
ASIC's views on insurance regulation
Posted on February 07, 2009In a recent speech Jeremy Cooper, Deputy Chairman of ASIC,set out ASIC's views on regulation of the insurance industry. He explained that the insurance industry,as a mature industry, warrants a light touch regulatory approach. But he identified the following areas...
US imposes restrictions on bank executive compensation
Posted on February 05, 2009The US Treasury has announced a new set of guidelines on executive pay for financial institutions that are receiving government assistance. The measures are "designed to ensure that the compensation of top executives in the financial community is closely aligned...
Codes of conduct in retail banking
Posted on February 05, 2009I recently wrote this article for Retail Banking Review. The Code of Banking Practice contains provisions intended to set out the high ethical and service standards that customers can expect when dealing with a bank that subscribes to that code....
COAG Communique: 5 February 2009
Posted on February 05, 2009The Prime Minister, Premiers, Chief Ministers and the President of the Australian Local Government Association, together with Commonwealth, State and Territory Treasurers, held a special meeting of the Council of Australian Governments (COAG) in Canberra on 5 February 2009 to...
Small Business and General Business Tax Break
Posted on February 03, 2009The Government has announced the Small Business and General Business Tax Break: Small businesses (with a turnover of $2 million a year or less) will be able to claim a bonus deduction of 30 per cent for eligible assets costing...
The use of technology in the management of discovery and the conduct of litigation
Posted on February 03, 2009The Federal Court of Australia has announced the much-anticipated revised Practice Note No.17 regarding the use of technology in the management of discovery of electronic records and the conduct of litigation ("e-discovery"). The Practice Note applies to any proceeding in...
Insurance regulation update
Posted on February 03, 2009The Minister for Superannuation & Corporate Law has given a speech outlining proposed changes in financial services regulation and key issues and reforms in the insurance field. He discussed the Financial Claims Scheme and the Insurance Contracts Act review.
CAMAC report on Sons of Gwalia and insolvent companies
Posted on January 28, 2009The Corporations and Markets Advisory Committee (CAMAC) has released its report Claims by shareholders against insolvent companies: implications of the Sons of Gwalia decision. The report responds to a request for advice by the Government on the effect of the...
Retailer fined over misleading jewellery catalogue
Posted on January 28, 2009In Australian Competition and Consumer Commission v Ascot Four Pty Ltd (No 2) [2009] FCA 28 the Federal Court of Australia fined Ascot Four Pty Ltd, the former owner of the jewellery retailer Zamel?s, $380,000 after it was found guilty...
Australia Day Blawg Review
Posted on January 26, 2009The end of the Australia Day weekend marks the end of school and summer holidays for most people. To mark the transition, read Blawg Review #196 hosted this week by Queensland law lecturer Peter Black.
AML forms and reports
Posted on January 25, 2009Austrac has issued new forms and reporting guidance in the following areas: International funds transfer instructions Suspicious matters Threshold transactions
Fixing the banks
Posted on January 25, 2009The Group of Thirty (chaired by Obama Economic Adviser Paul Volcker) has released Financial Reform: A Framework for Financial Stability. The report addresses flaws in the global financial system. Its 18 specific recommendations include: the activities of government-insured deposit-taking institutions...
30 years of change in legal practice
Posted on January 22, 2009This month marks 30 years since I was admitted as a Solicitor of the Supreme Court of Queensland. What's changed in the practice of law in 30 years? I was trained to concentrate on client service and client service remains...
Temporary investment allowance
Posted on January 21, 2009The Treasurer has announced a 10 per cent temporary investment allowance - in the form of an additional tax deduction. The allowance will be applicable to most new tangible depreciating assets - which includes most items of plant and equipment...
ATO draft superannuation rulings
Posted on January 21, 2009The ATO has issued 5 draft rulings clarifying terms applicable to self-managed super funds (SMSF's). SMSFR 2008/D1 deals with the classification of an entitlement of a fund to an unpaid trust distribution. SMSFR 2008/D2 deals with contributions of assets to...
Covered short selling ban extended
Posted on January 21, 2009ASIC has announced that the ban on covered short selling of financial securities will remain in place until Friday, 6 March 2009. Covered short selling of non-financial securities is unaffected and will still be permitted. ASIC requires strict compliance with...
New margin lending regulations
Posted on January 17, 2009Senator Nick Sherry, Minister for Superannuation and Corporate Law, has announced that the Government's Financial Services Working Group will this week begin consultations with industry on a new, national margin lending regulatory regime, which will include new short form, plain...
Treasury discussion paper on CGT rollover for super funds merger
Posted on January 15, 2009Treasury has issued a discussion paper on implementation of the Government's proposal to provide an optional capital gains tax (CGT) roll over for capital losses arising from CGT events happening under a complying superannuation fund?s merger with an APRA regulated...
ACMA fines Optus for spam text messages
Posted on January 14, 2009The Australian Communications and Media Authority (ACMA) has issued two infringement notices to the value of $110,000 to Optus Networks Pty Ltd for allegedly sending electronic messages without accurate sender identification, in contravention of the Spam Act 2003...
Outsourcing risks: Satyam
Posted on January 13, 2009Leading Indian IT outsource provider Satyam Computer Services has become involved in an accounting fraud scandal allegedly involving more than US$1billion that could affect its services to Australian customers. Business Week.Satyam has more than 50,000 employees...
Lloyds TSB Bank settles US sanctions breach investigation
Posted on January 12, 2009Lloyds TSB Bank has announced that it has reached a settlement for US$350 million with both the United States Department of Justice and the New York County District Attorney?s Office in relation to financial transfers that violated US sanctions. The....
National unit pricing regime
Posted on January 10, 2009The Minister for Competition Policy and Consumer Affairs, the Hon. Chris Bowen MP,has announced the details of the Government's approach to the implementation of a nationally-consistent, mandatory unit pricing regime under the Trade Practices Amendment (Clarity in Pricing) Act 2008...
Meaning of 'Understanding' in the Trade Practices Act 1974
Posted on January 08, 2009Treasury has released a discussion paper entitled the 'Meaning of 'Understanding' in the Trade Practices Act 1974'. This discussion paper seeks submissions from interested parties regarding the adequacy of the current interpretation of the term 'understanding' in section 45 of...
How often do data breaches occur?
Posted on January 08, 2009Australia does not yet have mandatory data breach notification laws (see last year's ALRC proposals) but in the USA where many states do have such laws, the Identity Theft Resource Center reports that in 2008 there were 656 breaches from...
Short selling ban update
Posted on January 07, 2009ASIC has updated the position relating to short selling: 1. In relation to covered short selling of financial stocks, the position remains as set out in ASIC?s advisory AD08-210 of 13 November 2008, that the ban will remain in place...
APRA prudential framework for the supervision of general insurance groups
Posted on January 06, 2009This is an article I recently wrote for Complinet. The HIH Royal Commission recommended that Australia develop a framework for the effective supervision of corporate groups that include general insurers. APRA?s response began with a discussion paper, Prudential supervision of...
Risk management by directors
Posted on January 01, 2009One of the important lessons of 2008 is that we can't predict everything and that there will always be surprises (even if in hindsight the cause of the surprise appears to be obvious). The essence of risk management lies in...
Directors' duties in refinancing: Bell Group decision
Posted on December 29, 2008The Bell Group Ltd (in liq) v Westpac Banking Corporation [No 9] [2008] WASC 239 dealt with a claim started in 1995 by the liquidators of Bell Group against 21 banks challenging the way in which securities were given and...
New regime proposed for Third Sector: charities and not-for-profit organisations
Posted on December 27, 2008The Senate Standing Committee on Economics has released a report on charities and not-for-profit organisations. The Committee's recommendations include: that the Government establish a unit within the Department of Prime Minister and Cabinet specifically to manage issues arising for Not-For-Profit...
Australian Government financial sanctions against Zimbabwe
Posted on December 27, 2008The Australian Government has updated its financial sanctions against certain persons associated with the Mugabe regime in Zimbabwe under the Banking (Foreign Exchange) Regulations 1959. The Australian Government has directed the Reserve Bank to remove 4 persons and add 75...
Insurance: Financial Claims Scheme
Posted on December 27, 2008The Insurance Amendment Regulations 2008 deal with the practical operation of the Financial Claims Scheme (FCS) relating to claims by policyholders against insolvent insurers. The Regulations specify which insurance policies would not be protected by the scheme, the time period...
Madoff: the biggest ever Ponzi scheme?
Posted on December 22, 2008The global financial crisis has affected a wide range of investors. It has also exposed major frauds such as Bernie Madoff's alleged US$50 billion Ponzi scheme (Story: NPR). Whilst the concept of a Ponzi scheme is relatively straightforward ( use...
Australian Government responses to the Clarke Inquiry and other counter-terrorism reviews
Posted on December 22, 2008The Attorney General has announced the Government???s response to reviews of national security legislation as well to the public report of the Inquiry by the Hon. John Clarke QC into the case of Dr Mohamed Haneef . The Government will...
Revised prudential standard on audit requirements for ADIs
Posted on December 22, 2008The Australian Prudential Regulation Authority (APRA) has released a revised prudential standard on audit requirements for authorised deposit-taking institutions (ADIs). The aim of revised Prudential Standard APS 310 Audit and Related Matters is to ensure that APRA is provided with...
Finding delisted and deregistered companies
Posted on December 22, 2008deListed provides updates and information on failed companies including those in external administration and companies suspended from ASX, NZX, NSX and BSX. It also has all historical name changes and delistings for these exchanges and carries administrators/liquidators declarations for Australian...
AML/CTF compliance reports 2008
Posted on December 21, 2008Entities which provided designated services between 1 January 2008 and 31 December 2008 must submit compliance reports to AUSTRAC between 1 January 2009 and 31 March 2009. Whilst it is AUSTRAC policy that AML/CTF compliance reports be submitted electronically via...
Review of the Code of Banking Practice
Posted on December 16, 2008The Independent Reviewer has delivered her Final Report on the Review of the Code of Banking Practice. The Code sets out the banking industry?s key commitments and obligations to customers The Reviewer makes a range of recommendations including in the...
AUSTRAC Typologies and Case Studies Report 2008
Posted on December 16, 2008The AUSTRAC Typologies and Case Studies Report 2008 gives examples of money laundering typologies, methodologies and risk indicators. The investigations highlighted within the report were initiated or supported by the financial transaction reports submitted to AUSTRAC by Australian entities...
Designing projects: achieving results rather than completing tasks
Posted on December 15, 2008This is the time of the year when we're either trying to resuscitate projects that have stalled or are designing new projects. In the course of a busy day it can be easy to focus on individual tasks rather than...
Executive remuneration structures for APRA?regulated institutions
Posted on December 10, 2008In October 2008, the Prime Minister announced that the Government would be examining with the Australian Prudential Regulation Authority (APRA) what domestic policy actions on executive remuneration would be appropriate to avoid excessive risk?taking in Australia?s financial institutions...
Privacy case notes 22-24 of 2008
Posted on December 10, 2008The Australian Privacy Commissioner, Karen Curtis, has published three new case notes: V v Commonwealth Agency [2008] PrivCmrA 22 - the complainant alleged a government agency had improperly collected and disclosed personal information in interviewing the complainant about the complainant's...
Tax review consultation papers released
Posted on December 09, 2008The Australia?s Future Tax System Review Panel has released a consultation paper on the tax review. It includes discussion on: Personal tax and transfers The retirement income system Taxing business and investment Not-for-profit organisations Complexity ? cost, risk and transparency...
Taxation of Financial Arrangements (TOFA) Stages 3 and 4
Posted on December 09, 2008The Assistant Treasurer Chris Bowen MP has introduced the Tax Laws Amendment (Taxation of Financial Arrangements) Bill 2008 into Parliament. TOFA Stages 3 and 4 provides a comprehensive framework for taxing financial arrangements. The measures contain rules that cover tax...
Disqualification of foreign banned company directors
Posted on December 09, 2008Senator Nick Sherry, Minister for Superannuation and Corporate Law, has introduced into the Parliament the Corporations Amendment (No 1) Bill 2008 which will ensure that individuals who are disqualified from managing companies by a court in foreign countries will also...
Financial Transaction Reports Amendment (Transitional Arrangements) Act 2008
Posted on December 09, 2008The Financial Transaction Reports Amendment (Transitional Arrangements) Act 2008 has been assented to. The Act completes the transition to the AML/CTF regime for reporting entities from 11 March 2010. Updated consolidated Act: Financial Transaction Reports Act 1988
Draft Disability (Access to Premises ? Buildings) Standards
Posted on December 09, 2008The Government has tabled draft Disability (Access to Premises ? Buildings) Standards in the House of Representatives for referral to the Committee on Legal and Constitutional Affairs. The Committee will conduct consultations on the draft Premises Standards and report to...
COAG continues regulatory reform
Posted on November 30, 2008At its meeting on 29 November 2008 COAG agreed, amongst other things, to continue regulatory reform towards a "seamless national economy". According to the COAG Communique, focus areas were: planning and zoning policies and processes from a competition perspective as...
Rules for developing business regulation
Posted on November 29, 2008The Administrative Review Council has published a report, ???Administrative accountability in business areas subject to complex regulation???. The report focuses on accountability and transparency in the development of business rules by government. A key suggested principle is that "There should...
Austrac draft rules for providers of traveller accommodation: safety deposit boxes and currency exchange transactions
Posted on November 29, 2008Austrac has released 2 sets of draft AML/CTF Rules relating to providers of traveller accommodation for public consultation: Safe deposit boxesThese draft AML/CTF Rules exempt providers of traveller accommodation, who provide in-room safes and safe deposit facilities to registered guests,from...
List of government guaranteed large deposits and wholesale funding
Posted on November 29, 2008The Australian Government Guarantee Scheme for Large Deposits and Wholesale Funding (the Guarantee Scheme) commenced on 28 November 2008. The list of government guaranteeed liabilities (by financial institution and product type) is here.
Fair Work Bill
Posted on November 26, 2008The Fair Work Bill 2008 has been introduced into Parliament.
Large Deposit Guarantee Bill
Posted on November 26, 2008The Guarantee Scheme for Large Deposits and Wholesale Funding Appropriation Bill 2008 has been introduced into Parliament with the goal of taking effect by 28 November 2008. The Bill appropriates funds to enable claims to be paid under the Guarantee....
Prescribed Private Funds Discussion Paper
Posted on November 26, 2008The Treasurer announced in the 2008 Budget that the Government will legislate guidelines to improve the integrity of Prescribed Private Funds (PPFs) and to provide the trustees of PPFs with greater certainty as to their philanthropic obligations. A discussion paper...
Austrac Regulatory Guide updated
Posted on November 23, 2008Austrac has released a new Chapter 9 on reporting obligations for its Regulatory Guide. All reporting entities under the AML/CTF Act will have the new reporting requirements from 12 December 2008. From this date, providers of financial, bullion, gambling or...
The Australian Government Guarantee Scheme for Large Deposits and Wholesale Funding
Posted on November 22, 2008Scheme legal documentation and application procedures for the guarantee of large deposits and wholesale funding are now available on the guarantee scheme website ADI's who wish to offer a government guarantee for deposits over $1million from 28 November 2008 must...
ACCC Merger guidelines 2008
Posted on November 22, 2008The Australian Competition and Consumer Commission (ACCC) has issued its revised Merger Guidelines 2008 The guidelines outline the general principles underpinning the ACCC's approach to merger analysis under section 50 of the Trade Practices Act 1974.
Board leadership in practice
Posted on November 18, 2008Leading up to the corporate reporting and AGM season I spoke to many Chairs and directors about their concerns. Sometimes it was a disclosure issue or a question involving voting or election procedures, but often it involved how to ensure...
Workplace relations agreements transition
Posted on November 15, 2008The Hon Julia Gillard MP, Minister for Education. Minister for Employment and Workplace Relation, has set out more details of the transition of old workplace relations agreements and the introduction of the Fair Work Bill in this speech: Before I...
Short Selling Bill introduced
Posted on November 15, 2008The Corporations Amendment (Short Selling) Bill 2008 has been introduced into Parliament to better regulate the use of short selling in the Australian financial market. The Bill prohibits "naked" short selling, where the seller has not bought the shares they...
Superannuation clearing house discussion paper
Posted on November 13, 2008Senator the Nick Sherry, Minister for Superannuation and Corporate Law, has announced the release of a two-part discussion paper on the implementation of the Government's superannuation clearing house measure and possible initiatives to reduce the number of lost super accounts...
ASIC rules on covered short selling of non-financial stocks from 19 November 2008
Posted on November 12, 2008ASIC has announced the rules to apply if it lifts the ban on covered short selling of non-financial stocks from 19 November 2008. If the ban is partially lifted on 19 November as expected, there will be an increased focus...
Draft AML/CTF rules released for comment
Posted on November 12, 2008Austrac has released the following draft AML/CTF Rules for comment: amending the definition of 'designated business group' to allow law and accounting practices subject to certain conditions, to form designated business groups. relating to purchases and sales of bullion valued...
Regulation of credit rating agencies and research houses
Posted on November 12, 2008Senator Nick Sherry, Minister for Superannuation and Corporate Law, has announced significant reforms to the regulation of credit rating agencies (CRAs) and research houses, following the publication of joint Treasury - ASIC report of a review conducted at the request...
Code of Practice for sexual harassment in the workplace
Posted on November 11, 2008Federal Sex Discrimination Commissioner, Elizabeth Broderick,has released Effectively preventing and responding to sexual harassment: A Code of Practice for employers. The Code contains a practical guide to the law, as well as a set of tips for employers on developing...
CSA Guide to Procedures at AGM's
Posted on November 11, 2008Chartered Secretaries Australia has published a useful Guide to Procedures at AGMs (free of charge).This guide sets out good practice for public company AGM's particularly in areas where the Corporations Act, ASX Listing Rules or the company Constitution is silent.
Clarity in Pricing Bill passed
Posted on November 11, 2008TheTrade Practices Amendment (Clarity in Pricing) Bill 2008 has been passed by Parliament. The amendments to the Trade Practices Act 1974 require that where a business makes a price representation to a consumer and that amount is less than what...
Tax System Review
Posted on November 11, 2008Dr Ken Henry, Chair of Australia's Future Tax System Review Panel and Secretary to the Treasury has given an interesting address to the National Press Club, Canberra on the tax system review. He managed to cover wombats, a Queensland country...
ASIC's enforcement direction
Posted on November 11, 2008This article by me was first published in Complinet. In its 2007-2008 Annual Report the Australian Securities and Investments Commission (ASIC) has reported extensively on its enforcement activities. Enforcement is an important measure of ASIC exercising its functions and meeting...
Re-registration of ASIC approved financial services training courses
Posted on November 11, 2008Providers of training for financial advisers and authorised assessors have until 1 December 2008 to re-register their training courses and assessment services on the ASIC Training Register. The ASIC Training Register is the register of approved training courses and assessment...
Draft mobile premium services code
Posted on November 10, 2008The Communications Alliance has released a draft Mobile Premium Services Industry Code and Guideline for comment by 12 December 2008. Mobile premium services are optional services such as ringtone downloads, competitions and news updates, which often cost more than a...
SCAG November 2008 meeting outcomes
Posted on November 08, 2008The Standing Committee of Attorneys General (SCAG) met in Brisbane on 7 November to discuss progress on harmonising laws between the states. The outcomes included: the agreement of the States and Territories to create a National Anti?Discrimination Information Gateway...
National Review into Model Occupational Health and Safety (OHS) Laws
Posted on November 08, 2008The first report of an advisory panel on a national review into model Occupational Health and Safety (OHS) Laws has been published. The recommendations relating to duty of care include that: "The model Act should contain a set of principles...
Commonwealth Mid-Year Economic And Fiscal Outlook
Posted on November 05, 2008The Commonwealth's Mid-Year Economic And Fiscal Outlook 2008-2009 outlines the impact of the global financial crisis on Australia and the impact on the government's policy decisions.
Workplace sexual harassment survey results
Posted on November 03, 2008The Australian Human Rights Commission has released the results of the 2008 Sexual Harassment National Telephone Survey. Key findings include: Sexual harassment continues to be a problem in our workplaces, despite some improvement since 2003 There is a lack of...
ASIC report on relief applications: April-July 2008
Posted on November 01, 2008ASIC has released a report outlining recent decisions on applications for relief from the corporate finance, financial services and managed investment provisions of the Corporations Act (the Act) between 1 April and 31 July 2008. The relief applications included employee...
New Zealand wholesale funding guarantee facility
Posted on November 01, 2008The New Zealand Minister of Finance has announced that the Crown will offer a wholesale funding guarantee facility to investment-grade financial institutions in New Zealand. The facility will operate on an opt-in basis, by institution and by instrument...
ASIC sets conditions for hardship withdrawals from mortgage trusts
Posted on November 01, 2008ASIC has announced the conditions on which it will consider applications from mortgage funds which have frozen redemptions to permit early withdrawal for members where there is hardship. This relief will generally only be given on a case-by-case basis for...
Bank account switching
Posted on November 01, 2008From 1 November, a new Account Switching Package comes into effect with banks, credit unions and building societies now offering full listing and switching services to customers. To assist customers who want to switch, financial institutions are now obliged to...
Draft AML Rules for record-keeping obligations
Posted on November 01, 2008Austrac has released draft AML/CTF Rules for record-keeping obligations under s107 of the AML/CTFAct for consultation until 14 November 2008. Section 107 of the AML/CTF Act states that if reporting entities make a record of information relating to the provision...
ATO discloses privacy breach
Posted on October 29, 2008The ATO has disclosed that the details of 3,122 trustees of self managed super funds were on an ATO CD that has gone missing. The Tax Office has written to 3,122 trustees of self managed super funds offering them a...
National Health Professions Registration
Posted on October 29, 2008The Health Practitioner Regulation (Administrative Arrangements) National Law Bill 2008 has been introduced into Queensland Parliament. It will create a national registration and accreditation scheme for doctors, nurses and allied health professionals...
Financial services update
Posted on October 29, 2008Minister for Superannuation and Corporate Law Senator the Hon Nick Sherry's speech at a Financial Services Regulation conference summarises recent events including: Australia's response to the global financial crisis; the government guarantee of bank deposits and bank funding insurance policyholder...
Inspector-General of Taxation's report on Tax Office's management of major, complex issues
Posted on October 28, 2008The Assistant Treasurer, Chris Bowen MP, has released the Inspector-General of Taxation's report Improvements to tax administration arising from the Inspector-General's case study reviews of the Tax Office's management of major, complex issues.The report summarises systemic issues arising from three...
Treasury provides further details on the wholesale funding and deposit guarantees
Posted on October 28, 2008Treasury has updated its guidance on the Deposit and Wholesale Funding Guarantees Design and Operational Parameters and provided a list of Eligible Accounts and Institutions.The changes to the operational details include the following clarification: For deposits of or under $1...
ACCC sues Qantas and British Airways for price fixing
Posted on October 28, 2008On 28 October 2008 the Australian Competition and Consumer Commission (ACCC) instituted separate proceedings in the Federal Court, Sydney, against Qantas Airways Limited and British Airways PLC seeking penalties for alleged price fixing between 2002 and early 2006...
Review of the Tax Arrangements applying to Managed Investment Trusts
Posted on October 28, 2008The Board of Taxation has published a Discussion Paper on the Review of the Tax Arrangements applying to Managed Investment Trusts.
Privacy Act Annual Report 2007-08
Posted on October 28, 2008The Privacy Commissioner has released the Privacy Act Annual Report 2007-08
Draft Trade Practices Cartel Bill released
Posted on October 27, 2008The Government has released draft legislation providing criminal sanctions for serious cartel conduct. The Government intends to introduce the Trade Practices Amendment (Cartel Conduct and Other Measures) Bill 2008 into Parliament before the end of the year...
Financial Claims Scheme legislation and deposit guarantee final details
Posted on October 25, 2008The Financial Claims Scheme package has been passed and assented to: Financial System Legislation Amendment (Financial Claims Scheme and Other Measures) Act 2008 Financial Claims Scheme (ADIs) Levy Act 2008 Financial Claims Scheme (General Insurers) Levy Act 2008 The final...
Deposit guarantee changes announced
Posted on October 24, 2008The deposit guarantee scheme for deposits in banks, building societies and credit unions and other ADI's announced by the Government on 12 October has been changed. The Treasurer announced on 24 October that the Government has decided that a threshold...
ASIC extends ban on covered short selling
Posted on October 21, 2008ASIC is extending the ban on covered short selling for non-financial securities for a further 28 days until 18 November 2008.(See original announcement here ).ASIC expects to lift the ban from opening of trading the next day. The ban on...
Deposit guarantee:unintended consequences
Posted on October 21, 2008The discussion on unintended consequences of the deposit guarantee and possible refinements to the guarantee has been building. On Tuesday's 7.30 Report Treasurer Wayne Swan responded as follows: "WAYNE SWAN: Well Kerry there have been concerns expressed by industry and...
The role of rumour and the media in public confidence in financial institutions
Posted on October 20, 2008I'm in Darwin for the Australian Mutuals conference until Thursday so posts will be "light" but this article was mentioned by CommSec economist Craig James yesterday and is worth reading: Bringing Down Bear Stearns. It raises the question whether investigative...
Personal services income update
Posted on October 19, 2008Many consultants and contractors operate through a company, partnership or trust. If the majority (more than 50%) of your income is for the skills, knowledge, expertise or efforts of the person who performed the services, this income will be classified...
Gershon review of the Australian Government's use of information and communication technology (ICT)
Posted on October 16, 2008The Government has released Sir Peter Gershon?s report on his independent review of the Australian Government's use of information and communication technology (ICT). The report analyses a wide range of issues affecting the Government?s use and management of ICT, and...
Banking (Foreign Exchange) Regulations 1959: sanctions aganst Iran
Posted on October 16, 2008The Reserve Bank has published a list of several Iranian entities and persons against whom the Australian Government has ordered financial sanctions. Any transactions involving the transfer of funds or payments to, by the order of, or on behalf of...
Austrac 07-08 Annual Report
Posted on October 15, 2008The 2007-08 AUSTRAC Annual Report has been tabled in Parliament. The Report focusses on Austrac's 2 key roles as Australia?s anti-money laundering and counter-terrorism financing regulator and as a specialist financial intelligence unit.
Consumer Credit Code amended
Posted on October 15, 2008Amendments were passed by the Queensland Parliament on 7 October to implement recommendations from the National Competition Policy Review of the Consumer Credit Code (the Code). These amendments are expected to commence next year. The amendments have been brought about...
National consumer credit regulation
Posted on October 14, 2008Treasury has issued details on the consultation process and timetable for the transfer of responsibility for the national regulation of consumer credit to the Commonwealth and associated reforms.
Guarantee of wholesale funding and deposits
Posted on October 14, 2008Treasury has issued updated additional details on the guarantee of wholesale funding and deposits.
Wilkie acquitted: FAI prosecutions wrap-up.
Posted on October 13, 2008Former Director of FAI General Insurance Company Limited, Mr Daniel Wilkie, has been found not guilty by a jury in the Supreme Court of New South Wales on three criminal charges arising from an Australian Securities and Investments Commission (ASIC)....
ASIC sues KPMG over Westpoint audit
Posted on October 13, 2008ASIC has commenced action in the Supreme Court of Victoria against accountancy firm KPMG over its auditing of companies in the Westpoint Group which collapsed in early 2006 with losses in excess of $300 million. The action is being taken...
Australian government guarantees Australian bank, building society and credit union deposits
Posted on October 12, 2008The Prime Minister has announced the Australian Government will guarantee all deposits of Australian banks, building societies and credit unions and Australian subsidiaries of foreign-owned banks. The guarantee applies to all types of deposits, regardless of the type of account...
New Zealand deposit guarantee scheme
Posted on October 12, 2008New Zealand Finance Minister Michael Cullen has announced that the New Zealand government is to introduce an opt-in retail deposit guarantee scheme for 2 years. The scheme will cover all retail deposits of participating New Zealand-registered banks and retail deposits...
Financial Claims Scheme update
Posted on October 12, 2008Legislation for the Financial Claims Scheme (incorporating the government guarantee on financial institution deposits announced on 12 October 2008) will be introduced soon. Apart from the deposit guarantee it will also deal with a general insurance failure, such as HIH:...
International financial system changes
Posted on October 09, 2008It's hard to decide whether the changes occurring internationally are volatile or chaotic. They are certainly dramatic and extraordinary. Here is an analysis by CCH (pdf) of the USA Emergency Economic Stabilization Act of 2008 passed on 3 October 2008...
CSA Good Governance Guide on share trading policies
Posted on October 07, 2008Chartered Secretaries Australia has published a new Good Governance Guide: Issues to consider when developing or reviewing the policy on trading in company securities. It addresses the issues for listed companies in relation to trading in company securities including the...
Water market rules
Posted on October 05, 2008The Water Act has been amended to deal with the ACCC's role in a water market, particularly in the Murray-Darling Basin. This page has useful links to the key laws and agreements.
Australia Benchmark Financial Services Report
Posted on October 05, 2008Austrade has published its 2008 Financial Services Benchmark Report: Australia ??? A Global Financial Services Centre, which report on developments and trends in Australia???s economy and financial markets.
ASIC consults on changes to EFT Code of Conduct
Posted on October 04, 2008ASIC has released Consultation Paper 90, Review of the EFT Code of Conduct: ASIC Proposals proposing changes to the Electronic Funds Transfer Code of Conduct (EFT Code). The Consultation Paper proposes: making it easier for subscribers to deliver required information...
COAG makes progress on consumer credit reform
Posted on October 02, 2008The Council of Australian Governments (COAG) meeting on 2 October 2008 discussed furthering its reform agenda including consumer protection, health services, climate change and indigenous Australian issues (see communique). Financial Regulation and Consumer Protection COAG agreed to an implementation plan...
Garnaut Climate Change Review Final Report
Posted on September 30, 2008The Garnaut Climate Change Review has released its Final Report. The report provides recommendations on the policy options for Australia to most effectively respond to climate change. The report recommends that the emissions trading system should be established at the...
ASIC relief for group insurance
Posted on September 30, 2008ASIC has issued Class Order (CO 08/1) Group purchasing bodies to provide conditional exemptions for group purchasing bodies that arrange cover under insurance or facilities for managing financial risk (excluding certain foreign insurance) from the Australian financial services (AFS) licensing...
Productivity Commission draft report on paid maternity, paternity and parental leave
Posted on September 30, 2008The Productivity Commission has released a draft inquiry report on paid maternity, paternity and parental leave. The Commission proposes the introduction of a taxpayer-funded paid parental leave scheme that would: ? provide paid postnatal leave for a total of 18...
Taxation of Financial Arrangements (TOFA) Stages 3 and 4
Posted on September 30, 2008The Assistant Treasurer Chris Bowen MP has announced the release of an exposure draft bill and related explanatory material dealing with Taxation of Financial Arrangements (TOFA) Stages 3 and 4. The TOFA Stages 3 and 4 reforms will modernise the...
Daylight saving starts this weekend (in parts of Australia)
Posted on September 28, 2008Tasmania, Australian Capital Territory, New South Wales, South Australia and Victoria start daylight saving on 5 October 2008 and end on 5 April 2009. Western Australia starts on 26 October 2008 and ends on 29 March 2009. Queensland and the...
First home saver account FAQ's for individuals
Posted on September 28, 2008From 1 October 2008 financial institutions and other approved providers will be able to offer first home saver accounts. They encourage saving for a first home by taxing earnings on first home saver accounts at 15%. Here is an ATO...
Austrac issues Public Legal Interpretation on suspect transactions and suspicious matter reports
Posted on September 27, 2008Austrac Public Legal Interpretation 6 deals with suspect transactions and suspicious matter reports. The PLI sets out AUSTRAC?s views on the provisions of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) and the Financial Transaction Reports Act 1988...
Government to buy residential mortgage?backed securities
Posted on September 26, 2008The Treasurer has announced that the Australian Office of Financial Management (AOFM) will purchase Australian residential mortgage?backed securities (RMBS) as part of the Government's commitment to improve liquidity in Australia's mortgage markets and to re-invigorate the sector...
Clarity in Pricing Bill introduced
Posted on September 26, 2008The Commonwealth Government has introduced into Parliament the Trade Practices Amendment (Clarity in Pricing) Bill 2008. The Bill relates to the use of component pricing in representations by businesses to consumers. Component pricing is the practice of advertising prices as...
RBA 2008 Financial Stability Review
Posted on September 25, 2008The Reserve Bank's 2008 Financial Stability Review concludes that "Australia has benefited from having strong and profitable financial institutions with few problem assets on their balance sheets, and a sound regulatory regime. While the Australian financial system has not been...
Further ASIC clarification on short selling
Posted on September 24, 2008ASIC has announced that persons who have placed portfolio securities into a securities lending program provided by an established securities lending business and who wish to sell those securities (a sale) before they have completed a recall of those securities...
Financial services dispute resolution schemes review
Posted on September 24, 2008This article by me first appeared in Complinet. The Australian Securities and Investments Commission ( ASIC) has released Consultation Paper 102: Dispute Resolution ? update of RG 139 & RG 165 proposing improvements to the way financial services businesses operating...
Fourth ruling from ASIC on short selling
Posted on September 23, 2008ASIC has issued further clarification to market participants regarding the prohibition on short-selling first announced on Friday 19 September and Sunday 21 September and clarified on Monday 22 September. ASIC may further change its position depending on market conditions...
Short Selling Bill released for consultation
Posted on September 23, 2008Senator Nick Sherry, Minister for Superannuation and Corporate Law, has released a draft of the Corporations Amendment (Short Selling) Bill which will require the disclosure of covered short sale transactions on Australian financial markets. The draft Bill will have a...
AML/CTF Rules updated
Posted on September 22, 2008Austrac has announced that the official compilation of the Anti-Money Laundering and Counter-Terrorism Financing Rules here is not complete. It does not include recent changes made to Chapters 17, 18 and 19 of the AML/CTF Rules. These Rules specify certain...
Australian Government response to financial crisis
Posted on September 22, 2008The Treasurer's speech to Parliament today discussed the financial crisis, the US Government's response, the Australian response and the ban on short selling.
ASIC bans covered short selling
Posted on September 21, 2008As a result of actions by overseas regulators, ASIC has extended the disclosure requirements for covered short selling announced on 19 September into a ban. [Class Order 08/752] ASIC has made the following decisions to apply from the opening of...
Who is liable for company statements?
Posted on September 21, 2008At a time when the share market is volatile, it is important to understand who is liable for a company's ASX announcements. In Australian Securities and Investments Commission v Narain [2008] FCAFC 120 the Full Court of the Federal Court...
ASIC bans naked short selling
Posted on September 20, 2008ASIC has announced a package of interim measures relating to short selling following recent financial market turmoil. This package has 3 goals: first, from the opening of the market on Monday 22 September 2008, naked short sales on ASX???s approved...
AUSTRAC releases reporting implementation policy
Posted on September 20, 2008AUSTRAC has released a reporting implementation policy to assist reporting entities with new obligations under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act). From 12 December 2008, reporting entities will need to report suspicious matters and, if applicable,...
Saab green marketing was misleading
Posted on September 18, 2008In Australian Competition and Consumer Commission v GM Holden Ltd (ACN 006 893 232) [2008] FCA 1428, the Federal Court has declared that GM Holden Ltd made false and misleading claims in its "Grrrrrreen" campaign which promoted the environmentally friendly...
Austrac requires english translations
Posted on September 18, 2008Austrac has published a document outlining AUSTRAC's policy regarding the translation into English of any document required to be produced to AUSTRAC by regulated entities under the FTR Act and AML/CTF Act. AUSTRAC requires that such documentss will be available...
Workplace relations reform update: Fair Dismissal Code for Small Business
Posted on September 18, 2008In a major speech, Minister for Employment and Workplace Relations The Hon Julia Gillard MP has outlined important details of the government's workplace reform program including: the AIRC has published exposure drafts of a number of Modern Awards. Australia?s new...
Trade Practices Compliance in the private health insurance sector
Posted on September 15, 2008In a recent speech ACCC Commissioner, Mr John Martin discussed issues that are being raised with the ACCC in relation to private health insurance, and how those issues fit in to the wider health sector. In the health sector, complaints...
Indicators of insolvency and defences for directors: case study
Posted on September 14, 2008With companies continuing to report financial difficulty, it's worth looking at a case that analysed the meaning of insolvency in great practical detail for some guidance for directors. Although Hall & Ors v Poolman & Ors [2007] NSWSC 1330 is...
Implementation of Basel II in Australia
Posted on September 13, 2008APRA has published a useful article (pdf) discussing the background to the Basel II Framework for financial institutions and its implementation in Australia, including the adjustments APRA has made within Basel II to accommodate local conditions.
Goods unit pricing
Posted on September 13, 2008The Competition Policy & Consumer Affairs Minister, Chris Bowen MP, has released an issues paper calling for public comment on developing a national goods unit pricing regime. Unit pricing (or comparative pricing) is the display of the price of goods...
venturousaustralia: Review of the National Innovation System
Posted on September 09, 2008The Review of the National Innovation System has now been completed. The report of the Review, venturousaustralia, has 72 recommendations that focus on innovation in business, strengthening people and skills, excellence in national research, information and market design, and taxation.
ASIC review of financial services EDR schemes
Posted on September 09, 2008ASIC has released Consultation Paper 102: Dispute Resolution ??? update of RG 139 & RG 165 proposing improvements to the way financial services businesses resolve disputes with consumers, including harmonisation of the different schemes. Under s 912A of the Corporations...
ASIC review of financial services EDR schemes
Posted on September 08, 2008ASIC has released Consultation Paper 102: Dispute Resolution ? update of RG 139 & RG 165 proposing improvements to the way financial services businesses resolve disputes with consumers, including harmonisation of the different schemes. Under s 912A of the Corporations...
Announcement: Langes+ expands
Posted on September 08, 2008On 1 October 2008, Shannon Adams and Rob Surman from Adelaide will join Richard Farago and Richard Joice in Sydney and myself in Brisbane as partners at Langes. Langes+ will specialise in financial services and insurance law, with a strong...
Make sure you find out the bad news first: developing a compliance framework
Posted on September 06, 2008Some of the boards of major companies have been criticised recently for being unaware of the extent of significant problems within their organisation. Whilst boards cannot be expected to know the minutiae of daily operations, a culture whereby bad news...
Supplementary Draft Climate Change Report released
Posted on September 06, 2008The Garnaut Climate Change Review Supplementary Draft Report Targets and trajectories was released on 5 September 2008. The Final Report is due by 30 September 2008. Report author Professor Garnaut proposes a 10 per cent reduction in emissions (or 30...
What is a "flood" for insurance purposes?
Posted on September 04, 2008The ACCC has refused authorisation of a proposal by the Insurance Council of Australia for a common definition of 'inland flood'. Consumer groups argued that the ICA's definition would in fact increase consumer confusion about the meaning and nature of...
ASIC v James Hardie directors update
Posted on September 04, 2008ASIC has confirmed it is proceeding with a hearing of its civil action against seven former directors and three former company officers of the James Hardie Group in the NSW Supreme Court on 29 September. ASIC also said that no...
Removal of same-sex discrimination from Commonwealth laws
Posted on September 03, 2008Attorney-General Robert McClelland has introduced into Parliament the Same-Sex Relationships (Equal Treatment In Commonwealth Laws ? General Law Reform) Bill 2008, containing the second stage of legislation removing same-sex discrimination from a range of Commonwealth laws...
Privacy case notes 19-21 of 2008
Posted on September 02, 2008The Privacy Commissioner has published three new case notes. S v Health Service Provider [2008] PrivCmrA 19: a patient complained that sending their medical records and x-rays by general post was a failure to keep personal information secure. T v...
ASIC releases final guidance on disclosure by unlisted mortgage and property schemes
Posted on September 02, 2008ASIC has released final regulatory guides aimed at improving disclosure to retail investors by unlisted mortgage schemes and unlisted property schemes: Regulatory Guide 45, Mortgage schemes-improving disclosure for retails investors Regulatory Guide 46, Unlisted property schemes-improving disclosure for retails investors...
Statutory Oversight of the Australian Securities and Investments Commission
Posted on September 02, 2008The Parliamentary Joint Committee on Committee on Corporations and Financial Services has issued its 2008 report on oversight of ASIC. The main issues that are considered in this report include: the regulation of financial markets, particularly issues relating to short...
Personal Property Securities Reform Regulations discussion paper
Posted on September 01, 2008A discussion paper has been released on the regulations proposed to be made under the Personal Property Securities Bill. The Bill would establish a national framework for the regulation and registration of security interests in personal property. This national framework...
Discussion paper released on creeping acquisitions law
Posted on August 31, 2008The Assistant Treasurer and Minister for Competition Policy and Consumer Affairs, Chris Bowen MP, has released a discussion paper calling for public comment on the best way forward for a creeping acquisitions law. Creeping acquisitions refer to the cumulative effect...
What is a genuine redundancy for tax purposes?
Posted on August 30, 2008The ATO has issued a draft tax ruling defining what is a genuine redundancy. Genuine redundancy payments are tax-free up to a limit worked out under section 83-170 of the Income Tax Assessment Act 1997 . The ruling makes comments...
Parliamentary Progress of Tax Bills
Posted on August 30, 2008Treasury has issued an update on the progress of Tax Bills being considered by Parliament. There are 10 Bills. There are also 2 tariff proposals (which increase the excise rate applying to certain alcoholic beverages).
ASIC update on unlisted unrated debentures disclosure
Posted on August 30, 2008ASIC has released the updated Regulatory Guide 69: Debentures?improving disclosure for retail investors. ASIC has refined some aspects of the practical implementation in the regulatory guide by clarifying: the disclosure benchmarks for: equity capital, liquidity, loan portfolio, valuations, and lending...
Unit pricing good practice guide
Posted on August 28, 2008The Australian Prudential Regulation Authority (APRA) and ASIC have released an updated Unit pricing - guide to good practice for the life insurance, superannuation and funds management industries in response to continued unit pricing errors. The joint APRA/ASIC guide has...
Harmonisation of legal systems within Australia and between Australia and New Zealand
Posted on August 27, 2008The Commonwealth Government has responded to the House of Representatives Legal and Constitutional Affairs Committee report into the harmonisation of legal systems within Australia and between Australia and New Zealand by announcing that it will act on 22 of the...
Effect of a breach of the Franchising Code: is the agreement void?
Posted on August 27, 2008In an important test case for the franchise industry, Master Education Services Pty Limited v Ketchell [2008] HCA 38, the High Court of Australia has decided that a breach of clause 11(1) of the Franchising Code of Conduct did not...
Privacy, spam and electronic marketing
Posted on August 26, 2008The Australian Privacy Commissioner, Karen Curtis, has released an information sheet (pdf) to assist organisations who seek to engage in electronic marketing and explaining the different purposes of the Privacy Act and the Spam Act: "Under the Spam Act, an...
Dealing with privacy complaints
Posted on August 26, 2008The Australian Privacy Commissioner, Karen Curtis, has published an information sheet to assist organisations in investigating privacy complaints they receive. A step-by-step guide to internal investigations of privacy complaints by organisations (pdf) covers a number of steps to undertake when...
Successful appeal by a HIH director against disqualification by APRA
Posted on August 25, 2008The Administrative Appeals Tribunal has set aside the disqualification of Mr Charles Abbott by the Australian Prudential Regulation Authority (APRA): Abbott and Australian Prudential Regulation Authority [2008] AATA 641 Mr Abbott, who was an alternate director at HIH Limited (HIH)...
Mutual recognition arrangement between Australia and the United States
Posted on August 25, 2008A mutual recognition arrangement between Australia and the United States has been signed by Senator the Hon Nick Sherry, Minister for Superannuation and Corporate Law, Mr Tony D?Aloisio, Chairman of the Australian Securities and Investments Commission (ASIC), and Mr Christopher...
ANZ Bank securities lending review and risk management: Opes Prime aftermath
Posted on August 24, 2008The ANZ Bank has released the report of a Review Committee (pdf) which examined the Bank?s involvement in Securities Lending and its relationship with Broker clients including the Opes Prime group (Opes). (Business Day background) The Review Committee found :...
Responsible Lending Practices: Consumer Credit Cards
Posted on August 24, 2008The Ministerial Council on Consumer Affairs has released a consultation Regulatory Impact Statement on Responsible Lending Practices in Relation to Consumer Credit Cards (pdf). The Paper discusses options to assist consumer choice of card products and protect consumers from lending...
Privacy Commissioner issues voluntary data breach guide
Posted on August 24, 2008The Australian Privacy Commissioner, Karen Curtis, has released a "Guide to Handling Personal Information Security Breaches" (pdf). It is a voluntary guide for use by businesses, agencies and non-government organisations in preventing and, if necessary, responding to a data breach...
AML and finance brokers
Posted on August 21, 2008AUSTRAC has published an information sheet on its interpretation of the AML obligations of finance brokers. Comments include: Finance brokers who are holders of an Australian financial services (AFS) licence and only provide the designated service specified in item 54...
First Home Saver Accounts: training requirements for financial product advisers
Posted on August 21, 2008ASIC has released an update to RG 146 Licensing: Training of financial product advisers (pdf) to include new requirements for people who give advice about First Home Saver Accounts (FHSA's). ASIC has applied the Tier 2 level to courses and...
AML Rules update
Posted on August 21, 2008The Anti-Money Laundering and Counter-Terrorism Financing Rules have been updated to incorporate amendments made by Anti-Money Laundering and Counter-Terrorism Financing Rules Amendment Instrument 2008 (No. 4) in relation to reportable detail requirements and Anti Money Laundering and Counter Terrorism Financing...
Tax law changes design
Posted on August 21, 2008The Assistant Treasurer and Minister for Competition and Consumer Policy, Chris Bowen MP, has released the Tax Design Review Panel's report Better Tax Design and Implementation. The report makes 26 recommendations that propose significant changes to existing processes for tax...
Commonwealth courts portal
Posted on August 20, 2008The new Commonwealth courts portal features Federal Law Search which provides selected information on cases initiated in the Federal Court of Australia and in the federal law jurisdiction of the Federal Magistrates Court of Australia. The database is updated in...
Privacy law reform and the financial services industry
Posted on August 20, 2008This article by me first appeared in Complinet. The Australian Law Reform Commission has released its Report "For Your Information: Australian Privacy Law and Practice". The 3 volume report covers most areas of privacy law and makes 295 recommendations for...
Venture capital and private equity update
Posted on August 19, 2008In this speech The Hon Chris Bowen MP, Assistant Treasurer and Minister for Competition Policy and Consumer Affairs provides an update of the independent Cutler review of Australia?s innovation system, the early stage venture capital limited partnership program and the...
Queensland Government response to FOI review
Posted on August 19, 2008Premier Anna Bligh has released the Queensland Government?s response to Dr David Solomon?s report into Freedom of Information. Ms Bligh said the Government supported in full or part 139 of the 141 recommendations. The response to the recommendations will form...
National consumer law
Posted on August 16, 2008The Ministerial Council on Consumer Affairs (MCCA) has agreed that all Australian governments should adopt a new national consumer law, which will operate in all Australian jurisdictions and remains consistent. (Joint Communique) The Ministerial Council has agreed to propose to...
Public Legal Interpretation No. 5 of 2008 ? Access to and disclosure of ?AUSTRAC information?
Posted on August 16, 2008Public Legal Interpretation No. 5 of 2008 ? Access to and disclosure of ?AUSTRAC information? (pdf) sets out which Australian government agencies may access information collected by AUSTRAC and how that information may be dealt with, once accessed. It also...
Possible expansion of Do Not Call Register
Posted on August 14, 2008The Australian Communications and Media Authority (ACMA) has called for submissions on potential changes to the eligibility requirements for registration on the Do Not Call Register. At present, telephone numbers not used primarily for private or domestic purposes and all...
ASIC issues ASX assessment
Posted on August 14, 2008ASIC has released its assessment of each of the licensees of the Australian Securities Exchange (the ASX group). The report (pdf) covers the period 1 July 2006 to 30 March 2008. ASIC?s task is to assess if, over the period...
ACCC merger decisions
Posted on August 13, 2008Two recent ACCC decisions in respect of proposed mergers (Westpac and St.George and Medibank Private and Australian Health Management Group) give an insight in to the way the ACCC analyses markets and the associated competition issues. On 13 August 2008,...
AUSTRAC Regulatory Guide on new ongoing customer due diligence obligations
Posted on August 12, 2008The AUSTRAC Regulatory Guide has been updated with the addition of new chapter 8 which outlines new ongoing customer due diligence obligations that come into effect on 12 December 2008. From 12 December 2008, reporting entities must incorporate ongoing customer...
ASIC's approach to people overseas offering financial services in Australia
Posted on August 11, 2008ASIC has issued a new regulatory guide Doing financial services business in Australia (RG 121 pdf). The new guide explains to foreign financial services providers Australia?s financial services regime under the Corporations Act by: Setting out the statutory regime and...
Government response to Privacy Report
Posted on August 11, 2008Senator The Hon John Faulkner the Special Minister of State says the Government will respond to the Australian Law Reform Commission Privacy Report in stages. The first stage of the response will focus on the recommendations relating to the unified...
ALRC Report: Australian Privacy Law and Practice
Posted on August 10, 2008The Australian Law Reform Commission has released its Report "For Your Information: Australian Privacy Law and Practice". The 3 volume report covers most areas of privacy law and makes 295 recommendations for reform, including the recommendation that the Privacy Act...
AML and gaming machine venues
Posted on August 09, 2008AUSTRAC has considered the issue of who is the reporting entity that provides designated services for gaming machine venues. In its opinion the reporting entity is the the gaming machine operator licence/authority holder. Designated services in relation to gaming machine...
Government announces changes to Temporary Residents' Superannuation
Posted on August 09, 2008Senator the Hon Nick Sherry, Minister for Superannuation and Corporate Law, has announced the final form of the Government measure to require temporary residents? superannuation to be paid to the Commonwealth. Under the new approach temporary residents' superannuation will remain...
Review of the Legal Framework for the Administration of the Goods and Services Tax
Posted on August 07, 2008Although the Henry Review will not deal with the rate and base of the GST, the Board of Taxation is separately looking at the legal framework for the administration of the GST. The Board has released an issues paper. The...
ASIC's response to sub-prime and market turmoil
Posted on August 07, 2008In a speech Lessons learnt from market volatility and sub-prime (pdf). ASIC Commissioner Belinda Gibson listed her 4 lessons as follows: 1. Australia is very much part of the global economy and subject to its influences. 2. ASIC is a...
Surveyors entitled to be paid for copying of plans
Posted on August 06, 2008In Copyright Agency Limited v State of New South Wales [2008] HCA 35, the High Court decided that the State of New South Wales was not entitled to use surveyors? plans (by copying the survey plans and providing them to...
Notification requirements for Product Disclosure Statements
Posted on August 06, 2008From 1 July 2008, the notification requirements have changed for most PDSs issued by financial services licensees: see s1015D(2) of the Corporations Act 2001 (Corporations Act) and ASIC Information Sheet 94. From 1 July 2008, the responsible person for a...
Report of the ACCC inquiry into the competitiveness of retail prices for standard groceries
Posted on August 05, 2008The ACCC grocery inquiry report has been released. The ACCC did not identify anything that is fundamentally wrong with the grocery supply chain. Evidence provided to the inquiry did not support the proposition that retail prices have risen while farm-gate...
ALRC to review government secrecy laws
Posted on August 05, 2008The Australian Law Reform Commission (ALRC) has been requested by the Commonwealth Attorney-General, the Hon Robert McClelland MP, to review secrecy provisions in federal legislation. The Terms of Reference ask the ALRC to focus on: ? ?the importance of balancing...
Review of Australia's tax system
Posted on August 05, 2008The Government has published the Australia?s Future Tax System (AFTS) Discussion Paper (366 pages long and entitled "Architecture of Australia?s tax and transfer system") by Treasury Secretary Dr Ken Henry. The review will encompass Australian Government and state taxes, except...
AML risk management for small-to-medium sized businesses
Posted on August 04, 2008Austrac has published a risk assessment tool designed to help small-to-medium sized businesses meet the requirements of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006.
AML customer identification for currency exchange rules to be modified
Posted on August 04, 2008Austrac has issued draft AML/CTF Rules which amend paragraph 14.4 of Chapter 14 by raising the threshold from $500 to $1,000 regarding the designated service of exchanging one currency for another in the course of carrying on a currency exchange...
Regulatory constraints on innovation and access to public information
Posted on August 04, 2008Joshua Gans has written a humorous but relevant opinion piece on the restrictions on republishing information published on government web sites. His point is that there is much government data (he gives the examples of the location of public toilets....
Law of the Pacific Islands
Posted on August 03, 2008Australia is frequently referred to as part of Asia Pacfic but we have little knowledge of our Pacific Island neighbours. LLRX has published a guide to resources on the law of the Pacific Islands. What are the Pacific Islands? American...
Australian Direct Offshore Foreign Insurers Prudential Regulation Impact Statement
Posted on August 03, 2008This article by me first appeared in Complinet. The Australian Prudential Regulation Authority (APRA) has published a Regulation Impact Statement (RIS) discussing the modifications and clarifications to the prudential framework arising from the Financial Sector Legislation Amendment (Discretionary Mutual Funds...
APRA?s prudential requirements for First Home Saver Accounts
Posted on July 30, 2008APRA has released the final package relating to the authorisation and prudential oversight of providers of First Home Saver Accounts (FHSAs). The package comprises a prudential standard relating to superannuation licensees (known as RSE licensees), an authorisation form, a notification...
Debt collection practices
Posted on July 28, 2008The Australian Competition and Consumer Commission and the Australian Securities and Investments Commission will hold a phone-in day dedicated to debt collection concerns on Thursday 31 July 2008. Both agencies have been concerned about reports of unlawful practices adopted by...
Former Qantas executive jailed in US for price fixing
Posted on July 28, 2008In an example of what an Australian criminal penalty regime for price-fixing might look like, a former senior Qantas executive has been sentenced to six months in a US jail and given a $20,000 fine for his role in price-fixing...
The ATO and tax havens
Posted on July 28, 2008The Australian Taxation Office's submission to the US Senate Committee on Homeland Security and Governmental Affairs for a hearing into tax haven banks and US tax compliance contains the following points: OECD estimates that between $US 5-7 trillion are held...
Standing Committee of Attorneys?General (SCAG) July meeting
Posted on July 27, 2008The Standing Committee of Attorneys?General (SCAG) meeting on 25 July 2008 discussed over 20 matters of substantive legal reforms for all jurisdictions, focussing on issues of national importance. Key Decisions Significant progress was made in reform areas including work towards...
Draft tax legislation eligible investment business rules
Posted on July 23, 2008The Assistant Treasurer, Chris Bowen MP has announced that the Government has commenced consultation on draft legislation to reform Division 6C of the Income Tax Assessment Act 1936. Key changes include: clarifying the scope and meaning of investment in land...
Government issues National Rental Affordability Scheme Call For Applications
Posted on July 23, 2008Treasurer Wayne Swan and Minister for Housing Tanya Plibersek have issued the first Calls for Applications for incentives for the National Rental Affordability Scheme. Under the scheme, the Australian Government has combined with State and Territory Governments to offer incentives...
Gender equality report
Posted on July 22, 2008Elizabeth Broderick, Sex Discrimination Commissioner, has issued her Plan of Action Towards Gender Equality and the Listening Tour Community Report. Based on the Listening Tour findings, Commissioner Broderick will focus on the following areas: Women and leadership Balancing paid work...
AML share trading case studies
Posted on July 22, 2008Austrac has issued 2 "typologies" (case studies) relating to money-laundering through share trading: one involving a narcotics trader and the other involving derivatives.
Reference checks
Posted on July 21, 2008ASIC has published a useful reference checking directory of places to obtain information about people you are dealing with. Whilst it focusses on reference checks for the financial services industry some of the links (eg police) are of general use.
The Carbon Disclosure Project
Posted on July 21, 2008Carbon pollution reduction begins with with identifying and measuring carbon data and how to manage carbon. So the Carbon Disclosure Project by leading UK companies and IBM is of interest. The Project has released a Best Practice Guide (pdf) to...
ASIC publishes relief application decisions
Posted on July 20, 2008ASIC has released a report outlining its decisions on applications for relief from the corporate finance, financial services and managed investment provisions of the Corporations Act 2001 between 1 December 2007 and 31 March 2008. The report does not outline...
What are the Terms of Use for this site's news feeds?
Posted on July 20, 2008From time to time I receive requests to use this site's news feeds eg by adding the headlines or the full content to your own website. Here is my reply: Our news feed is a free service. But if you...
Draft PDS's for First Home Saver Accounts released
Posted on July 17, 2008Treasury has released 2 sample 4 page Product Disclosure Statements for First Home Saver Accounts : the first for ABC Bank ,an ADI (Bank, building society, credit union) with no fees, the second for ABC Investments a managed investment company...
Loan can be regulated consumer credit even with business declaration
Posted on July 17, 2008In Bahadori v Permanent Mortgages Pty Ltd [2008] NSWCA 150 the NSW Court of Appeal disregarded a borrower's declaration that a loan was wholly or predominantly for business or investment purposes because the credit contract was entered into before the...
Carbon pollution permits to be Australian financial products
Posted on July 16, 2008A carbon pollution permit (which will be referred to in legislation as an Australian emissions unit) would be an entitlement composed of various ?rights? contained in the carbon pollution reduction legislation. The main rights would be the right to surrender...
Queensland consumer credit interest cap commences on 31 July
Posted on July 15, 2008The Consumer Credit (Queensland) Special Provisions Regulation 2008 commences on 31 July 2008. Any Consumer Credit Code regulated loans made in Queensland (or made interstate to Queensland residents) after that date will be subject to a maximum annual percentage rate...
Government releases its Green Paper on the Carbon Pollution Reduction Scheme
Posted on July 15, 2008The Government has released its Green Paper on the Carbon Pollution Reduction Scheme containing options and preferred approaches on issues, such as which industry sectors will be covered by emissions permits and how emission caps will be set. It also...
Content Services Code for online and mobile phone content approved
Posted on July 15, 2008The Australian Communications and Media Authority has approved the Content Services Code, an industry code of practice for providers of online and mobile phone content developed by the Internet Industry Association. The code says that all content likely to be...
Consumer credit hardship relief
Posted on July 13, 2008Under section 66 of the Consumer Credit Code "a debtor who is unable reasonably, because of illness, unemployment or other reasonable cause, to meet the debtor's obligations under a credit contract and who reasonably expects to be able to discharge...
Financial assistance by a company to assist buying shares in the company
Posted on July 13, 2008Financial assistance by a company to assist buying shares in the company is allowed under the conditions set out in s260A(1) ie if it does not materially prejudice the company or its members or its ability to pay creditors or...
Background to transfer of consumer credit regulation to Commonwealth
Posted on July 13, 2008On 3 July the Commonwealth Government reached agreement with the States and Territories at the Council of Australian Governments (COAG) meeting in Sydney, to assume responsibility for regulation of all consumer credit. The decision is noted here. What is still...
ACCC appointments
Posted on July 13, 2008The Treasurer and Assistant Treasurer have announced a number of appointments to the Australian Competition and Consumer Commission (ACCC): The Rudd Government intends to recommend to the Governor?General the re?appointment of Mr Graeme Samuel AO as ACCC Chairperson for three...
Superannuation fund governance: trustee policies and practices
Posted on July 10, 2008APRA has released a working paper (pdf) containing data on its survey of superannuation fund trustee policies and practices. Despite minimal formal requirements by trustee boards, directors are generally well qualified although there is variation between sectors.
Change to sanctions against the (former) Federal Republic of Yugoslavia
Posted on July 10, 2008The Australian Government has directed the Reserve Bank to remove the measures which prohibit certain large financial transactions involving the Embassy of the Federal Republic of Yugoslavia, the Consulate-General of the Federal Republic of Yugoslavia, and Narodna Banka Jugoslavije (including...
Disclosure by unlisted mortgage and property schemes
Posted on July 08, 2008ASIC has released consultation papers and draft regulatory guides aimed at improving disclosure to retail investors by unlisted mortgage schemes and unlisted property schemes. Consultation Paper 99 Mortgage schemes ? improving disclosure for retail investors(including the draft regulatory guide) Consultation...
Disclosure of Management Expense Ratios to compare investments
Posted on July 08, 2008In a recent speech the Minister for Superannuation & Corporate Law discussed the government's priorities for superannuation reform. He discussed the use of Management Expense Ratios as a comparison point between different types of investments including First Home Saver Accounts:...
ASIC v Dawson: no access to Multiplex whistleblower documents
Posted on July 07, 2008In ASIC v P Dawson Nominees Pty Limited [2008] FCAFC 123 the Full Federal Court upheld ASIC?s objection to produce certain documents in relation to Multiplex Limited on the grounds of public interest immunity, namely that it would reveal the...
Garnaut Climate Change Review Draft Report
Posted on July 06, 2008The Garnaut Review has released its Draft Report . The Draft Report provides the Review?s suggestions on the design of the emissions trading scheme and the emissions permits process (Chapter 15). The draft Report will be discussed at public forums...
Credit Union and Mutual Law
Posted on July 06, 2008I have started a new blog on credit union and mutual law at http://www.djacobson.com/credit_union_and_mutual_l/ If you're interested, please have a look. You can subscribe to free updates of the blog as they occur by either adding the feed to your...
AML/CTF: what constitutes a reporting entity
Posted on July 06, 2008Austrac has issued Public Legal Interpretation No. 4 of 2008 ? What constitutes a reporting entity (pdf). The purpose of the Public Legal Interpretation is to set out AUSTRAC?s views on the provisions of the Anti-Money Laundering and Counter-Terrorism Financing...
Consumer credit regulation to be transferred to Commonwealth
Posted on July 03, 2008Senator the Hon Nick Sherry, Minister for Superannuation and Corporate Law, has announced that the Commonwealth Government reached agreement with the States and Territories at the Council of Australian Governments (COAG) meeting in Sydney on 3 July, to assume responsibility...
Standardised business reporting
Posted on July 03, 2008The Minister for Finance and Deregulation has announced that the Commonwealth and all of the states and territories have re-committed to supporting standardised business reporting (SBR). SBR is working to an aggressive timetable to ensure red tape is cut by...
COAG 3 July 2008 communique
Posted on July 03, 2008The 3rd meeting of COAG since the Rudd Government was elected reflects its commitment to drive reform. The communique identifies the outcomes including: Leaders signed an agreement to end the fragmented and inconsistent approach to the protection of workers? occupational...
Disclosure by ADI's of capital and risk information: APS 330
Posted on July 01, 2008From the current quarter (ending 30 September 2008) ADI's (banks, building societies, credit unions) will be required under APRA APS 330 (pdf) to disclose (depending on whether they are locally or foreign owned) a range of both quantitative (semi-annually) and...
What is a "charitable institution" for tax purposes?
Posted on July 01, 2008It is important for not-for-profit organisations to be recognised as a charitable institution by the Tax Office in order to obtain income tax relief. The ATO recently funded a test case to clarify when "political" and public advocacy activity would...
Keep your trade marks current: Gallo v Lion Nathan
Posted on July 01, 2008In E. & J. Gallo Winery v Lion Nathan Australia Pty Limited [2008] FCA 934 the Federal Court rejected a claim by Gallo that Lion Nathan's trade mark "Barefoot" in relation to a beer infringed its trade mark "Barefoot" in...
Copying other people's designs: a defendant wins
Posted on July 01, 2008In Inform Design and Construction Pty Ltd v Boutique Homes Melbourne Pty Ltd [2008] FCA 912 the Federal Court rejected a copyright claim in house plans (see previous note on Barrett v Metricon). Kim Weatherall analyses the case in detail...
Federal Discrimination Law Online
Posted on June 30, 2008The Human Rights and Equal Opportunities Commission has released FDL Online, the online version of Federal Discrimination Law (hard copy).
Announcement: Langes+
Posted on June 30, 2008On 1 July 2008 I will form a new legal practice together with the existing partners of Langes Lawyers of Sydney. The new national law practice will be called Langes+ and will specialise in law for credit unions and mutuals...
ASIC issues guide on directors? share trading
Posted on June 29, 2008ASIC has released a new guide, Regulatory Guide 193: Notification of directors? interests in securities ? listed companies (RG 193), which provides information on how directors of listed companies should comply with the disclosure requirements created by section 205G of...
ASIC supports FPA short statement of advice project
Posted on June 29, 2008ASIC has supported the Financial Planning Association (FPA)'s efforts in releasing a 10-page example of a statement of advice (pdf), written in plain English and tested with consumers. ASIC published a short example statement of advice in August 2005 (refer...
Mutuals Code of Practice
Posted on June 29, 2008Abacus has released the final draft Mutuals Code of Practice (pdf) together with copies of the submissions received by Abacus on its first draft and an explanatory document that summarises the major changes made to the original draft and the...
Schemes of arrangement review
Posted on June 26, 2008CAMAC has published a discussion paper on Members? schemes of arrangement (pdf) Schemes of arrangement are a commonly used mechanism under the Corporations Act for achieving structural change within a company or a corporate group. They can be tailored to...
National Greenhouse and Energy Reporting System Regulations
Posted on June 26, 2008From next Tuesday (1 July), businesses emitting large amounts of greenhouse gases will be required to monitor and measure the emissions ahead of reporting them to the Government by 31 October 2009. The National Greenhouse and Energy Reporting Regulations 2008...
Trade Practices Legislation Amendment Bill 2008
Posted on June 26, 2008The Commonwealth Government has introduced into the Parliament the Trade Practices Legislation Amendment Bill 2008 to implement changes previously announced. The amendments will: ensure that victims of predatory pricing will not need to prove that the predator has the ability...
Capital management by ADI's
Posted on June 26, 2008In this speech (pdf) Wayne Byres, Executive General Manager, Diversified Institutions Division Australian Prudential Regulation Authority, describes the regulatory issues affecting capital management for ADI's and its context.
ASIC insolvency report
Posted on June 26, 2008ASIC has released a report (pdf) covering information gathered from corporate insolvencies between 2004 and 2007. In profiling insolvent companies the report notes that 82% of insolvencies were companies with less than 20 employees. The top 3 causes of company...
ACCC chairman speaks on reforms
Posted on June 25, 2008In a speech to the National Press Club, Graeme Samuel has restated ACCC policy on cartel criminal prosecutions and competition reform.
Data security controls
Posted on June 25, 2008The UK Financial Services Authority (FSA) has fined stockbroker Merchant Securities Group Limited (Merchant Securities) for not adequately protecting its customers from the risk of identity fraud. Merchant Securities had inadequate procedures for verifying the identities of customers that contacted...
Access to share registers and predatory share offers
Posted on June 24, 2008David Tweed and his Direct Share Purchasing Corporation Pty Ltd have been involved in 2 decisions related to the practice of unsolicited direct offers to listed company shareholders to purchase shares below market price or over a long period or...
Report on shareholder engagement and participation
Posted on June 23, 2008The Parliamentary Joint Committee on Corporations and Financial Services has released its report on shareholder engagement and participation. The Committee made specific recommendations in two categories: the efficacy and integrity of different voting mechanisms; that is, the vote lodgement and...
APRA refinements to the general insurance prudential framework
Posted on June 23, 2008The Australian Prudential Regulation Authority (APRA) has released its final general insurance refinements package following extensive industry consultation over the past year. The finalised package includes a response paper, prudential standards and prudential practice guides...
NAB 2004 foreign currency case study
Posted on June 19, 2008The NAB board drama in 2004 following the discovery of forex losses must seem like ancient history: I was talking to a journalist recently about Societe Generale and mentioned the NAB events and he'd never heard of it! So in...
ACCC v Pratt
Posted on June 19, 2008The ACCC has issued criminal proceedings against Richard Pratt in the Federal Court. The matter is listed for first directions on 7 July. ABC News reports that the matter relates to the previous ACCC v Visy action in which Visy...
Review of photo and film copying (format-shifting) law
Posted on June 18, 2008A review of sections 47J and 110AA of the Copyright Act 1968 governing the private copying of films and photographs has recommended that no changes be made to current copyright law for the time-being. Sections 47J and 110AA of the...
Compliance culture at Sun: the pursuit of courage
Posted on June 17, 2008How do you know whether an organisation has a commitment to a compliance culture? You talk to the CEO and other executives, video-record it and publish it to all 30,000 staff and make it public. That is what Sun did...
National Employment Standards
Posted on June 16, 2008As a first step in modernising Australia's awards the Government has released the new National Employment Standards (NES) (pdf). The NES will come into effect on 1 January 2010. The NES will apply to all employees in the Federal system...
ACCC proposes revocation of eBay section 47 exclusive dealing immunity
Posted on June 15, 2008The Australian Competition and Consumer Commission has issued a draft notice proposing to revoke an exclusive dealing notification lodged by eBay International A.G. under section 47 Trade Practices Act. Under the notification, eBay proposes to mandate the use of PayPal...
Equine Influenza Inquiry and AQIS Compliance system
Posted on June 15, 2008The Equine Influenza Inquiry Report is a useful case study of the breakdown of an organisation's compliance and risk management framework. Page xxii describes AQIS as an "an organisation that lacked clear lines of communication between those responsible for formulating...
Cross border recognition by Australia: Facilitating access to overseas markets and financial services
Posted on June 15, 2008The Treasury and ASIC have issued a joint consultation paper, Cross border recognition: Facilitating access to overseas markets and financial services. The consultation paper invites comment on proposals for cross border recognition of financial markets, financial services and disclosure about...
Australia-New Zealand fund raising
Posted on June 14, 2008Australia and New Zealand have commenced an arrangement that will smooth the way for businesses to raise capital and for the public to invest with greater ease in both countries. The Agreement on the Mutual Recognition of Securities Offerings allows....
Societe Generale Inspection Report
Posted on June 14, 2008An English translation of the "Mission Green" Report (pdf) concerning the fraud committed by Jérôme KERVIEL (JK), Societe Generale trader on the Turbo warrants market within SG's equity derivatives division has been published. In summary the Report concludes that the...
CAMAC report: Long?tail liabilities: the treatment of unascertained future personal injury claims.
Posted on June 14, 2008CAMAC has published its report Long?tail liabilities: the treatment of unascertained future personal injury claims (pdf). The report puts forward proposals to improve the position of potential personal injury claimants whose claims against a company may not emerge for a...
Equine Influenza Inquiry
Posted on June 12, 2008Federal Minister for Agriculture, Fisheries and Forestry Tony Burke has released the report of the inquiry into the equine influenza outbreak in Australia in August 2007, conducted by the Hon. Ian Callinan AC, along with the Federal Government?s response...
Prudential requirements for First Home Saver Accounts
Posted on June 11, 2008The Australian Prudential Regulation Authority (APRA) has released a consultation package relating to the authorisation and prudential oversight of providers of First Home Saver Accounts (FHSAs). It is intended that FHSAs can be offered from 1 October 2008...
Inquiry into competition in the banking and non-banking sectors
Posted on June 08, 2008On 3 June 2008 the Treasurer the Honourable Wayne Swan MP, asked the House of Representatives Standing Committee on Economics to inquire into and report on Competition in the banking and non-banking sectors. The inquiry will pay particular attention to...
Who owns employee inventions?
Posted on June 05, 2008In University of Western Australia v Gray (No 20) [2008] FCA 498 the Federal Court of Australia rejected a claim by the University that ownership of an invention relating to cancer treatment belonged to it and not its employee who...
The Preliminary Conclusions of the Payments System Review
Posted on June 05, 2008In a speech on 4 June Philip Lowe Reserve Bank Assistant Governor (Financial System) outlined the Reserve Bank's approach to payment system reforms, particularly the EFTPOS system and improving choice for cardholders.
Coercive Information-gathering Powers of Government Agencies
Posted on June 04, 2008The Coercive Information-gathering Powers of Government Agencies report by the Administrative Review Council focuses on the powers granted to Government agencies for compelling the provision of information, the production of documents, and the answering of questions...
Australia responds to Financial Stability Forum
Posted on June 02, 2008The Treasurer has outlined Australia's response to the recommendations of the Financial Stability Forum Report on enhancing the resilience of financial markets and financial institutions. He has released a table which highlights action that Australian financial authorities, namely the Australian...
Financial Claims Scheme to protect depositors
Posted on June 02, 2008The Treasurer has announced the Government's intention to introduce legislation to establish a Financial Claims Scheme (FCS)to assist depositors and policyholders in the event that an authorised deposit?taking institution (ADI) or general insurer fails...
No change to banking "Four Pillars"
Posted on June 02, 2008The Treasurer has announced that the Rudd Government will maintain the existing Four Pillars policy for the banking sector. "Accordingly, whatever may be the outcome of the banking merger now under consideration [ie between Westpac and St.George] , the Rudd...
Green Paper on Financial Services and Credit Reform
Posted on June 02, 2008Senator the Hon Nick Sherry, Minister for Superannuation and Corporate Law, has released a Green Paper on Financial Services and Credit Reform. The Green Paper outlines options for the Commonwealth and states to transfer the remaining financial services regulation from...
Australia's financial services regulatory framework: Part 2
Posted on June 02, 2008This is Part 2 of an edited version of a recent article I wrote for Complinet. (see here for Part 1). This part reviews announced reforms.
Australia's financial services regulatory framework
Posted on June 02, 2008UK-based compliance resource Complinet is expanding its Asia-Pacific focus and asked me to write an analysis that would assist their foreign customers as well as Australian-based companies. What started out as a 1500 word article ended up as more than...
Simplifying superannuation advice
Posted on June 01, 2008The Financial Services Working Group, a joint initiative of Treasury, the Department of Finance and Deregulation and the Australian Securities and Investments Commission to look at key issues associated with financial product disclosure and advice, has released a consultation paper...
AML draft customer identification disclosure certificates
Posted on June 01, 2008Austrac has released draft AML/CTF Rules for disclosure certificates (pdf) relevant to applicable customer identification procedures The purpose of these draft AML/CTF Rules is to set out the required contents for disclosure certificates, relevant to Part B of a standard,...
Managed investment schemes top 20 member notification changed
Posted on June 01, 2008Corporations Amendment Regulations 2008 (No. 1) has been introduced to remove the requirement for managed investment schemes to notify the Australian Securities and Investments Commission (ASIC) of their top 20 interest holders each year, as part of the annual review...
Service Entity Arrangements
Posted on June 01, 2008The ATO has issued answers to Frequently Asked Questions on Service Entity Arrangements with special reference to medical practices. This follows the end of the review period after the release of the Tax Office guide titled Your service entity arrangements...
Privacy Commissioner publishes case notes 1 - 7 for 2008
Posted on May 29, 2008The Privacy Commissioner has released the first case notes for 2008. In A v Private School [2008] PrivCmrA 1 the OFPC found that a private school was entitled to refuse access to certain documents held by it relating to an...
Code of Banking Practice Review
Posted on May 29, 2008The Independent Reviewer has published an Issues Paper(pdf) which outlines draft recommendations on changes to the Code of Banking Practice. The recommendations include a recommendation that a general principle of responsible lending be included in the set of guiding principles...
Regulation of Direct Offshore Foreign Insurers ? Draft Regulations
Posted on May 29, 2008On 8 April 2008, the Assistant Treasurer announced the limited exemption arrangements that would apply under the Financial Sector Legislation Amendment (Discretionary Mutual Funds and Direct Offshore Foreign Insurers) Act 2007. The Assistant Treasurer also announced that data would be...
Mandatory Comparison Rates (MCR) Review
Posted on May 28, 2008The Ministerial Council for Consumer Affairs (MCCA) has agreed to reform the scheme of Mandatory Comparison Rates in the Consumer Credit Code. There was in principle agreement to repeal the requirement to provide consumers with ?schedules? of comparison rates, while...
Consumer Credit Code update
Posted on May 27, 2008The MCCA has agreed to refinements to the Consumer Credit Code. The amendments are intended to enhance the operation of the Consumer Credit Code by: Tightening current exemptions to the Code for short term credit and pawnbrokers ; Dealing with...
APRA Service Charter
Posted on May 27, 2008The Australian Prudential Regulation Authority (APRA) has released the APRA Service Charter (pdf) which explains how APRA carries out its role and what those who deal with the prudential regulator can expect.
First Home Saver Accounts Bills introduced
Posted on May 27, 2008The Treasurer has introduced the 3 Bills that contains the legislation for First Home Saver Accounts: The First Home Saver Accounts Bill 2008, which establishes the accounts, provides for the payment of the Government contribution and governs their operation and...
Same-Sex Discrimination and Commonwealth superannuation schemes
Posted on May 27, 2008Attorney-General Robert McClelland has introduced the Same-Sex Relationships (Equal Treatment in Commonwealth Laws ? Superannuation) Bill 2008 to remove same-sex discrimination from Acts governing Commonwealth superannuation schemes. The Bill makes amendments so that same-sex couples are no longer denied the...
Reserve Bank Review of settlement practices for Australian equities
Posted on May 26, 2008The Reserve Bank has undertaken an extensive review of settlement practices in the Australian equity market (pdf). This review sets out some possible modifications to current arrangements in order to avoid the significant delays in the settlement of Australian equities...
Do Not Call Register update
Posted on May 25, 2008ACMA has published details of registrations on the Do Not Call Register since its launch in May 2007. As at 30 April 2008, 2.27 million people had registered as not wishing to be called. ACMA is also inviting comment on...
Extension of time for licensing of foreign insurers
Posted on May 25, 2008The Australian Prudential Regulation Authority (APRA) has announced that the deadline for foreign insurers wishing to apply for a licence to write business in Australia after 1 July has been extended. The application deadline will now be 30 June instead...
National business names registration scheme
Posted on May 24, 2008Commonwealth, State and Territory Small Business Ministers have agreed in-principle to a national business names initiative which will establish a one-stop online shop for businesses to apply and pay for a national business name online through a single application covering...
Reform of Australia?s consumer product safety regulatory arrangements
Posted on May 24, 2008The Ministerial Council on Consumer Affairs (MCCA) has agreed to implement significant reform of Australia?s consumer product safety regulatory arrangements, for the benefit of consumers and businesses. (see the communique) The reforms will: remove legal uncertainty for businesses operating across...
Pocket Guide to the Australian Tax System
Posted on May 24, 2008Treasury has issued a pocket guide which provides notes on the breakdown between Commonwealth Government, State and Local Government tax revenue, the tax breakdown, major tax expenditures, history of tax instruments, income tax rates, GST and excise rates.
Australia and the sub-prime crisis
Posted on May 24, 2008John Edwards Chief Adviser, Financial markets, Macroeconomic Group, The Treasury has given a speech entitled "The Sub Prime Mortgage Meltdown Origins, Trajectories and Regional Implications - Australia's experience in the sub prime crisis" discussing how the sub-prime crisis affected Australia...
Treasury and ASIC to review regulation of credit rating agencies
Posted on May 22, 2008Senator the Hon Nick Sherry, Minister for Superannuation and Corporate Law, has announced that he has asked the Treasury with the Australian Securities and Investment Commission (ASIC), to review the regulation of credit rating agencies (CRAs) and research houses in...
ASIC acts on insurance advice by Hallmark and debt collection by GE Money
Posted on May 22, 2008ASIC has taken action over the insurance sales practices of GE Money's Hallmark companies and the debt collection practices of the GE Money consumer credit businesses. Hallmark insurance advice licence conditions imposed ASIC has imposed additional conditions on the Australian...
High Court's first decision on GST: GST payable on forfeited deposit
Posted on May 22, 2008In Commissioner of Taxation v Reliance Carpet Co Pty Limited [2008] HCA 22 the High Court decided that GST was payable on the deposit on a real estate sale which was forfeited to the seller when the seller terminated the...
Plain language in legislative drafting
Posted on May 22, 2008If you've ever wondered how our laws are drafted, the Office of Parliamentarty Counsel has issued several guides here. Note the use of "plain language", not "plain English". The USA has passed the Plain Language in Government Communications Act. See....
Securities markets, stockbrokers and ASIC
Posted on May 22, 2008In Securities markets, participants and ASIC (pdf) Tony D'Aloisio, Chairman Australian Securities & Investments Commission, defends ASIC's role as an effective regulator in the recent market turmoil: "While the issues which have arisen in the market have required ASIC taking...
National Health Workforce Registration and Accreditation Scheme
Posted on May 21, 2008The Council of Australian Governments (COAG) at its meeting of 26 March 2008 signed an Intergovernmental Agreement on the health workforce. This agreement will create a single national registration and accreditation system for nine health professions: medical practitioners; nurses and...
ASIC approves Financial Ombudsman Service
Posted on May 20, 2008ASIC has approved the new Financial Ombudsman Service (FOS). FOS will represent the merger of the three biggest complaints schemes operating in the financial services industry ? the Financial Industry Complaints Service (FICS), the Banking and Financial Ombudsman Service (BFSO)...
Review of Australia's Foreign Source Income Tax Rules
Posted on May 20, 2008The Board of Taxation has released the Board's issues papers on possible reforms to Australia's foreign source income anti-tax-deferral regimes (the controlled foreign company rules, the foreign investment fund rules, the transferor trust rules and the deemed present entitlement rules).
Review of APRA Prudential Decisions
Posted on May 17, 2008The Financial Sector Legislation Amendment (Review of Prudential Decisions) Act 2008 has been passed. The Act reforms review mechanisms for administrative decisions made by the Australian Prudential Regulation Authority (APRA). (The Bill is here) The Act includes measures to: Introduce...
Farm management deposit scheme
Posted on May 17, 2008The tax law relating to farm management deposits will be amended to remove a current minor inconsistency so that an eligible primary producer can also access the tax benefits of withdrawing their farm management deposit early when: the primary producer...
AML/CTF Act and Australian financial services licence holders
Posted on May 15, 2008AUSTRAC has released Public Legal Interpretation 2 of 2008 (pdf) which provides AUSTRAC?s legal view of the meaning and scope of item 54 of table 1 in section 6 of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006. In particular...
Government releases draft Personal Property Securities Bill
Posted on May 15, 2008Attorney-General Robert McClelland has released a draft of a Commonwealth Bill for personal property securities (PPS). It will replace over 70 pieces of Commonwealth, State and Territory law. PPS involves taking a security interest in all types of property other...
ASIC extends disclosure relief for rights issues
Posted on May 15, 2008ASIC has released Regulatory Guide 189: Disclosure relief for rights issues (RG 189). This regulatory guide explains the relief ASIC has given in Class Order (CO 08/35) Disclosure relief for rights issues. This includes relief: for accelerated offers to institutions;...
Review of Australia?s tax system
Posted on May 14, 2008Treasury has released the terms of reference for the review of Australia?s tax system confirmed by the Treasurer in his Budget speech. The review will encompass Australian Government and State taxes, except the GST, and interactions with the transfer system...
Register of Lobbyists finalised
Posted on May 14, 2008Lobbyists must register on the Commonwealth's Register of Lobbyists. A lobbyist is defined in clause 3 of the Lobbying Code of Conduct to mean a person, company or organisation who conducts lobbying activities on behalf of a client or whose...
Budget details for business
Posted on May 13, 2008The Budget details have been released. The thrust of the Budget is delivery of election announcements; the Budget reveals the conditions and costings. Worth noting from the Treasurer's speech: Supporting business Mr Speaker, the Government supports the aspirations of Australian...
Australian Government Budget 2008-09
Posted on May 11, 2008The 2008-09 Budget Papers will be available after 7:30 pm, Tuesday 13 May 2008 from www.budget.gov.au and from Department of Finance and Deregulation, Australian Taxation Office, australia.gov.au and Parliament of Australia. Treasurer Wayne Swan's interview with Laurie Oakes yesterday foreshadowed...
Nine wins Ice TV appeal
Posted on May 10, 2008In Nine Network Australia Pty Limited v IceTV Pty Limited [2008] FCAFC 71 the Federal Court of Australia Full Court allowed Nine's appeal against the original decision (discussed here) which permitted Ice to reproduce Nine's TV schedules in electronic form...
ASIC announces results of its strategic review
Posted on May 08, 2008The Australian Securities and Investments Commission (ASIC) has announced it has completed a strategic review. The key changes ASIC is making in order to be closer to the market and to take emerging trends into account more quickly are: additional...
APRA releases research on superannuation fund governance
Posted on May 08, 2008The Australian Prudential Regulation Authority (APRA) has released the results of its recent research on the governance practices of APRA-regulated superannuation funds (pdf). The research, based on a detailed survey of superannuation trustees, found that there was little difference between...
National Rental Affordability Scheme - technical paper released
Posted on May 07, 2008The National Rental Affordability Scheme is due to commence on 1 July 2008. The Government has released a Technical Discussion Paper on the planned operation of the National Rental Affordability Scheme (NRAS). The Technical Paper outlines the key features of...
Productivity Commission Report on Consumer Policy: consumer protection law and product safety
Posted on May 07, 2008The Minister for Competition Policy and Consumer Affairs, Chris Bowen MP, has released the Productivity Commission's final report of the Review of Australia's Consumer Policy Framework. The Productivity Commission's key recommendations include: a single national generic consumer law, based on...
Garnaut Review climate change update
Posted on May 06, 2008The Garnaut Review's draft report will be released by 30 June 2008, The interim report, issues papers and background and discussion papers can be found here.
AML and securities
Posted on May 05, 2008The Anti-Money Laundering and Counter-Terrorism Financing Rules Amendment Instrument 2008 (No. 2) (pdf) sets out exemptions for entities Issuing or selling a security or derivative provided one of the following conditions apply: the service is a disposal of a security...
Queensland consumer credit interest rate capped
Posted on May 04, 2008The Consumer Credit (Queensland) and Other Acts Amendment Bill was passed by the Queensland Parliament on 1 May 2008. Background
Competing rights on insolvency: share lending agreement
Posted on May 04, 2008in Beconwood Securities Pty Ltd v Australia and New Zealand Banking Group Limited [2008] FCA 594 the Federal Court had to decide on the competing rights of a lender (Beconwood) and a borrower (Green Frog, a part of the now...
Trade Practices Act amendments
Posted on May 01, 2008Treasury has released the Exposure Draft (Misuse of Market Power and related Provisions) to implement the changes announced by the Assistant Treasurer and Minister for Competition Policy and Consumer Affairs, the Hon Chris Bowen MP to section 46 of the...
April 2008 podcast
Posted on May 01, 2008In this month's podcast (click here to listen) I discuss 2 topics: Directors' duties in times of economic uncertainty (see also section 180(2) Corporations Act) Nikolich's case and the effect of HR policies The podcast goes for 9 mins, 23...
AML record-keeping rule
Posted on April 30, 2008New anti-money laundering and counter-terrorism financing rules have been made to update the record keeping obligations of reporting entities. The Anti-Money Laundering and Counter-Terrorism Financing Rules Amendment Instrument 2008 (No. 1) set out the conditions under which a reporting entity...
APRA's Ratings and Supervisory Systems
Posted on April 30, 2008APRA has released details of its systems for monitoring entities regulated by it: the Probability and Impact Rating System (PAIRS) and the Supervisory Oversight and Response System (SOARS) . The Probability and Impact Rating System (PAIRS)(pdf) is APRA s risk...
Regulation of Direct Offshore Foreign Insurers - Draft Regulations
Posted on April 29, 2008Treasury has released draft regulations setting out the details of the exemption provisions for licensing of foreign insurers announced on 8 April. Submissions close on 19 May 2008.
Legislation to remove same-sex discrimination
Posted on April 29, 2008The Attorney-General Robert McClelland has announced that the government will introduce legislation to remove same-sex discrimination from a wide range of Commonwealth laws . This reform follows the 2007 report of HREOC, Same-Sex: Same Entitlements, which focussed on financial and...
APRA prohibits "covered bonds" by ADI's.
Posted on April 28, 2008APRA has confirmed its prohibition of covered bonds. Covered bonds are secured ADI funding structures whereby an ADI issues debt instruments in conjunction with a cover pool of the ADI?s assets, which are held by the ADI or in a...
Corporate Governance In Today's Volatile Market Condition
Posted on April 28, 2008The Minister for Superannuation and Corporate Law's speech on Corporate Governance In Today's Volatile Market Condition summarises the government's caution about further regulation as a response to the sub-prime crisis: "on the whole, our robust financial system has coped extremely...
ACCC report on anti-competitive practices by health funds or providers
Posted on April 28, 2008The ACCC has released its 2006-2007 report to the Senate of ?any anti-competitive practices by health funds or providerswhich reduce the extent of health cover for consumers and increase their out-of-pocket medical and other expenses?. The report covers: Portability of...
Takeovers Panel rejects claim in respect of bank share securities
Posted on April 28, 2008In the matter of BioProspect Limited 02 [2008] ATP 6 the Takeovers Panel refused to declare unacceptable circumstances under the takeover provisions of the Corporations Act. The ANZ Bank had failed to lodge any substantial holder notice in relation to...
Predatory pricing and other Trade Practices Act small business amendments
Posted on April 27, 2008As foreshadowed earlier this year, the Rudd Government has announced a package of measures to further amend the Trade Practices Act 1974 including the predatory pricing amendments passed late last year The Government?s amendments will: ensure that victims of predatory...
.au domain name registration and transfers policy
Posted on April 26, 2008A new policy on transfers of .au domain names will take effect on 1 June 2008. auDA (the Australian Domain Name Administrator) has announced that key features of the new policy are as follows: it will not be allowable to...
ASIC reports on the implementation of the new debenture regulatory measures
Posted on April 23, 2008ASIC has released a report (Report 127: Debentures ??? Improving disclosure for retail investors) presenting the findings of a review into disclosures made by each of the unlisted, unrated debenture issuers against the new disclosure regime. The disclosures are based...
Disqualification under APRA Administered Legislation
Posted on April 23, 2008APRA has released notes from a presentation on Disqualification under APRA Administered Legislation by its General Counsel. The presentation focusses on the new procedures under the The Financial Sector Legislation Amendment (Review of Prudential Decisions) Bill 2008 which is expected...
Annual Review of Regulatory Burdens on Business ? Manufacturing & Distributive Trades
Posted on April 23, 2008The Productivity Commission has published an issues paper to assist those preparing submissions to its review of regulatory burdens on manufacturing and the distributive trades. Schedule B lists the areas of concern in its last review. These include: Food Therapeutic...
Annual Review of Regulatory Burdens on Business ??? Manufacturing & Distributive Trades
Posted on April 23, 2008The Productivity Commission has published an issues paper to assist those preparing submissions to its review of regulatory burdens on manufacturing and the distributive trades. Schedule B lists the areas of concern in its last review. These include: Food Therapeutic...
Change to foreign investment policy for the development of commercial land
Posted on April 22, 2008The Assistant Treasurer and Minister for Competition Policy and Consumer Affairs, Chris Bowen MP, has announced that the Rudd Government will change the foreign investment policy to extend the timeframe for the development of vacant commercial land from 12 months...
Bank of England Special Liquidity Scheme
Posted on April 22, 2008Although there are newspaper reports (The Australian) of the Reserve Bank of Australia buying mortgages to provide market liquidity it has not published details apart from Glenn Steven's recent speech. In England, the Bank of England has announced a scheme...
Board communication in times of uncertainty
Posted on April 21, 2008I gave a presentation to a board of directors last night on issues arising from the sub-prime crisis and the credit crunch. I made the observation that in times of uncertainty it was important for directors to pay close attention...
Reserve Bank?s review of Australia's payments system interchange fees
Posted on April 21, 2008The Reserve Bank has released the preliminary conclusions of the 2007/08 review (pdf) of the payments system reforms undertaken by the Payments System Board. In respect of the regulation of interchange fees, the Board?s view is that further changes to...
Reserve Bank???s review of Australia's payments system interchange fees
Posted on April 21, 2008The Reserve Bank has released the preliminary conclusions of the 2007/08 review (pdf) of the payments system reforms undertaken by the Payments System Board. In respect of the regulation of interchange fees, the Board???s view is that further changes to...
Australia 2020 and regulation
Posted on April 20, 2008The first priority from the Economy stream at the Australia 2020 summit was: This stream advocated a fundamental commitment to creating a seamless national economy and single national markets in major areas of economic activity (for example, labour, energy, water,...
Anti-money laundering software in action
Posted on April 20, 2008This report from Canada's Globe and Mail recounts how the alleged relationship between Eliot Spitzer (the former governor of New York who resigned in disgrace last month) and a high-priced call girl was uncovered by Mr. Spitzer's bank. It reported...
ASIC Report on "equity stripping"
Posted on April 19, 2008ASIC has issued a report on the practice of ?equity stripping? (pdf), where fringe brokers refinance vulnerable borrowers in financial stress into loans they cannot afford, in order to earn substantial fees. This report draws on a qualitative examination of...
Takeovers Panel Guidance Note on collateral benefits
Posted on April 19, 2008The Takeovers Panel has issued Guidance Note 21 which sets out the Panel's approach to collateral benefits. The Panel starts from the idea that unacceptable circumstances will be likely to exist whenever a bidder provides a security holder something of...
Instalment Contracts and the Uniform Consumer Credit Code
Posted on April 17, 2008The Justice Legislation Amendment Bill 2008 (pdf) has been introduced into the Queensland Parliament to amend the Consumer Credit Code (the Code) to ensure particular contracts for the sale of land or goods by instalments (known as ?terms sale of...
Draft AML/CTF Rules relating to the definition of 'loan'
Posted on April 17, 2008Austrac has released draft AML/CTF Rules (pdf) which carve out from the definition of 'loan' in paragraph (g) in section 5 of the AML/CTF Act, certain products such as money market instruments, government or corporate bonds, debenture stock, bonds and...
Consumer credit interest rate cap for Queensland
Posted on April 16, 2008The Consumer Credit (Queensland) and Other Acts Amendment Bill 2008 (pdf) has been introduced into Queensland Parliament. The Biil, if passed, will introduce the concept of a maximum annual percentage rate for consumer credit contracts. In calculating the rate, fees...
Prudential supervision of general insurance groups
Posted on April 15, 2008The Australian Prudential Regulation Authority (APRA) has released its draft prudential framework for supervision of general insurance groups. The package consists of three draft prudential standards and a discussion paper. The package also responds to recommendations 38 and 39 of...
The Reserve Bank as a lender of last resort
Posted on April 15, 2008Reserve Bank Governor Glenn Stevens has spoken about the role of central banks as providers of liquidity and as lenders of last resort in times of crisis in this speech. He defined "lender of last resort" as follows: the role...
Privacy Commissioner issues draft data breach notification guide
Posted on April 14, 2008The Australian Privacy Commissioner has issued a draft Voluntary Information Security Breach Notification Guide for consultation. The Guide aims to assist agencies and organisations to minimise the possibility of an information security breach breach occurring and how to prepare for...
What boards should be doing in the credit crisis
Posted on April 13, 2008I attended a timely presentation by Mark Phelps of Ernst and Young Brisbane last week on the risks that boards should be focussing on in the current period of uncertainty in the financial markets. There was anecdotal discussion about credit...
Disclosure of equity derivatives in takeovers
Posted on April 13, 2008The Takeovers Panel has released a guidance note considering when non-disclosure of long equity derivative positions may give rise to unacceptable circumstances in a takeover. Where there is a control transaction, the Panel would expect that all long positions which...
Cadbury fails to stop Darrell Lea from using the colour purple
Posted on April 11, 2008In a partial rehearing of its passing off action against Darrell Lea, Cadbury has failed to stop Darrell Lea from using the colour purple.[ Cadbury Schweppes Pty Ltd v Darrell Lea Chocolate Shops Pty Ltd (No 8) [2008] FCA 470]...
MBF demutualisation scheme
Posted on April 11, 2008The Federal Court has authorised MBF Australia Limited to convene a meeting of its members to consider a scheme of arrangement which involves the company's demutualisation ( MBF Australia Limited, in the matter of MBF Australia Limited [2008] FCA 428)...
Cross border data flows: Data Privacy Pathfinder projects
Posted on April 10, 2008Special Minister of State, Senator The Hon John Faulkner has outlined in a speech the steps Australia is taking to ensure organisations provide protections to personal information sent off-shore. As part of its work on the APEC Data Privacy Sub-Group...
Account Switching Facilitation Package
Posted on April 10, 2008The Australian Payments Clearing Association (APCA) has released its First Progress Report (pdf) on the development of an Account Switching Facilitation Package which will include a central registry facility to collect details of customers? direct debit and credit arrangements to...
Foreign insurers in Australia
Posted on April 08, 2008The Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC) are jointly reminding direct offshore foreign insurers (DOFIs) and local insurance brokers about the new authorisation requirements for foreign insurers that come into effect on 1...
Regulation of private equity in Australia
Posted on April 08, 2008The Minister for Superannuation & Corporate Law has given a speech outlining the Government?s views on balancing the key objectives of investor protection, prudential integrity and high quality domestic markets, while maintaining and promoting Australia as an attractive investment destination...
Hedge funds and derivatives
Posted on April 08, 2008The Minister for Superannuation & Corporate Law's recent speech discussed why Treasury will conduct a review of the current disclosure requirements of equity derivatives: Australian regulation of hedge funds is directed at disclosure requirements, along with their licensing and registration...
Borrowing by SMSF's: ATO Alert on instalment warrants
Posted on April 07, 2008The ATO's Taxpayer Alert TA 2008/05 "Certain borrowings by self managed superannuation funds ", discusses arrangements under which the trustee of a self managed superannuation fund (SMSF) enters into certain limited-recourse borrowings, which may not meet the conditions in subsection...
Merger of Financial Services External Dispute Resolution Schemes update
Posted on April 07, 2008From 1 July 2008 the dispute resolution function currently conducted by the Banking and Financial Services Ombudsman (?BFSO?) will be conducted by a new company, Financial Ombudsman Service Limited (?FOS?), which will merge BFSO?s operations with those of the Insurance...
The rules on credit listings
Posted on April 07, 2008Banking and Financial Services Ombudsman's Bulletin 57 (pdf) discusses the requirements of the Privacy Act in relation to the listing of overdue payments and the inter-relationship of credit listing with the requirements of the Uniform Consumer Credit Code ...
Austrac issues replacement declaration on managed investment schemes
Posted on April 07, 2008The Austrac declaration relating to managed investment schemes has been updated. This declaration instrument deals with section 28 of the AML/CTF Act applying to certain managed investment schemes' customers before 31 January 2008. The declaration instrument replaces the draft AML/CTF...
ASX Short Selling Consultation Paper
Posted on April 06, 2008Following the Government's decision to remove the ambiguity in section 1020B of the Corporations Act around the disclosure of ???covered??? short sales, the ASX has released a public consultation paper (pdf) inviting comments on a range of initiatives the ASX...
Register of Lobbyists
Posted on April 06, 2008Cabinet Secretary, Senator John Faulkner, has released an exposure draft of the Lobbying Code of Conduct. The Code will underpin the operation of the Register of Lobbyists. The proposed Register will allow Ministers and other Government representatives who are approached...
ASIC?s review of mortgage entry and exit fees
Posted on April 05, 2008The Government has released the Australian Securities and Investments Commission?s review of mortgage entry and exit fees (pdf). The review examines Australian mortgage fee data for 298 home loan products (standard, basic and introductory rate), from a cross section of...
Demutualisation of Health Insurers and Capital Gains Tax
Posted on April 05, 2008Treasury has issued a discussion paper on implementation of the Government's announcement to provide capital gains (CGT) relief for policyholders of health insurers who receive shares when their health insurer demutualises.
ASIC???s review of mortgage entry and exit fees
Posted on April 05, 2008The Government has released the Australian Securities and Investments Commission???s review of mortgage entry and exit fees (pdf). The review examines Australian mortgage fee data for 298 home loan products (standard, basic and introductory rate), from a cross section of...
The Rudd Government's Plans for Financial Services and Super
Posted on April 03, 2008The Minister for Superannuation and Corporate Law's speech to IFSA highlighted the following: The Government plans to ensure that mortgages and investment loans will be regulated under uniform national legislation and that mortgage brokers, non-ADI and ADI lenders will be...
ACCC update
Posted on April 03, 2008As the ACCC's grocery price hearings started, the ACCC Chairman Graeme Samuel gave a wide-ranging speech in Brisbane on 3 April. Rather than a formal presentation on regulation (see this speech by ACCC Commissioner King), Samuel gave a forthright view...
Draft AML/CTF Rule: issuing or selling a security or derivative
Posted on April 03, 2008A revised draft rule relating to item 35 of table 1 in section 6 of the AML/CTF Act has been released for further comment. The consultation period is open from 3 April 2008 to 10 April 2008.
APRA finalises key general insurance refinements proposals
Posted on April 02, 2008The Australian Prudential Regulation Authority (APRA) has released the final draft version of the proposed general insurance refinements package following industry consultation. There will be a short period of consultation on the related amendments to draft prudential standards when they...
Online financial services disclosures
Posted on April 02, 2008ASIC has released a Consultation Paper (pdf) proposing to facilitate disclosure of financial services information through email and the internet as part of the Retail Investor Taskforce work to improve access to such information. ASIC is proposing relief to enable...
Workplace Relations Act
Posted on April 02, 2008An updated consolidated Workplace Relations Act incorporating the changes made by the Workplace Relations Amendment (Transition to Forward with Fairness) Act 2008 is available here.
ASIC issues report on relief applications - September to November 2007
Posted on April 01, 2008The Australian Securities and Investments Commission (ASIC) has released a report outlining its recent decisions on applications for relief from the corporate finance, financial services and managed investment provisions of the Corporations Act (the Act) between 1 September and 30...
Component pricing
Posted on March 31, 2008The Minister for Competition Policy and Consumer Affairs, the Hon Chris Bowen MP, has announced that the Government will proceed with amendments to the Trade Practices Act 1974 (TPA) relating to component pricing in advertising to consumers to ensure consumers...
Australia-USA securities and financial services mutual recognition
Posted on March 31, 2008U.S. Securities and Exchange Commission Chairman Christopher Cox and Australian Prime Minister Kevin Rudd have announced that the SEC, the Australian Securities and Investment Commission (ASIC) and the Australian Treasury Department have begun formal discussions to consider a mutual recognition...
ASIC announces financial reporting relief
Posted on March 31, 2008The Australian Securities and Investments Commission (ASIC) has announced a number of changes to Class Order 98/1418 Wholly-owned entities, which provides certain wholly-owned subsidiaries with relief from the requirement to prepare financial reports...
Reserve Bank Financial Stability Review: Crisis Management Arrangements
Posted on March 30, 2008The Reserve Bank's March 2008 Financial Stability Review gives an overview of the global financial environment and Australia's financial system concluding with a discussion of crisis management arrangements, ADIs? liquidity management policies and proposed regulation of mortgage brokers...
Standing Committee of Attorneys?General Decisions - March 2008
Posted on March 30, 2008The Standing Committee of Attorneys?General has agreed to give priority to nationally consistent regulation and co-operation in the following areas: Interstate Enforcement of Fines Workplace Privacy Personal Property Securities Law Reform Tort Law ? Proportionate Liability Accession to Hague Convention...
APRA's view on securitisation of assets for contingent liquidity purposes
Posted on March 30, 2008APRA has written to ADI's giving its view on ADIs seeking to securitise a portion of their loan portfolio specifically to create mortgage-backed securities that are eligible for repurchase agreement (repo) transactions with the Reserve Bank of Australia (RBA)...
High Court decides in favour of internet and interstate trade
Posted on March 29, 2008In Betfair Pty Limited v Western Australia [2008] HCA 11 the High Court decided that Western Australian legislation outlawing the operation of betting exchanges was unconstitutional because it imposed protectionist burdens on interstate trade and therefore contravened section 92 of...
AFS licensees: compensation requirements
Posted on March 29, 2008ASIC has issued a reminder to Australian financial services licensees that the compensation requirements in s912B of the Corporations Act 2001 commence, for most licensees, on 1 July 2008. Many licensees will comply with these requirements by obtaining professional indemnity...
Winding up statutory demand dates are critical
Posted on March 27, 2008In times of uncertainty, more company winding-up notices (statutory demands) are issued. Failure to comply results in a presumption of insolvency. So the High Court's decision in Aussie Vic Plant Hire Pty Ltd v Esanda Finance Corporation Limited [2008] HCA...
Liquidity in the Australian mortgage-backed securities market: is it time for AussieMac?
Posted on March 27, 2008Joshua Gans and Christopher Joye from the Melbourne Business School argue that the markets for primary residential mortgage-backed securities in Australia are not operating efficiently. "Under our proposal, the Commonwealth would guarantee the credit worthiness of an Australian government agency,...
AWB Class Action update
Posted on March 27, 2008AWB Ltd has announced that the class action filed on behalf of US wheat growers against the company has been dismissed by the US District Court for the Southern District of New York. ABC News reports that the Judge dismissed...
AML/CTF compliance reporting
Posted on March 27, 2008The first compliance reports (for the period from 13 December 2006 to 31 December 2007) are due by Monday 31 March. These reports are mandatory and will be important guidance for Austrac on the success of its education program and...
Financial Action Task Force Report on Terrorist Financing
Posted on March 26, 2008The Financial Action Task Force (FATF) is an inter-governmental body whose purpose is the development and promotion of national and international policies to combat money laundering and terrorist financing. The FATF has released a study (pdf) examining the means used...
COAG Regulatory Reform Agenda
Posted on March 26, 2008The Council of Australian Governments (COAG) meeting in Adelaide on 26 March 2008 focussed on health, water, regulatory reform and the broader productivity agenda. COAG has agreed to an accelerated business regulation reform agenda across 27 areas of regulatory reform,...
Copying other people's designs (update)
Posted on March 24, 2008I previously noted some recent cases on design copyright infringement, including Barrett v Metricon. In Barrett Property Group Pty Ltd v Carlisle Homes Pty Ltd [2008] FCA 375 the Federal Court has upheld Barrett's claim that Carlisle has infringed their...
Parliament in recess until Budget
Posted on March 23, 2008Commonwealth Parliament is in recess and will resume on Tuesday 13 May for the Budget.
Clarke and Dawe explain the economy
Posted on March 23, 2008According to satirists Clarke and Dawe, there's no case for more regulation to deal with the current problems. Watch the video. PS On a more serious note academics Christine Brown and Kevin Davis analyse the effect of the sub-prime epidemic...
Legal and Economic Issues in Subprime Litigation
Posted on March 23, 2008Harvard Law School has published an article on Legal and Economic Issues in Subprime Litigation by Jennifer E. Bethel, Allen Ferrell and Gang Hu which explores the economic and legal causes and consequences of recent difficulties in the US subprime...
Emissions Trading Scheme Discussion Paper
Posted on March 20, 2008The Garnaut Climate Change Review has released a discussion paper putting forward for community discussion a set of principles and design features for the delivery of an efficient and effective Emissions Trading Scheme (ETS). An ETS has two types of....
Workplace Relations Amendment (Transition to Forward with Fairness) Act passed
Posted on March 19, 2008The Workplace Relations Amendment (Transition to Forward with Fairness) Act 2008 was passed by Parliament on 19 March. (consolidated Workplace Relations Act not available yet). The Senate Education, Employment and Workplace Relations Committee delivered its report on the Bill on...
ASIC grants relief for share and interest sale facilities
Posted on March 18, 2008ASIC has announced class order relief from provisions of the Corporations Act to facilitate the operation of certain share and interest sale facilities. This relief is provided in ASIC Class Order CO 08/10 Share and interest sale facilities and explained...
Self-managed superannuation fund regulation and governance
Posted on March 11, 2008In a speech to the SMSF Professionals Association of Australia conference, Senator the Hon Nick Sherry, Minister for Superannuation and Corporate Law, discussed the Government's priorities over the coming year for the whole sector and highlighted the Government?s concern that...
Greenhouse gas emissions in transport, land-use and buildings
Posted on March 11, 2008The Garnaut Climate Change Review has released Issues Paper 5 - Transport, planning and the built environment . Submissions in response to Issues Paper 5 are due by 11 April 2008. The paper focusses on barriers to the adoption of...
APRA and ASIC release new online reporting system for dual-regulated institutions
Posted on March 10, 2008The Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC) have released a new online breach reporting system for dual-regulated institutions. The online system simplifies the process for regulated institutions to report breaches, and prospective breaches,...
New privacy guidance to assist private health service providers
Posted on March 10, 2008The Australian Privacy Commissioner, Karen Curtis, has issued new privacy guidance materials for medical practitioners and other health service providers and the public. The guidance materials consist of five information sheets for healthcare in the Australian private sector, and seven...
Are draft statements 'books' of a company?
Posted on March 10, 2008In Areva Nc (Australia) Pty Ltd -V- Summit Resources (Australia) Pty Ltd [No 2] [2008] WASC 10, the Supreme Court of Western Australia dealt with the issue whether a draft incomplete statement taken from a witness by a former solicitor...
ASIC and ASX on share lending and short selling
Posted on March 07, 2008The Australian Securities and Investments Commission (ASIC) and the Australian Securities Exchange (ASX) have issued three statements to clarify and reinforce existing obligations in relation to share lending and short selling. These statements follow the joint statement issued by the...
Self managed super funds compliance
Posted on March 06, 2008Ian Read, Assistant Deputy Commissioner of the ATO has delivered a speech on The SMSF Regulatory Environment which discussed the regulatory environment for SMSFs, upcoming rulings and determinations and what is on the ATO's "compliance radar". He made it clear...
Consumer policy under the new Government
Posted on March 06, 2008Speaking at the National Consumer Congress the Assistant Treasurer and Minister for Competition Policy and Consumer Affairs, the Hon Chris Bowen MP discussed the current policy debates of developing truly national approaches to Australia?s consumer policy framework...
Telstra loses challenge to telecommunications access regime
Posted on March 06, 2008In Telstra Corporation Limited v The Commonwealth [2008] HCA 7 the High Court of Australia upheld the constitutional validity of the telecommunications access regime set out in the Trade Practices Act. Telstra asserted that contrary to section 51(xxxi) of the...
Franchising Code of Conduct compliance manual
Posted on March 06, 2008The ACCC has published a Franchising Code of Conduct compliance manual for franchisors and master franchisees . The manual contains sample disclosure documents and checklists.
Terms contracts for sale of land are regulated by Credit Code
Posted on March 04, 2008In Geeveekay Pty Ltd & Ors v Director of Consumer Affairs Victoria [2008] VSC 50 , the Victorian Supreme Court decided that a terms contract of sale for land was regulated by the Consumer Credit Code. The Director of Consumer...
Treasury Secretary speaks about regulation and COAG reform
Posted on March 04, 2008Secretary to the Treasury, Dr Ken Henry's Ian Little Memorial Lecture pays tribute to the former Secretary of the Victorian Department for Treasury and Finance for a number of reasons including his involvement with the National Competition Policy which lead...
Misleading advertising: Kleenheat Gas deceptive pricing
Posted on March 04, 2008In Australian Competition And Consumer Commission v Wesfarmers Kleenheat Gas Pty Ltd Acn 008 679 543 the Federal Court made orders by consent against Wesfarmers Kleenheat Gas Pty Ltd in relation to conduct of Kleenheat Gas varying the pricing for...
National Rental Affordability Scheme
Posted on March 03, 2008The Prime Minister has announced the National Rental Affordability Scheme which is designed to create a new ?asset class? of affordable rental properties. Under the Scheme, the Commonwealth will provide private investors with tax credits of $6,000 a year for...
Disclosure guidance for listed entities
Posted on March 02, 2008ASX and ASIC have co-operated on the release of two Companies Updates to assist companies meet their disclosure obligations in ensuring the market is fully informed in a timely manner.. Companies Update 02/08 provides guidance on the disclosure of material...
Austrac reporting reminder
Posted on March 02, 2008All reporting entities under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) must submit a compliance report to the Australian Transaction Reports and Analysis Centre (AUSTRAC) by 31 March 2008.
Financial Disclosure Simplification update
Posted on March 02, 2008The Minister for Superannuation and Corporate Law, Senator the Hon Nick Sherry, has announced that the Financial Services Working Group will initially focus its efforts on the development of a short form disclosure document for the First Home Saver Account...
Employment Seminar: Workplace Relations under Labor
Posted on March 01, 2008On Thursday 13 March 2008 in Sydney, a seminar will be held at which Ron McCallum, Professor of Law at Sydney University, former Dean of Sydney Law School and leading authority on employment law, will guide you through and provide...
Franchising Code fact sheets
Posted on March 01, 2008Amendments to the Franchising Code became law on 1 March 2008. The ACCC has issued new publications including: Disclosure under the Franchising Code of Conduct Overview of the Franchising Code of Conduct, fact sheet The franchisee manual Resolving franchising disputes,...
Basel II update
Posted on February 28, 2008APRA Basel II specialist, Katrina Squires has given an update on outstanding issues following Basel II implementataion in Australia on 1 January 2008. These include: APRA?s review of ADIs' own internal capital adequacy assessment process (ICAAP); the inclusion in the...
Draft Corporations Amendment Regulations: managed investment schemes
Posted on February 28, 2008Treasury has released draft Corporations Regulations for consultation until 28 March 2008. These draft regulations will amend the Corporations Regulations 2001 to remove the requirement for managed investment schemes (registered schemes) to notify the Australian Securities and Investments Commission of...
Climate change, emissions trading and corporate social responsibility
Posted on February 27, 2008I recently attended a stimulating panel discussion organised by the Australasian Compliance Institute on issues businesses need to consider in dealing with climate change. The discussion showed that there is a lot of regulatory activity by different organisations across Australia...
Review of Australia's national innovation system
Posted on February 27, 2008The Minister for Innovation, Industry, Science and Research, Senator Kim Carr, has announced a review of Australia's national innovation system. The Review Panel will identify gaps and weaknesses in the innovation system and develop proposals to address them...
Deregulation update
Posted on February 26, 2008In a speech to the Sydney Institute, the Minister for Finance and Deregulation, Lindsay Tanner has reported on progress on deregulation and repeated the Government's commitment to change. "We are serious about change. I understand that business wants certainty and...
Trans-Tasman disqualification of disqualified directors
Posted on February 26, 2008The Minister for Superannuation and Corporate Law has announced that the Government will introduce legislation to ensure that persons who are disqualified from managing companies in New Zealand will also be disqualified in Australia. The amendments to the Corporations Act...
Demutualisation of Health Insurers: CGT relief for policyholders
Posted on February 26, 2008The Assistant Treasurer has announced that the new Government intends to confirm's the previous Government's policy of providing relief from capital gains tax (CGT) for policyholders of health insurers who receive shares when their health insurer demutualises...
Austrac issues generic customer identification form
Posted on February 25, 2008Austrac has issued a generic customer identification form (pdf) for reporting entities as an example of what they may choose to use under 'safe harbour' to identify and verify customers of designated services. The procedure may only be used where...
Austrac issues draft AML managed investment rule
Posted on February 25, 2008Austrac has issued draft AML/CTF Rules (pdf)to allow customers who acquired interests in a managed investment scheme between 12 December 2007 and 30 January 2008, to be treated as pre-commencement customers under the AML/CTF Act, so that the identification procedures...
National Health and Hospitals Reform Commission established
Posted on February 25, 2008Federal Cabinet has formally approved the establishment of the National Health and Hospitals Reform Commission. The Commission will provide an interim report on a long-term health reform plan to the Commonwealth Government by the end of 2008, and a final...
Inspector-General of Taxation: review of the potential revenue bias of ATO in private binding rulings involving large complex matters
Posted on February 24, 2008The Government has released the Inspector-General of Taxation?s report on the Review of the potential revenue bias in private binding rulings involving large complex matters. The review looked at whether there is a ?pro-revenue? bias evident in private binding rulings...
Emissions projections
Posted on February 24, 2008The Government has released a report (by sectors) on Australia's progress towards achieving its targeted reductions in greenhouse gas emissions under the Kyoto Protocol.
Legal professional privilege claim rejected: Cadbury v Amcor and Visy
Posted on February 24, 2008In Cadbury Schweppes Pty Ltd (ACN 004 551 473) v Amcor Limited (ACN 000 017 372)[2008] FCA 88 the Federal Court rejected the ACCC's claim for legal professional privilege and public interest immunity privilege in relation to 111 witness statements...
1000th post
Posted on February 23, 2008This is my 1000th post since this weblog began as a spin-off of my other sites on 17 July 2004 ! Here's my first post (the passage of CLERP9). If you google "australian financial services compliance" it is the number...
Review of directors' liability and financial reporting
Posted on February 23, 2008Is our corporate regime causing directors to be overly cautious when making decisions, particularly in fast-moving and complex business situations? In a speech to ASIC's Summer School by Minister for Superannuation and Corporate Law Nick Sherry (delivered by Treasury Secretary...
Mutual Recognition of Cross-Border Financial Services Regulation
Posted on February 23, 2008In an address by Dr Ken Henry, Secretary to the Treasury, to the ASIC Summer School he outlined the Treasury?s perspective on the important policy issues associated with the mutual recognition of securities regulation generally and, specifically, with the United...
Misleading advertising: Prouds was/now ads unlawful
Posted on February 23, 2008In Australian Competition and Consumer Commission v Prouds Jewellers Pty Ltd [2008] FCA 75 the Federal Court held that 'Was/Now' discount advertising by Prouds Jewellers Pty Ltd was misleading in breach of the Trade Practices Act 1974. The advertising of...
The Council for the Australian Federation
Posted on February 21, 2008The Council for the Australian Federation has been created by the Premiers and Chief Ministers of all States and Territories as a means of working together to improve the way that the States and Territories deliver key services. The Council...
Internet filtering
Posted on February 21, 2008The Australian Communications and Media Authority's (ACMA) has published its first report on international developments in internet filtering technologies and other safety initiatives. The report, Developments in internet filtering technologies and other measures for promoting online safety (pdf), draws together...
APRA's statement to Senate Select Committee on Australian financial institutions
Posted on February 21, 2008The Chairman of APRA John Laker has given his views on the effect of the current market turbulence on Australia's ADI's (banks, building societies and credit unions), insurers and superannuation funds to the Senate Standing Committee on Economics. In a...
Taxation arrangements for managed funds and property trusts
Posted on February 21, 2008The Government has asked the Board of Taxation to review the taxation arrangements that apply to managed funds. The Minister also released a consultation paper on interim changes to trading trust rules which apply to real estate investment trusts. In...
Garnaut Climate Change Review Interim Report
Posted on February 20, 2008An Interim Report has been released to provide an overview of the early directions and findings of the Garnaut Climate Change Review, as a basis for community discussion. The report says that Australia must now put in place effective policies...
Employment Seminar: Workplace Relations under Labor
Posted on February 20, 2008On Thursday 13 March 2008 in Sydney, a seminar will be held at which Ron McCallum, Professor of Law at Sydney University, former Dean of Sydney Law School and leading authority on employment law, will guide you through and provide...
Principles guiding approval of foreign government related investment in Australia
Posted on February 17, 2008The Treasurer has published the principles guiding his consideration of foreign government related investment in Australia. Significant foreign investment proposals must be notified to the Australian Government and examined by the Foreign Investment Review Board (FIRB)...
Government nominates Petrol Commissioner
Posted on February 17, 2008Assistant Treasurer and Minister for Competition Policy and Consumer Affairs, Chris Bowen, has announced Mr Pat Walker as the Rudd Government's nominee for the new Petrol Commissioner. The full-time commissioner will be predominantly be responsible for overseeing the ACCC's monitoring...
Governance of self managed superannuation funds
Posted on February 14, 2008The Minister for Superannuation and Corporate Law, Senator the Hon Nick Sherry, has announced he has commenced consultation with a range of industry organisations and practitioners about a range of practices in self managed superannuation funds (SMSFs)...
Tax Laws Amendment (Personal Income Tax Reduction) Bill 2008
Posted on February 14, 2008The Treasurer has introduced the Tax Laws Amendment (Personal Income Tax Reduction) Bill 2008 to implement the tax changes promised in the election. The changes will take effect in three stages: from 1 July 2008, 1 July 2009 and 1...
Access by persons with a terminal medical condition to their superannuation benefits
Posted on February 14, 2008The Superannuation Industry (Supervision) Amendment Regulations 2008 (No. 1) amend the Superannuation Industry (Supervision) Regulations 1994 to create a new condition of release to allow persons with a terminal medical condition unrestricted access to their superannuation benefits...
Discussion paper on National Employment Standards
Posted on February 14, 2008The Australian Government has released an exposure draft of its proposed ten National Employment Standards (NES), together with a discussion paper calling for public feedback by 4 April 2008. The NES will cover the key minimum entitlements for all Australian...
Client legal privilege in federal investigations
Posted on February 13, 2008The Australian Law Reform Commission (ALRC) has recommended 45 changes to the handling of claims of client legal privilege over material sought by federal investigatory bodies and royal commissions of inquiry. The ALRC report Privilege in Perspective: Client Legal Privilege...
Austrac publishes AML/CTF enforcement manual
Posted on February 13, 2008Austrac has published a manual (pdf) outlining its policies on the use of its enforcement powers under the Financial Transaction Reports Act 1988 (FTR Act ) and the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act). AUSTRAC has available...
Corporate governance in Commonwealth companies
Posted on February 13, 2008The Commonwealth Authorities and Companies Amendment Bill 2008 (Bill) has been introduced into Parliament. The Bill proposes substantive amendments to the Commonwealth Authorities and Companies Act 1997 (CAC Act) to align it with the Corporations Act in terms of corporate...
Workplace Relations Amendment (Transition to Forward with Fairness) Bill 2008
Posted on February 13, 2008The Government has introduced the Workplace Relations Amendment (Transition to Forward with Fairness) Bill 2008. It is based on the principles announced in Labor's election campaign here.
The Financial Sector Legislation Amendment (Review of Prudential Decisions) Bill re-introduced
Posted on February 13, 2008The Government has re-introduced into the Parliament The Financial Sector Legislation Amendment (Review of Prudential Decisions) Bill 2008 which lapsed when the election was called last year. It amends financial sector legislation to ensure that individuals and entities can seek...
Apology to Australia's Indigenous Peoples
Posted on February 12, 2008Here is the text of today's apology by Parliament to the Stolen Generation. Reconciliation Australia has background information.
Green marketing and the Trade Practices Act
Posted on February 12, 2008The Australian Competition and Consumer Commission has issued Green marketing and the Trade Practices Act to provide updated guidance for businesses and industry on the use of environmental claims in marketing. The publication aims to educate businesses about their obligations...
Graeme Samuel lunch rescheduled
Posted on February 12, 2008Graeme Samuel, Chairman ACCC will discuss issues such as amendments to the Trade Practices Act as well as the expanding responsibilities set to be given to the ACCC at an Australia-Israel Chamber of Commerce (Qld) lunch in Brisbane on 3...
Tax Laws Amendment (2008 Measures No. 1) Bill 2008
Posted on February 12, 2008The Government has introduced Tax Laws Amendment (2008 Measures No. 1) Bill 2008 to implement a number of improvements to Australia?s taxation system, including the following: Superannuation Lump Sums Paid to the Terminally Ill The Bill will ensure that superannuation...
Proposed 2008 Commonwealth legislation
Posted on February 10, 2008The Government has released a list of proposed legislation to be introduced in its first sittings in Autumn 2008. In particular, the list specifies both introduction and passage in the Autumn sittings of the Workplace Relations Amendment (Transition to Forward...
ACCC draft merger guidelines
Posted on February 10, 2008The Australian Consumer and Competition Commission has issued Draft Merger Guidelines 2008 for public comment. The guidelines outline the ACCC's administration and enforcement policy for dealing with mergers under the Trade Practices Act. It includes the factors the ACCC considers...
Chiefs of State and Cabinet Members of Foreign Governments
Posted on February 10, 2008CIA's World Leaders publication contains an online directory of Chiefs of State and Cabinet Members of Foreign Governments which is updated regularly. The list also includes the head of the central bank for each country and Ambassadors to the United....
Product rationalisation in managed funds
Posted on February 10, 2008Treasury has released some of the submissions it received in reply to its Issues Paper issued last year to serve as the basis for consulting stakeholders about a product rationalisation mechanism in the managed funds sector.
Government to facilitate bank account switching
Posted on February 09, 2008Following a meeting with the Council of Financial Regulators on 8 February 2008, the Treasurer has announced a package of 4 measures to promote competition in the retail banking market by making it easier for customers to switch accounts between...
Franchising Code of Conduct update
Posted on February 09, 2008Amendments to the Franchising Code become law on 1 March 2008 (provided the Trade Practices (Industry Codes - Franchising) Amendment Regulations 2007 (No. 1) are not disallowed by the Senate). The ACCC has issued a fact sheet (pdf).
First Home Saver Accounts
Posted on February 09, 2008The Government has confirmed its intention to establish First Home Saver Accounts from 1 July 2008 to assist Australians to save for their first home. The account may be opened by individuals aged 18 and over who: has not previously...
Financial stability and and depositor protection in England (after Northern Rock)
Posted on February 07, 2008The English Chancellor of the Exchequer has issued a consultation paper Financial stability and depositor protection: strengthening the framework (pdf) outlining proposals to strengthen the current framework for financial stability and depositor framework in the England...
Streamlining tax law changes
Posted on February 07, 2008The Assistant Treasurer and Minister for Competition Policy and Consumer Affairs, the Hon Chris Bowen MP, has announced the appointment of a Tax Design Review Panel that will be charged with examining how to reduce delays in the enactment of...
Saying Sorry and the Bringing Them Home Report
Posted on February 07, 2008The Parliamentary Library has published a Background Note ?Sorry: the unfinished business of the Bringing Them Home report'. The note provides a useful summary of the Bringing Them Home report recommendations relating to an apology and compensation as well as...
Rights of persons with disabilities
Posted on February 06, 2008The Australian Government has issued an invitation to participate in its consultation on a National Interest Analysis (NIA) to enable it to make an informed decision on whether or not to ratify The United Nations Convention on the Rights of...
Financial Services Working Group: disclosure documents review
Posted on February 05, 2008The Minister for Superannuation and Corporate Law, Senator the Hon Nick Sherry and the Minister for Finance and Deregulation, the Hon Lindsay Tanner MP, have announced the formation of a Financial Services Working Group dedicated to looking at the current...
Statement by Reserve Bank Governor on monetary policy
Posted on February 05, 2008A Statement by Reserve Bank Governor Glenn Stevens on monetary policy was released on 5 February. In part, he said: "sentiment in international capital and equity markets remains fragile. In Australia, financial intermediaries have passed on higher costs to their...
Margin lending regulation
Posted on February 05, 2008The failure of broker Tricom last week to settle trades on time as a result of liquidity difficulty due to its margin lending activity has reportedly prompted the Australian Securities Exchange (ASX) to review margin lending (ie borrowing to buy...
Will market regulation be discussed at the 2020 Summit?
Posted on February 05, 2008Regulation doesn't get a specific session at Australia 2020 summit but long-term market observers must be wondering whether there is something that can be done to stop the de-regulation/re-regulation cycle.
Misleading advertising: carbon offset claims
Posted on February 05, 2008Following its action against Saab Australia and previous warnings about green claims, the ACCC has released an Issues Paper relating to determining how carbon offset claims by businesses can comply with the Trade Practices Act. The Paper looks at examples...
Greenhouse gas emissions and energy reporting policy paper
Posted on February 03, 2008The Australian Government has released the Greenhouse and Energy Reporting System, Regulations Policy Paper on mandatory corporate reporting of energy and greenhouse gas emissions data. The policy paper outlines proposed approaches to detailed reporting requirements for a national framework for...
High Court Alinta takeover reasons published
Posted on February 03, 2008The High Court has published its reasons for its decision in Attorney-General (Cth) v Alinta Limited [2008] HCA 2 (originally announced on 13 December 2007) that section 657A(2)(b) of the Corporations Act was not invalid for purporting to confer the....
Compliance toolkit
Posted on February 03, 2008The Compliance Toolkit has quick links to up to date source material on Corporations Act amendments, anti-money laundering, the Privacy Act, Do Not Call Register, Trade Practices Act and other compliance requirements.
Queensland Freedom of Information Review
Posted on January 30, 2008The Freedom of Information Independent Review Panel has released a discussion paper reviewing Queensland's Freedom of Information (FOI) laws. The discussion paper is intended to raise the major issues that will be considered by the Panel in recommending ways to...
Borrowing by superannuation funds
Posted on January 30, 2008The Australian Financial Review has reported industry concern that a recent amendment to the Superannuation Industry (Supervision) Act 1993 (SIS Act) may have gone too far (story not available online). The change late last year introduced a new exception to...
Privacy Commissioner calls for mandatory reporting of major data security breaches
Posted on January 29, 2008The Australian Privacy Commissioner, Karen Curtis, has called for compulsory notification of major data security breaches by Australian organisations. In a submission by her Office to the Australian Law Reform Commission (ALRC) in response to its Discussion Paper 72: “Review...
AML checklist for small business
Posted on January 29, 2008Austrac has produced an AML/CTF checklist for small business. Although the AML/CTF Act does not differentiate between the size of regulated entities, Austrac may consider the issue when deciding whether reasonable steps to comply have been taken in the context...
Societe Generale: rogue trader or poor systems?
Posted on January 29, 2008Apart from the size of the loss (about ?4.9 billion (US $7.2 billion)) attributed to the Societe Generale rogue trader Jérôme Kerviel, the most interesting aspect of the affair is the speculation over whether the Societe Generale Bank's systems were....
Risk issues for 2008
Posted on January 28, 2008Although we are starting the year with market uncertainty and credit tightening because of the sub-prime mortgage crisis, the larger issue is business judgment. How good are the risk management and decision-making processes of organisations which cannot calculate or understand...
Equine Influenza Inquiry
Posted on January 28, 2008The inquiry into the outbreak of equine influenza in Australia in August of 2007 has been in progress since October 2007. Hearings are expected to be completed in late February 2008. The report is to be provided to the government...
AML and managed investment schemes
Posted on January 28, 2008Austrac has announced that it is anticipated that regulations will take effect from late January 2008, designed to ensure that companies who carry on a business of issuing or selling interests in managed investment schemes are providing a designated service...
NSW Government report on National Industrial Relations System
Posted on January 24, 2008The NSW Government has released Working Together: Inquiry into Options for a New National Industrial Relations System (pdf) by Professor George Williams. The report is the result of an Inquiry to develop options for a national system for the regulation...
Mistaken electronic payments
Posted on January 24, 2008What are your rights when your online funds transfer is credited to the wrong financial institution account (ie an account with a different account owner or account number than intended)? The Banking Ombudsman discussed difficulties in recovering Internet banking payments...
Contact details for MP's
Posted on January 24, 2008A list of contact details for Members of the House of Representatives in the 42nd Parliament is here (pdf).
Good practices in board-shareholder relations
Posted on January 23, 2008In recent years shareholder groups (such as the Australian Shareholders Association) have been increasingly vocal in expressing their views on issues traditionally (and legally) reserved for board and management. Is it time for a re-balancing of the board-shareholder relationship? Ira...
Copyright review
Posted on January 22, 2008The Government has released an Issues Paper (pdf)calling for submissions on whether sections 47J and 110AA of the Copyright Act 1968 which permit photographs and cinematograph films to be reproduced in a different format for private use, subject to certain...
Member register access: AXA v Direct Share Purchasing Corporation Pty Ltd
Posted on January 22, 2008Last year I wrote about member register access in the context of activity by David Tweed and his associated companies including Direct Share Purchasing Corporation and National Exchange Pty Ltd. In AXA Pacific Holdings Ltd and Anor v Direct Share...
ACCC inquiry into grocery prices
Posted on January 22, 2008The Government has directed the Australian Competition and Consumer Commission to commence a formal inquiry into grocery prices. The Government has instructed the ACCC to take a broad approach to its inquiry and ensure all aspects of the chain are...
Product development, misleading advertising and regulatory compliance
Posted on January 20, 2008Why is it so hard for some businesses to accurately advertise their products? Are they too complex or is the advertising not checked? Last week the ACCC issued proceedings for misleading advertising against Crazy John's (in respect of mobile phones)....
Graeme Samuel speaks
Posted on January 17, 2008If you're in Brisbane on Wednesday 20 February, don't miss the opportunity to hear Graeme Samuel, Chair of the ACCC speak about current issues at the ACCC and the Rudd Government?s plan to enhance Australia?s competition laws. To book for...
AML/CTF draft rule: over-the-counter derivatives market
Posted on January 17, 2008Austrac has issued draft AML/CTF Rules exempting certain types of transactions relating to the over-the-counter derivatives market (pdf). These draft AML/CTF Rules relate to the exemption from the AML/CTF Act of transactions relevant to the over-the-counter derivatives market in Australia...
Garnaut Climate Change Review
Posted on January 16, 2008Although the new government has ratified the Kyoto Protocol, it had deferred any commitment on specific short-term climate change targets until receipt of the draft Garnaut report. The Garnaut Climate Change Review will examine the impacts of climate change on...
ASIC continues review of loans to indigenous borrowers
Posted on January 16, 2008ASIC has announced that National Australia Bank (NAB) has agreed to tailor its lending practices in recognition of the special needs and circumstances of borrowers in regional and remote Indigenous communities. The changes follow a review of approximately 25 loans...
Australian domain name disputes update
Posted on January 15, 2008Australian cricket captain Ricky Ponting has lodged an application (set for hearing in the Federal Court on 8 February 2008) claiming misleading and deceptive conduct against the operator of a website which described itself as "the official Ricky Ponting site":...
Treasurer rules out bank fee legislation
Posted on January 14, 2008In this transcript of an interview on ABC's 7.30 Report the Treasurer, whilst confirming he has instructed Treasury to review bank switching fees, has ruled out legislation regulating bank fees: No, I'm not talking about legislating, but it involves issues...
National Health ID system
Posted on January 14, 2008The Federal Government has announced the National E-Health Transition Authority has contracted for the development of a new national healthcare identifier service. It will identify a person's name, date of birth, address and the names and addresses of their practitioners,...
National trade measurement
Posted on January 14, 2008The Commonwealth will assume responsibility for trade measurement from the States and Territories commencing on 1 July 2010. The National Measurement Institute (NMI) will administer the national system. NMI has issued a discussion paper (pdf). Comments should be forwarded to...
Insolvency law reform: corporate insolvency information for directors, employees, creditors and shareholders
Posted on January 13, 2008Insolvency law changed on 31 December 2007 as a result of the Corporations Amendment (Insolvency) Act 2007. The ATO and ASIC have issued information sheets relevant to the changes. The IPA has issued a new Code of Professional Practice for...
Discrimination law: Human Rights and Equal Opportunity Commission
Posted on January 13, 2008The Human Rights and Equal Opportunity Commission (HREOC) administers Commonwealth discrimination laws in the areas of age, race, sex and disability discrimination. Its latest Human Rights Law Bulletin 21 gives an idea of the scope of its interests: there are...