NSW State Mini-Budget released - 11 November 2008
The Treasurer, the Hon. Eric Roozendaal MLC, has delivered the 2008-09 NSW Mini-Budget to the NSW Parliament today. The Budget seeks to support the State's tax revenue base by deferring some of the state taxes that were shortly due to be abolished and increasing the rate of land tax on certain premium properties.
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.
Tax review of managed investment trust arrangements - 29 October 2008
The Board of Taxation has today released its long awaited “Review of the Tax Arrangements Applying to Managed Investment Trusts” discussion paper which reviews the current regime applying to trusts as collective investment vehicles and assesses possible alternative taxation models.
Federal Court delivers decision regarding meaning of “absolute entitlement” trust - 29 September 2008
The Federal Court of Australia delivered its judgment in the case of Kafataris v Deputy Commissioner of Taxation [2008] FCA 1454 (Kafataris’ Case) on 24 September 2008. The decision provides some guidance as to when a particular trust is likely to qualify to be treated as an “absolute entitlement” trust for tax purposes, particularly in the absence of any definitive or binding guidance from the ATO regarding this issue.
Managed Funds - changes to the eligible investment rules (Division 6C) - 26 September 2008
The Government has introduced into Parliament changes to the rules which govern the types of eligible investment business (eg. investing in land and securities) with which certain ‘public unit trusts’ need to comply in order to maintain their “flow through” character and prevent being taxed as companies (i.e. as public trading trusts - Division 6C).
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.
ASX market rule changes for the new AQUA market - 16 September 2008
Changes to the ASX market rules that establish the new AQUA market tailored for managed funds, ETFs and structured products, commenced on Monday 15 September 2008. The new platforms will significantly simplify the process for listing a structured product on ASX.
Reminder: ASIC passporting relief notices due this month
If you are regulated by the UK FSA, the US SEC, Federal Reserve, OCC or CFTC, the Monetary Authority of Singapore, the HK SFC or the German BaFin and have been granted Australian licensing relief then this month you must lodge a notice with the Australian Securities and Investments Commission (ASIC) to continue providing financial services to wholesale clients in Australia.
Final ASIC disclosure guidelines for unlisted property and mortgage trusts - 4 September 2008
On 2 September 2008, ASIC released Regulatory Guides 45 and 46, stating its view that responsible entities of certain unlisted property or mortgage schemes should cover eight “disclosure principles” in product disclosure statements and ongoing disclosure. ASIC has accommodated some industry submissions in finalising the draft guides released in July, but there was little movement on timing - in many cases, responsible entities have less than three months to comply.
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
Confirmation of product rationalisation - 8 August 2008
Today at the IFSA Conference, Geoff Miller from the Government Product Rationalisation Panel provided some insight into what the Government’s final product rationalisation proposal might look like.
WARNING: Period for holding application money - 7 August 2008
A recent landmark decision by the New South Wales Supreme Court raises serious practical issues for Australian and offshore funds and other financial product issuers who may receive application money in Australia more than one month prior to the issue date for the financial product.
ASIC continues to take regulatory action against foreign financial services providers - 5 August 2008
In recent weeks the Australian Securities and Investments Commission (ASIC) has written to certain offshore financial services providers threatening regulatory action for targeting Australian clients where those foreign providers do not hold an Australian financial services licence or rely on an appropriate exemption.
Australia-Hong Kong mutual recognition of retail funds - 8 July 2008
The Australian Securities and Investments Commission (ASIC) and the Hong Kong Securities and Futures Commission (SFC) have announced a regime to facilitate the offering of retail funds to investors in each other's market. The announcement opens up new investment opportunities in both markets.
New Tax Rules - Distributions of managed investment trust income to foreign investors - 27 June 2008
A new final withholding tax regime has been enacted (Tax Laws Amendment (Election Commitments No.1) Act 2008) which applies to distributions of Australian source net income from Australian managed investment trusts to foreign investors.
Professional investor or not? - 23 May 2008
If banks and financial intermediaries in Hong Kong are not yet re-assessing their offerings of “professional investor only” investment products and staff sale practices to customers, they should be.
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.
Offshore funds - release of CFC/FIF issues papers - 21 May 2008
The Board of Taxation this week released issues papers on possible reforms to Australia’s foreign source income anti-tax-deferral regimes. The closing date for submissions in relation to the issues papers, and the earlier position paper released on 12 March 2008, is 20 June 2008.
Anti money laundering changes for securities dealing - 5 May 2008
On Friday 2 May 2008, the much awaited Anti-Money Laundering and Counter-Terrorism Financing Rule relating to securities dealing was made by the Acting CEO of AUSTRAC (Securities Rule).
Taxation review of managed investments – 26 February 2008
On 22 February 2008, the Assistant Treasurer announced that he had requested the Board of Taxation to review the taxation arrangements that apply to managed funds (Review).
Product Rationalisation - Treasury has released submissions - 8 February 2008
Treasury has released 17 of the 20 submissions it received in response to its product rationalisation issues paper.
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).
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.
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.
Lessons from Australia as Asian REITs thrive - 12 April 2006
Recent developments in Hong Kong and Singapore are stimulating growth in REIT activity. But the regulatory environment can still be improved, argue John Sullivan and Hayden Flinn. This article was published in International Financial Law Review March 2006.
The Australian Government Future Fund: opportunities for investment managers - 5 April 2006
The Australian Government’s Future Fund aims to fully underwrite the Commonwealth’s unfunded public service superannuation liabilities. The liabilities are expected to grow to around A$140 billion by 2020. The Fund will be seeded with A$18 billion by 30 June 2006. The Fund presents opportunities for local and overseas investment managers.
Unit pricing for listed trusts - ASIC amends Class Order - 16 January 2006
ASIC (Australian Securities & Investments Commission) has released Class Order 05/1236 relating to the discretion which may be exercised by responsible entities of registered schemes when making decisions that affect unit pricing. The Class Order took effect on 23 December 2005. It affects pricing of units in listed and unlisted registered schemes (including units which are part of stapled securities).
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