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).
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 of the carbon trading market in Australia. We look at answering ten key questions market participants may ask.
ASIC proposes radical reforms - 18 August 2009
The Australian Securities and Investments Commission has proposed some fundamental reforms to the Australian financial services industry. If adopted, the reforms would reshape the financial advice industry. Some would also have implications for the broader financial services industry and consumers.
Regulator - 2nd edition - 14 August 2009
Mallesons’ Regulator Newsletter offers perspectives on current regulatory issues from the Market Regulation team.
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.
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
.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.
Equity derivatives: Issues paper on proposed disclosure framework - 10 June 2009
The Federal Treasury has released an issues paper as part of the Government’s assessment of the S 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.
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.
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.
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.