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. Foreign banks (“Foreign ADIs”) authorised to carry on banking business in Australia under the Banking Act 1959 may also apply to have certain deposits and funding liabilities held by Australian residents 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.
Australian Federal Court affirms netting contract - 30 September 2008
In a decision this month, the Australian Federal Court has affirmed the close-out netting provisions of securities lending agreements based on internationally standard master agreements. The decision should be welcomed by the financial markets as it affirms the breadth of the protection given by Australian netting legislation. Also, it restates that the particular circumstances suffered by a party in insolvency are not of themselves a basis for departing from the express terms of a contract.
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.
ASIC bans naked and covered short sales from 22 September
The Australian Securities and Investments Commission (ASIC) banned covered short selling in the Australian market late on Sunday 21 September 2008. This followed an earlier move by ASIC on Friday 19 September 2008 to ban naked short selling and introduce reporting for covered short sales.
Mutual Recognition Agreement between the US and Australia - 29 August 2008
This week the Australian Securities and Investments Commission, the US Securities and Exchange Commission and the Australian Minister for Superannuation and Corporate Law, entered into a mutual recognition arrangement. Initially it will be limited to certain national exchanges and broker dealers who deal with institutional clients.
Non-traditional Undocumented Rights Issues - ASIC Class Order - 15 May 2008
Accelerated rights issues can now be done without a disclosure document - such as a prospectus or product disclosure statement.
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.
Equity Derivatives - Takeovers Panel Guidance Note issued - 14 April 2008
The long-awaited Equity Derivatives Guidance Note was released by the Takeovers Panel on 11 April 2008. Disclosure of positions taken in equity derivatives is now expected in “control” situations, by “takers” who have a combined long and physical position exceeding 5% of the underlying stock.
Equity Derivatives - new Takeovers Panel draft Guidance Note - 11 September 2007
The Takeovers Panel has released a draft Guidance Note on equity derivatives, which is now available for comment. The Panel has requested comments on the draft Guidance Note by 7 December 2007.