February « 2008 « Australian Regulatory Compliance Review from Langes+ Lawyers

February 6, 2008

Statement by Reserve Bank Governor on monetary policy

A 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 customers over the past couple of months. There has also been
some tightening of lending standards to risky borrowers, a process
which may yet have further to go."

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Posted 6th February 2008 by David Jacobson in Financial Services

Margin lending regulation

The 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 shares). (The Age)

Interestingly the ASX is still promoting margin lending options.

The Australian today discusses whether ASIC should take over the supervisory and regulatory functions of the ASX following last week’s events.

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Posted 6th February 2008 by David Jacobson in Financial Services

Will market regulation be discussed at the 2020 Summit?

Regulation 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.

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Posted 6th February 2008 by David Jacobson in Business Planning

Misleading advertising: carbon offset claims

Following 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 of claims of carbon-neutrality and claims of ‘low carbon’ and discusses what businesses need to do to substantiate those claims.

Submissions can be made orally or in writing by February 15,2008.

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Posted 6th February 2008 by David Jacobson in Environment, Trade Practices

Financial Services Working Group: disclosure documents review

The 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 key issues
associated with financial services advice and disclosure.

The Financial
Services Working Group will review the length, complexity and readability
of disclosure documentation in financial services.

The Working Group will consist of senior officers from Treasury, ASIC and the Department of Finance and Deregulation and consult with industry and consumer
groups.

The Working Group will commence its work immediately, starting with superannuation documents.

The Working Group’s mandate is to determine the best possible
approach to delivering short, comparable financial product disclosure
documents and to determine an appropriate regulatory framework that
facilitates the provision of financial advice in relation to the
important decisions that investors make with regard to their
superannuation.

Further product examination will be added to the work schedule throughout 2008.

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Posted 6th February 2008 by David Jacobson in Financial Services

February 4, 2008

Greenhouse gas emissions and energy reporting policy paper

The 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 corporations to report greenhouse gas emissions and actions to reduce emissions, including the scope of data subject to mandatory reporting, detailed definitions of terms such as facilities and emissions, registration and deregistration information, as well as reporting requirements for greenhouse gas offsets, and actions to reduce or remove emissions.

Eligible Australian corporations will be required to report on their emissions and energy for the 2008-09 financial year, with the first reports submitted by 31 October 2009.

Interested individuals and organisations are asked to submit their views on the proposals presented in the policy paper by 27 February 2008.

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Posted 4th February 2008 by David Jacobson in Compliance, Environment

February 3, 2008

High Court Alinta takeover reasons published

The 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 power on the Takeovers Panel to declare circumstances relating to the takeover of a company to be unacceptable.

The High Court unanimously allowed the appeal by the Commonwealth against the invalidity of the section and held that the Takeovers Panel does not exercise the judicial power of the Commonwealth when discharging its functions under section 657A(2)(b). The High Court decided that the Panel’s making of a declaration of unacceptable circumstances under that section does not involve resolution of a controversy about a legal obligation. Instead, it characterised the Panel’s role as the nonjudicial function of considering policy considerations relevant to the public interest: it makes orders about the process to be undertaken with respect to a takeover and what the rights of the parties should be.

The High Court confirmed that an order of a court is necessary for enforcement of compliance with the Panel’s orders.

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Posted 3rd February 2008 by David Jacobson in Corporations Act

Compliance toolkit

The 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.

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Posted 3rd February 2008 by David Jacobson in Compliance