International Law

Are ASIC investigations of financial service providers private?

Posted on June 15, 2014
Are ASIC investigations of financial service providers private? Not automatically. In dealing with ASIC and other regulators it is important to understand that the Freedom of Information Act 1982 applies to government agency records and public disclosure is subject to the provisions of that Act...

Small amount credit changes

Posted on June 15, 2014
The National Consumer Credit Protection Amendment (Small Amount Credit Contracts) Regulation 2014 was registered on 12 June 2014. The Regulation clarifies the changes introduced on 1 July 2013 which imposed a cap on costs and a limit on fees that credit providers (excluding ADI’s) can charge consumers for small amount credit contracts...

Can a special general meeting be adjourned?

Posted on June 15, 2014
In the matter of Re1 Limited (ABN 80 145 743 862) and Re2 Limited as responsible entities for Westfield Retail Trust 1 and Westfield Retail Trust 2 (No 3) [2014] NSWSC 762 the NSW Supreme Court considered the adjournment of the adjournment of the SGM of the Westfield Retail Trust relating to its restructuring...

The role of directors in financial reports

Posted on June 15, 2014
As we approach the end of the financial year ASIC has reminded directors that “Even though directors do not need to be accounting experts, they should challenge the accounting estimates and treatments applied in the financial report, seek explanations and seek appropriate professional advice supporting the accounting treatments chosen, particularly where a treatment doesn’t reflect their understanding of the substance of an arrangement...

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COSL clarifies non-enforcement rule

Posted on June 09, 2014
COSL has clarified its rule that a financial services provider subscriber must not commence or continue with enforcement action (including legal proceedings) once the consumer makes a complaint to COSL. if legal proceedings have already commenced, COSL’s view is that, rather than seeking repeated stays and adjournments, a FSP should discontinue legal proceedings, particularly where there is no clear indication that the complaint will be closed by COSL imminently...

CAMAC review of the regulation of crowd sourced equity funding

Posted on June 09, 2014
CAMAC has published its review of the regulation of crowd sourced equity funding. CAMAC defines “crowd sourced equity funding” as follows: CSEF (alternatively described as ?equity crowdfunding? or ?investment-based crowdfunding?) is a new and still evolving concept of corporate capital raising...

Standard & Poors appeal dismissed

Posted on June 09, 2014
In ABN AMRO Bank NV v Bathurst Regional Council [2014] FCAFC 65 the Federal Court of Australia Full Court rejected the appeal of ABN Amro, Standard & Poors ratings agency and the product seller against the trial decision to hold them liable for losses incurred by 13 local councils which purchased a structured financial product known as a constant proportion debt obligation or CPDO (discussed here)...

Renewal of registration on the AUSTRAC Remittance Sector Register

Posted on June 09, 2014
AUSTRAC has released draft AML/CTF Rules relating to the renewal of registration on the Remittance Sector Register. New Chapter 70 sets out procedures relating to the renewal of registration for 3 year periods. Amendments have also been made to Part 8...

Privacy, credit and AML

Posted on June 04, 2014
Last week I spoke at the Financial Institution Auditors’ conference about privacy issues for ADI’s. ADI’s, insurers and superannuation funds have a lot of personal information about customers and have extensive reporting obligations eg ATO, APRA, FCS, AML/CTF, unclaimed money...

Draft AUSTRAC rule: electronic safe harbour

Posted on June 04, 2014
AUSTRAC has published a draft Rule which amends the electronic safe harbour procedures for medium or lower risk individual customers in r4.12.13, to be consistent with the new electronic safe harbour procedures for beneficial owners in r4.12.7(4). New Rule 4...

ASIC guidance on expert reports

Posted on March 30, 2011
ASIC has updated Regulatory Guide 111 Content of expert reports (RG 111) and Regulatory Guide 112 Independence of experts (RG 112). There is clarification about the use of the discounted cash flow methodology, particularly when valuing a start up project where there is a long lead time until cash is generated...

ASIC guidance on related party transactions

Posted on March 30, 2011
ASIC’s has issued a revised Regulatory Guide 76 Related party transactions (RG 76) setting out its views on disclosure by public companies and registered managed investment schemes (MISs) about related party transactions. The Regulatory Guide covers: Whether to enter into a related party transaction: Voting restrictions for directors at directors? meetings and when ASIC may [...

ASIC consults on debt securities

Posted on March 27, 2011
ASIC has released Consultation Paper 151 Debt securities: modifying the naming provisions and advertising requirements (CP 151 ) which sets out proposals to revise ASIC?s policy on how debt securities can be described in offer documents and the preferred form of advertising for these instruments...

Price signalling bill introduced

Posted on March 23, 2011
The Competition and Consumer Amendment Bill (No. 1) 2011 has been introduced into Parliament. The Bill prohibits both the private disclosure of pricing information between competitors and disclosures which take place in the public domain and/or are related to information other than pricing information if they were made with the purpose of substantially lessening competition...

Exposure Draft ? Covered Bonds Bill

Posted on March 23, 2011
Treasury has released an exposure draft Banking Amendment (Covered Bonds) Bill (No.1) 2011 to permit the issuance of covered bonds by Australian banks, credit unions and building societies. If passed the Bill will amend the Banking Act and permit investors to have priority over an ADI’s assets in a “cover pool”, the value of which [...

ASIC?s financial advice regulation priorities

Posted on March 21, 2011
ASIC has announced that in 2011 it will be focussing on the following financial advice themes: aggregator licensees; quality of advice; advice relating to complex products such as capital guaranteed products; and the use of managed discretionary accounts...

Online generic financial calculators

Posted on March 21, 2011
One of the most popular features on financial websites is the calculator. Providers of calculators and website owners need to be aware of ASIC’s Class Order [CO 05/1122] which gives relief from the usual licensing, conduct and disclosure requirements provided certain assumptions are disclosed...

Case note: misleading conduct in relation to consumer credit insurance

Posted on March 21, 2011
In Sahin & Anor v National Australia Bank Limited & Anor [2011] VSCA 64 the Victorian Court of Appeal varied a consumer credit insurance policy by National Australia Financial Management Ltd to cover a subsequent loan from NAB (and pay outstanding loan instalments) even though cover had not been taken out for that loan...

Failure to provide statement of advice: UBS WMA undertaking

Posted on March 20, 2011
ASIC has announced that UBS Wealth Management Australia Ltd (UBS WMA) has admitted that between January 2006 and 31 March 2010, it failed to provide Statements of Advice to 764 retail clients who invested in a category of financial products classified by UBS WMA as structured products...

Tax Forum in October

Posted on March 20, 2011
The Treasurer has announced that a Tax Forum will be held at Parliament House in Canberra on Tuesday October 4 and Wednesday October 5. The forum will include sessions to discuss personal tax, transfer payments, business tax, state taxes, environmental and social taxes, and system governance and other matters arising from the Tax System Review...

Langes+ mobile web app

Posted on March 20, 2011
If you would like to view our website on your smartphone, you can now add a web app to your smartphone screen giving easy access to mobile-friendly legal news and information about our lawyers and offices. Just go to our home page using your smartphone browser to find out how...

Business names registration draft bills

Posted on March 15, 2011
Public exposure drafts of the Business Names Registration Bill 2011, Business Names Registration (Transitional and Consequential Provisions) Bill 2011 and the Business Names Registration (Fees) Bill 2011 have been released for consultation. Public consultation is open until 24 April 2011...

Review of taxation of trust income

Posted on March 06, 2011
The Assistant Treasurer has released a discussion paper for public consultation about two recommendations from the Board of Taxation that addresses two key areas of uncertainty for trusts: ?Better align the concept of ‘income of the trust estate’ with ‘net income of the trust estate’ ?Enable the streaming of capital gains and franked distributions...

ASIC update on new market integrity rules

Posted on March 06, 2011
ASIC has announced its timetable for the introduction of market competition and released a summary of the intended market integrity rule framework that would apply. The timetable also sets out the steps required for the commencement of operation of Chi-X Australia ? the current market licence applicant...

Standard tax deductions

Posted on March 01, 2011
The Assistant Treasurer and Minister for Financial Services and Superannuation, has released a discussion paper on the design and scope of the standard tax deduction which was announced in the 2010-11 Budget. The standard deduction (not requiring proof of work-related expenses) will be $500 for 2012-13, rising to $1,000 for 2013-14 and subsequent years...

APRA clarifies Basel liquidity requirements

Posted on March 01, 2011
The Australian Prudential Regulation Authority (APRA) has clarified the treatment of high?quality liquid assets it will apply when implementing the new global liquidity standard announced by the Basel Committee on Banking Supervision (Basel Committee) in December 2010...

Financial Ombudsman Service Annual Review

Posted on March 01, 2011
The Financial Ombudsman Service is an approved external dispution resolution (EDR) scheme for Australian Financial Services and Credit licensees, including insurers. Its 2009-2010 Annual Review , especially the Comparative Tables, provides an insight into the changing nature of the customer-financial services provider relationship and regulatory supervision...

Trustee companies amendments

Posted on February 23, 2011
The Corporations and Other Legislation Amendment (Trustee Companies and Other Measures) Bill 2011 has been introduced into Commonwealth Parliament. Amongst other things, the Bill provides an administrative process for the voluntary transfer of estate assets and liabilities from a transferring entity (generally, a trustee company previously authorised under State or Territory legislation) to a trustee company [...

Director and executive remuneration bill introduced

Posted on February 23, 2011
The Corporations Amendment (Improving Accountability on Director and Executive Remuneration) Bill 2011 has been introduced into Parliament with the intention that it be passed to enable commencement by 1 July 2011. Changes have been made since the exposure draft was released...

Austrac revised fee proposal

Posted on February 20, 2011
AUSTRAC has released its Cost Recovery Impact Statement - Exposure Draft setting out its response to submissions received in respect of its discussion paper on fees. It has revised its fee proposal so that fees payable by reporting entities from 2011-12 will be calculated as follows: a base component of $284; plus for [...

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