Welcome to the 2nd edition of Regulator. We were encouraged by the very positive response we received to the launch edition last month - thank you. The newsletter's objective is to bring you our analysis and perspectives around domestic and global regulatory reform, in what we all know to be a rapidly changing landscape.
Mallesons is also keen to promote an environment that will support market led change, rather than one in which reforms are driven solely by regulators. While Australia's capacity to influence global reforms is obviously limited, we have more scope domestically. However, if industry does not actively engage in the development of mutually satisfactory outcomes, regulators will be forced to fly solo on reform.
This point was reiterated by regulatory participants in a roundtable hosted recently by Mallesons and INSTO Magazine at our Sydney offices on the post-GFC direction of regulation. You can read the full transcript by clicking here.
We hope you enjoy the second edition of Regulator. Please don't hesitate to contact us with your views.
Mallesons Stephen Jaques has been voted as Australia's leading law firm in the areas of Capital Markets and Banking in the latest editions of the global Expert Guides. The Expert Guides are produced by Euromoney's Legal Media Group, with inclusions based on independent peer nominations.
Mallesons received more recommendations than any other Australian firm for the 2009 editions of the “Guide to the World's Leading Capital Markets Lawyers” and the “Guide to the World's Leading Banking Lawyers”.
In recent times, the business pages of Australian newspapers seem to have carried almost daily articles about commissions paid to financial planners. The press coverage has been almost uniformly negative. Two Federal government inquiries are currently considering the matter. Two industry bodies have announced self-imposed bans on commissions. It is also a focus for ASIC, both in terms of policy development and dealing with headline cases. Comments by the Chairman of ASIC at the recent IFSA conference have reinforced the sense of the policy tide turning against commissions.
AuthorMichael Mathieson, Senior Associate
The Australian funds management industry, the fourth largest in the world, could potentially become subject to many regulatory reforms. If all of the possible reforms are implemented and the Australian regime is brought closer in line with more prescriptive regimes around the world, Australian funds will need to undergo radical change.
AuthorsJim Boynton, PartnerWill McCosker, Senior Associate
The GFC has seriously tested investor trust and confidence in the capital markets. Frozen credit combined with corporate and investment product failures have curbed investor appetite. It has also led to governments, regulators and international bodies around the world scrutinising more closely what Prime Minister Rudd calls, “a plethora of new, unregulated financial institutions that arises out of financial liberalisation”.
AuthorsDamien Richard, PartnerMichael Hung, Solicitor
Speaking at IFSA’s annual conference recently, Tony D’Aloisio, Chairman of ASIC said that the economic crisis would lead to further regulatory changes: “a case for no change or leave it to industry will not stand up”. He was not confident that the [financial services] industry will deal with all advice issues and he identified “front end commission” as causing problems for the quality of financial advice provided to consumers. Mr D’Aloisio said that financial advisers have a duty to act in the best interests of their clients. He implied that it should be imposed by statute.
AuthorMichelle Levy, Partner