Banking and finance Publications

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Regulator - November 2009
Mallesons’ Regulator Newsletter offers perspectives on current regulatory issues from the Market Regulation team.

Unlisted structured products in Hong Kong - changes to private placements proposed - 4 November 2009
Important further changes to the offering of structured products have been proposed by Hong Kong’s Securities and Futures Commission (SFC).

Regulator - October 2009
Mallesons’ Regulator Newsletter offers perspectives on current regulatory issues from the Market Regulation team.

Octaviar, round 3 - the saga continues. What should we do now? - 19 October 2009
As we reported on 16 October, in the ongoing Octaviar matter an application was lodged with the High Court on Thursday 15 October 2009 for special leave to appeal against the decision of the Queensland Court of Appeal, which had overturned the unsettling first instance judgement.

Octaviar - the saga continues: appeal to the High Court - 16 October 2009
The Public Trustee of Queensland has lodged an application for special leave to appeal to the High Court from the decision of the Queensland Court of Appeal (see our Alerts of 18 September and 21 September 2009).

Banks’ reputational risk can no longer be handled just by marketing departments - 7 October 2009
The China Banking Regulatory Commission (CBRC) has recently released a Guidance on Commercial Banks’ Management of Reputational Risks - changing the way financial institutions manage reputational risks. The new guidelines are aimed at having commercial banks take ownership of addressing and managing such risks.

Draft short selling disclosure regulations released - 2 October 2009
Following a period of public and targeted consultation with key stakeholders, the Minister for Financial Services, Superannuation and Corporate Law today released the much anticipated draft regulations for the permanent reporting and disclosure regime for short selling.

Reform of the sale of unlisted structured products in Hong Kong - the devil is in the detail - 29 September 2009
Hong Kong’s Securities and Futures Commission (SFC) issued the “Consultation Paper on Proposals to Enhance Protection for the Investing Public” last Friday. Many of the proposals and the principles supporting them are expected. There are however, many details that are unexpected. The proposals will have far reaching implications for future product development.

Octaviar - was it all just a bad dream? - 21 September 2009
The Octaviar decision has been emphatically overturned by the Queensland Court of Appeal. But this does not yet mean that life necessarily returns to the way it was. For a start, there is the possibility of appeal. In any event, the “genie is out of the bottle”: parties who want to attack charges will be looking closely at the registration provisions of the Corporations Act and the drafting and registration of charges and variations, and at least one remark in the appeal judgment may leave some uncertainty. Thus, parties taking security will need to remain alert, though not alarmed.

Octaviar decision overturned on appeal - 18 September 2009
The Queensland Court of Appeal has found for Fortress in the appeal from the decision of McMurdo J in Re Octaviar Ltd; Re Octaviar Administration Pty Ltd [2009] QSC 37, thus overturning the decision at first instance.

Australian carbon trading documentation launched - 10 September 2009
The Australian Financial Markets Association (AFMA) has launched its recommended form of Australian documents for domestic and international carbon trading. These documents (which are based on well-known international standards) are aimed at facilitating the growth

Changes to Australian IWT for debt instruments issued by the Commonwealth, States, Territories and their authorities - 24 August 2009
The Treasurer and Assistant Treasurer have announced that the Federal Government intends to change the Australian interest withholding tax (IWT) treatment for certain bonds, notes and other debentures and debt interests (debt instruments) issued by the Commonwealth, States and Territories and their authorities. The Federal Treasury also released an exposure draft of amending legislation and explanatory material to implement these changes.

Regulator - 2nd edition - 14 August 2009
Mallesons’ Regulator Newsletter offers perspectives on current regulatory issues from the Market Regulation team.
Changes to the National Consumer Credit Protection regime - 14 August 2009
The Government has announced an accelerated timetable for “responsible lending” requirements. From January 2010 - in less than four months - these will affect finance brokers, and lenders other than authorised deposit-taking institutions and registered financial corporations. Responsible lending obligations will affect other lenders from January 2011, in line with the previously announced timetable. Also, the extension of the Code to residential investment lending will be delayed to July 2010. In a further development affecting all credit providers, draft regulations have been released. These include key exemptions from the licensing provisions.

Chinese regulator issues new rules to regulate derivatives transactions - 10 August 2009
中文版
In a move designed to protect onshore (domestic) Chinese banks and their customers from exposure to derivative products which are perceived as being high risk, the China Banking Regulatory Commission (CBRC) has unveiled stringent new rules to further regulate the issue and use of derivative products.

Lehman Brothers’ priority provisions upheld - 5 August 2009
The High Court of England and Wales recently upheld the priority given to investors over the rights of Lehman Brothers as a swap counterparty in a credit-linked note structure. This means that, as a matter of English law, Lehman Brothers’ default under the swap will cause it to rank behind the investors on the application of the collateral which secures the amounts owed to the investors and Lehman Brothers.

New margin lending regulation: 7 steps for advisers - 7 July 2009
Legislation regulating margin lending as a financial product has been introduced into Federal Parliament. This alert provides seven steps to help financial planners and others involved in advising on and distributing margin loans to develop a plan to comply with the new regime.

Regulator - 2 July 2009
Mallesons’ Regulator Newsletter offers perspectives on current regulatory issues from the Market Regulation team.

Unfair Contracts Bill: implications for financial services providers - 30 June 2009
Financial services providers will be regulated under a proposed national unfair contracts regime (“regime”) from 1 January 2010. The regime will apply to new contracts entered into after 31 December 2009, and also affect contracts that are varied after that date (but only to the extent of the variation). The first step will be to identify the affected products and services.

PPS Bill: major changes to personal property securities registration - 30 June 2009
Proposed changes to the Personal Property Securities Bill 2009 (PPS) recently introduced into the House of Representatives, signfies an overhaul of the registration of securities.

New Australia - NZ double tax agreement signed - 29 June 2009
The Australian and New Zealand governments today announced that the two countries have signed a new tax treaty to replace the existing 1995 treaty and 2005 protocol.

National Consumer Credit Protection Bill - 25 June 2009
The National Consumer Credit Protection Bill 2009 (Bill) has been introduced to Parliament. The Bill will mean sweeping changes for the Australian credit industry and a wide range of businesses that provide credit-related services. The Bill will establish a national licensing regime and impose new responsible lending obligations (the commencement of these will be delayed to 1 January 2011).

Unfair terms Bill introduced into Federal Parliament - 24 June 2009
The Minister for Competition Policy, Craig Emerson, today introduced the much-anticipated Trade Practices Amendments (Australian Consumer Law) Bill 2009 (Bill) into Federal Parliament.

Analysis of the NSW mortgage duty changes - 19 June 2009
The NSW Government has introduced into Parliament the State Revenue Legislation Further Amendment Bill 2009. Among other things, it seeks to make several significant amendments to the mortgage duty provisions in the Duties Act 1997 (NSW), with effect from 1 July 2009. These changes will affect securities put in place prior to 1 July, as well as those executed after this date.

Australian Federal Court excludes forwards from derivative regulation - 18 June 2009
In a recent decision, the Federal Court of Australia has made some unexpected findings that, if taken to their apparently logical conclusion, might be argued to exclude some common derivatives from the Australian financial services regulatory regime. It is an interesting result, particularly in the context of the current global focus of expanding regulatory reach.

Major NSW Stamp Duty changes announced - 18 June 2009
The NSW government has announced significant changes to the stamp duties laws which will impact on financiers, borrowers, property development and the secondary market for landowning entities.

China prepares for consumer finance companies - 25 May 2009
China plans to introduce a pilot scheme allowing the establishment of domestic and foreign-invested consumer finance companies in 4 major cities - Beijing, Shanghai, Chengdu and Tianjin. The China Banking Regulatory Commission (CBRC), the national banking supervisory body, has issued Draft Measures on Managing Trial Consumer Finance Companies (Draft Law) for public consultation for one month.

Australian financial authorities release report on OTC market - 22 May 2009
Today, the three Australian financial authorities (the Australian Prudential Regulation Authority, the Australian Securities and Investment Commission and the Reserve Bank of Australia) published their joint report on the Australian over-the-counter (OTC) derivatives market. The report summarises the results of the survey which the authorities conducted in respect of the OTC market as well as identifying a number of areas in which practices in the Australian OTC market might be enhanced.

Changes to consumer credit regulation - implications for insurance - 19 May 2009
A package including the exposure draft of the National Consumer Credit Protection Bill 2009 (Bill) and associated draft regulations was released on 27 April 2009 with a four week consultation period. The Bill introduces a new Australian credit licensing regime, sets out the requirements under that regime, establishes new “Responsible Lending Conduct” obligations and attaches the National Credit Code as Schedule 1. There are also exposure draft regulations which supplement the Bill.

China issues new corporate restructuring tax rules - 15 May 2009
China has released new rules on the tax treatment of various types of corporate reorganisations, including equity and asset acquisitions, mergers, debt restructurings and enterprise spin-offs. These rules fill a gap that has existed since China’s new Corporate Income Tax Law (CIT Law) became effective on 1 January 2008 and provide clarity and guidance on what tax treatment applies during a restructure and how to qualify for the available tax benefits.

The reincarnation of the administrator’s equitable lien - 14 May 2009
In our insolvency alert The Demise of the Equitable Lien for Insolvency Practitioners’ Fees and Costs? published in late 2007, we noted the risks and uncertainty for insolvency practitioners following a number of single judge decisions which seemed to unduly erode the “salvage principle” upon which the insolvency practitioner’s equitable lien is based. However, the recent decision of the Western Australian Court of Appeal in Coad v Wellness Pursuit Pty Ltd [2009] WASCA 68 (Coad) has refused to follow those decisions in holding that the administrator’s equitable lien is separate and distinct from the statutory lien and, unlike the statutory lien, is not limited to priority over floating charge assets. The decision provides a useful summary of the numerous authorities in respect to insolvency practitioner’s liens and the salvage principle.

Exposure Draft on unfair terms released - 12 May 2009
In February 2009, , we reported a key milestone in the Rudd Government’s quest towards a national consumer protection law: the announcement by the Minister for Competition and Consumer Affairs to fast track the proposed national unfair terms regime. Yesterday, Minister Bowen released part of the blueprint for this regime - the Trade Practices Amendments (Australian Consumer Law) Bill 2009 (Exposure Draft), which will amend both the Trade Practices Act 1974 (Cth) and Australian Securities Investment Commission Act 2001 (Cth).

Release of new margin lending & securities lending regulation - 7 May 2009
The Corporations Legislation Amendment (Financial Services Modernisation) Bill 2009 was released today. This Bill (together with the National Consumer Credit Protection Bill 2009 that was released last week) implements phase 1 of the Government's Action Plan for the regulation of credit. The Bill will have a significant impact on any person that issues, or provides advice in relation to, margin lending or securities lending facilities.

New mortgage rules for NSW - 7 May 2009
The Real Property and Conveyancing Legislation Amendment Bill 2009 was passed by the NSW Parliament on 6 May 2009. The Bill makes important changes to the law regarding the execution of Torrens title mortgages in NSW. It is a response to the growing threat of mortgage fraud - in particular, "identity theft" - as well as the growing number of claims against the Torrens Assurance Fund arising out of forged mortgages. The Bill will commence on a date to be proclaimed.

Octaviar - proposed solutions for the past and the future - 1 May 2009
The Qld Supreme Court's decision in Re Octaviar Ltd; Re Octaviar Administration Pty Ltd [2009] QSC 37 (6 March 2009) has generated a great deal of concern (and inconsistent positions) in the banking and finance industry, and among legal and other advisers. In an effort to focus the debate and begin to stabilise market practice in a post-Octaviar environment, Mallesons Stephen Jaques and Allens Arthur Robinson are making available to the market some practical solutions which we have formulated together, working with John Sheahan SC.

Release of National Consumer Credit Protection Bill 2009 - 27 April 2009
A public exposure draft of the National Consumer Credit Protection Bill 2009 was released today. The Bill implements phase 1 of the Government’s Action Plan for single, standard, national regulation of consumer credit. The Bill will have a significant impact on any person involved in the origination, management and enforcement of both consumer credit and credit provided to purchase, renovate or improve residential property for investment purposes. The key features of the Bill include the establishment of a national licensing regime and the creation of responsible lending obligations. Submissions on the Bill are due by Friday, 22 May 2009.

“No waiver” clauses: how effective are they? - 6 April 2009
The recent English decision Tele2 International Card Co SA v Post Office Ltd [2009] EWCA Civ 9 (Tele2 case) found that boilerplate “no waiver” clauses may not be effective in preserving a party’s right to terminate for breach. One needs to act reasonably promptly to reserve one’s rights and to avoid conduct which may be taken as affirming the contract or waiving one’s rights.

New Master Agreement for Financial Derivatives in China - 18 March 2009
中文版
On 16 March 2009 the China Interbank Market Financial Derivatives Master Agreement (2009 version) (NAFMII Master Agreement (2009 version)) as well as a relevant notice (NAFMII Notice (No.5)) by the National Association of Financial Market Institutional Investors (NAFMII) was released. This is the latest step by the Chinese authorities to regulate and further support the development of the financial derivatives market in China.

Court widens category of registrable instruments relating to charges - 10 March 2009
The Queensland Supreme Court handed down its decision in Re Octaviar Ltd; Re Octaviar Administration Pty Ltd [2009] QSC 37 last Friday, 6 March 2009. The decision is widely regarded as surprising because it appears to cut across current market practice.

ASIC takes further action on placements - 24 February 2009
The Australian Securities and Investments Commission accepted an enforceable undertaking from Droga Capital on 18 February 2009. It follows an investigation by ASIC into Droga Capital’s trading of securities in Flinders Mines Limited.

New national consumer law - submissions due in one month - 18 February 2009
On Tuesday 17 February 2009 the Consumer Affairs Minister, Chris Bowen MP, announced that the Federal Government is fast tracking a new Australian Consumer Law. Key planks of the new law, including unfair contract terms provisions, new civil penalties and new regulator enforcement powers, will be introduced into the Federal Parliament within five months. The Minister also launched an information and consultation paper on the new law (Consultation Paper). Comments in response to the Paper are sought by 17 March 2009.

Amendments to Part 2B of the Fair Trading Act 1999 - 23 December 2008
A Bill has been introduced into the Victorian Parliament which will amend Part 2B of the Fair Trading Act 1999. Important changes include the application of the unfair terms provisions to consumer credit contracts and the removal of the need to consider good faith in considering if a term is unfair. The new provisions will come into effect the day after the Bill receives Royal Assent.

Review of the Code of Banking Practice - Final Report Released
Independent reviewer Jan McClelland has made far reaching recommendations for changes to the Code of Banking Practice in her Final Report which was published on 16 December 2008.

New Australian short selling regime - 16 December 2008
The Corporations Amendment (Short Selling) Act 2008 became law on 11 December 2008. The three key measures include a legislative ban on naked short selling, a disclosure regime for permitted covered short selling, and clarification of the Australian Securities and Investments Commission's (ASIC) powers.

Federal Court Decision: Liquidators not personally liable for GST - 15 December 2008
On 12 December, Logan J of the Federal Court handed down his decision in a GST “test case”. The case involved the sale of “new residential premises” (which attracted GST) by a liquidator that had been appointed to a company. The question was which entity is liable for the GST on the sale: the liquidator (personally) or the company?

Australian Government releases guarantee scheme documents - 21 November 2008
The Australian Government (“Government”) has today published its guarantee facility under which Australian authorised deposit-taking institutions (“ADIs”) may apply to have deposit amounts over A$1 million and certain funding liabilities guaranteed by the Government.

ASIC focuses on ratings agencies, credit default swaps & hedge funds - 11 November 2008
The Chairman of the Australian Securities and Investments Commission outlined ASIC's priorities in an address to the Australian Corporate Lawyers Association on 7 November 2008. The priorities centre on capital markets, retail investors and consumers and international capital flows.

Australian government introduces depositor protection legislation - 15 October 2008
The Australian government has today introduced legislation into the Australian parliament to implement the Financial Claims Scheme. This is to be the legislation under which the Government’s announced 100 per cent protection of deposits with Australian Authorised Deposit-taking Institutions (ADIs) is to be implemented.

RFP invited for AOFM mortgage backed securities proposal - 14 October 2008
The Australian Office of Financial Management (AOFM) announced yesterday that it was inviting the submission of a first round of proposals from arrangers of RMBS issues.

Retail disclosure standards in Hong Kong - 10 October 2008
Issuers of structured products in Hong Kong must consider whether their offering and advertising materials adequately disclose the risks affecting investors’ returns as a result of current market conditions.

EFT Code consultation paper - submissions due 5 December 2008
Today ASIC released an EFT Code Consultation Paper. It canvasses significant changes to the EFT Code.

National consumer credit regulation: 18-24 months and national consumer law - 3 October 2008
The Australian Federal and State and Territory Governments yesterday released their plan for the national regulation of credit. The timetable is 18 to 24 months for a wide-ranging transformation of Australian financial regulation by October 2010.

ASIC modifies covered short selling ban - 23 September 2008
Late yesterday the Australian Securities and Investments Commission (ASIC) further modified the ban it introduced on covered short selling to extend it to managed investment schemes and stapled securities. This will be reviewed in 30 days along with the ban in relation to securities. See the ASIC explanatory statement and class order.

Major reform of credit and financial services laws - 3 June 2008
The Government today released a Green Paper proposing major reforms to credit and financial services laws. Mortgage lending and broking may be regulated by the Commonwealth, with other consumer lending remaining with the States and Territories. If implemented, these changes will have a major impact on the financial services sector. Submissions close on 1 July 2008.

Review of the Code of Banking Practice - Issues Paper Released for consultation - 29 May 2008
On 28 May 2008 the independent reviewer of the Code of Banking Practice published an Issues Paper as part of the 2007-2008 Review and invited comment from stakeholders. Submissions in response to the Issues Paper are invited by 11 July 2008.

Clear Channel litigation - specific performance of financing and merger agreements - 23 May 2008
Litigation concerning the alleged refusal of a consortium of banks to fund the proposed $21 billion leveraged buyout of Clear Channel Communications Inc (Clear Channel) by private equity firms Bain Capital and THL Partners (Bain/THL) settled last week leaving unanswered some interesting legal questions.

High Court decision overturns GST treatment of forfeited deposits - 22 May 2008
In a unanimous decision, the High Court has held that GST does apply to a forfeited deposit. This overturns the earlier decision of the Full Federal Court, which specified that GST does not apply to a forfeited deposit.

Personal Property Securities Bill released - 16 May 2008
A consultation draft of the Personal Property Securities Bill 2008 (Bill) was released for public comment today.

Productivity Commission Review of Australia's consumer policy framework - 14 May 2008
The Productivity Commission (Commission) released its final Report - Review of Australia’s Consumer Policy Framework (Report) on 8 May 2008. The Report contains responses to the public submissions invited in November 2007.

Australian court confirms absolute transfer - 2 May 2008
The Federal Court of Australia has confirmed the validity of the absolute transfer provisions in security lending documents. Today, Justice Finkelstein of the Federal Court of Australia handed down his decision on a preliminary, but critical, question arising from the failure of Opes Prime Stockbroking Ltd.

The Producer Offset: the financier’s perspective - May 2008
The new tax relief system brought in by the Australian Screen Production Incentive introduced a new range of tax measures for the motion picture industry in Australia, consisting of various refundable tax offsets.

UK Companies Act 2006 - April 2008 implementation - 2 April 2008
The UK Companies Act 2006 is being implemented in stages. In our last Alert on the Act we outlined some of the provisions that came into force on 1 October 2007. This Alert briefly describes some changes to the implementation timetable and the more significant provisions coming into force on 6 April 2008.

Abolition of WA security duty - 25 March 2008
This is to remind you that mortgage duty will be abolished in Western Australia from 1 July 2008.

Personal property securities reform still on the agenda - 14 March 2008
The Australian Attorney-General has confirmed that the Australian Government remains committed to reforming the law on personal property securities (PPS) and that it plans to release exposure draft legislation shortly.

Affordable housing initiative will create new property industry sector - 3 March 2008
Mallesons Stephen Jaques predicts the emergence of a new property industry sector catering for affordable housing developments, kick started by the government’s affordable housing subsidy.

First Home Saver Accounts - Consultation Paper released - 8 February 2008
The Federal Government has released its Consultation Paper on First Home Saver Accounts, which the Government anticipates will hold around $4 billion in savings after four years.

Managed investment scheme issuers are now subject to anti-money laundering laws - 30 January 2008
On Thursday 31 January 2008, the Anti-Money Laundering and Counter-Terrorism Financing Regulations 2008 will take effect under the Anti-Money Laundering and Counter Terrorism Financing Act 2006 (AML/CTF Act).

High Court decides holdbacks must be disclosed in CCC contracts - 4 January 2008
The High Court confirmed on 12 December 2007 that where a credit provider lends money under a Consumer Credit Code regulated contract for a borrower to pay a supplier, but retains a portion of the sum lent pursuant to a side agreement with the supplier, s 15B(a)(ii) of the Code requires the credit contract to disclose that the credit provider is receiving that sum and the amount of the sum.

Urgent Consumer Credit Code amendments fast-tracked - 14 September 2007
The Ministerial Council on Consumer Affairs (MCCA) has released urgent draft amendmentsto the Consumer Credit Code (Code) and Consumer Credit Regulations.

AUSTRAC clarifies treatment of securities dealing and other AML/CTF Act developments - 31 August 2007
On Friday 31 August 2007, the Australian Transaction Reports and Analysis Centre (AUSTRAC) released draft anti-money laundering and counter-terrorism financing (AML/CTF) Rules.

AML/CTF Act Tranche 2 - Will you be covered? - 14 August 2007
The Anti-Money Laundering and Counter Terrorism Financing Act 2006 currently covers a range of financial and gambling designated services. The government proposes to amend the Act to cover a range of activities.

China regulates telemarketing of non-life insurance products - 7 June 2007
China’s insurance industry regulator, the China Insurance Regulatory Commission issued a notice on 24 April 2007 regulating the telemarketing of non-life insurance products.

All payments systems are go! - 30 May 2007
The Reserve Bank of Australia has formally started its consultation process for the review of Australia's payments system reforms by releasing an issues paper. The review is broad, and is likely to impact all players in the Australian card payments system.

Personal property security reform - Will you be affected? - 28 May 2007
In our previous Review, we outlined the current proposal to reform the law on personal property securities (PPS), including the proposal to replace the current system of registration with a single national register. In this Review, we examine which types of transactions may be affected by the PPS reform.

Latest proposed changes to the section 128F interest withholding tax exemption - 16 May 2007
On 10 May 2007, Tax Laws Amendment (2007 Measures No. 3) Bill 2007 (Bill) was introduced to Parliament. The Bill includes proposed amendments which narrow the scope of the interest withholding tax (IWT) exemption in section 128F of the Income Tax Assessment Act 1936 (section 128F exemption) in relation to “debt interests” which are not in the form of debentures.

It's time to start thinking about personal property security reform - 9 May 2007
Reforming the law on personal property security (PPS) in Australia has been on the agenda for some time. However, the most recent proposal appears to be gaining momentum (including allocation of funding for the reform announced in last night’s budget). So it may be time to start thinking about how the proposed changes will affect your business.

Anti-money laundering - AML/CTF Rules finalised - 2 April 2007
On 30 March 2007, the Australian Transaction Reports and Analysis Centre (AUSTRAC) made new Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Rules under the AML/CTF Act 2006. These AML/CTF Rules relate to most AML/CTF obligations that commence on 12 June 2007 and on 12 December 2007.

Industry comments invited on EFT Code consultation paper - 1 March 2007
In January 2007, ASIC released a 129 page consultation paper canvassing a wide range of options for a far reaching revision of the Electronic Funds Transfer Code of Conduct. The closing date for submissions is Friday 13 April 2007. Financial institutions that offer electronic banking services to retail customers may want to consider preparing submissions. This is an important opportunity to shape what the new Code might look like!

Sons of Gwalia: shareholders as creditors - 1 February 2007
Are misled shareholders now to be treated equally with ordinary creditors in insolvency? For the moment, the answer is yes.

AML/CTF Act has commenced - 14 December 2006
The Australian Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth) has commenced. It received Royal Assent on 12 December 2006. Some key obligations under the Act commenced on 13 December 2006 as follows.

Australian Parliament passes AML/CTF Acts - 7 December 2006
On 7 December 2006, the Australian Senate passed the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth) and the Anti-Money Laundering and Counter-Terrorism Financing (Transitional Provisions and Consequential Amendments) Act 2006. There are heavy penalties for non compliance.

China opens RMB retail business to foreign banks from 11 December 2006 - 23 November 2006
China has issued new rules to govern foreign banks' activities in China from 11 December 2006. To participate in the potentially lucrative retail RMB (renminbi) business and bank card business foreign banks have to incorporate subsidiaries in China as wholly-owned banks or Sino-foreign joint venture banks. These conditions will require most international banks to radically restructure their operational structures in China.

New APRA Prudential Standards on Outsourcing - 11 October 2006
On Friday 6 October 2006, the Australian Prudential Regulation Authority (APRA) released its new prudential standards on outsourcing for authorised deposit-taking institutions (ADIs), general insurers and life companies (regulated institutions). ADIs must comply with the new prudential standards from 1 January 2007.

Commencement of the e-commerce amendments to the Consumer Credit Code - 29 September 2006
The Consumer Credit Code has been amended to facilitate electronic contracts and electronic notices. The e-commerce amendments to the Consumer Credit Code and the corresponding regulations will commence on 9 October 2006.

E-commerce amendments to the Consumer Credit Code - 29 August 2006
The Consumer Credit Code will be amended to facilitate electronic contracts and electronic notices. The e-commerce amendments to the Consumer Credit Code have now been passed, but are still to be proclaimed. The final regulations have been gazetted, but are also yet to be proclaimed. Proclamation will occur at some point after the Queensland election, to be held on 9 September 2006.

New Anti-Money Laundering and Counter-Terrorism Financing Bill - 13 July 2006
On 13 July 2006, the Minister for Justice and Customs released a revised exposure draft of the Anti-Money Laundering and Counter-Terrorism Financing Bill. Submissions are due by 4 August 2006. That means there are only three weeks for submissions to be prepared on this complex legislation which has a broad impact on business. The second draft of the Bill leaves various issues unresolved and adds new obligations.

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