Welcome to our Spring edition of legal and regulatory developments in Australia.
Below we consider the new Government’s policy on a number of issues and highlight other recent interesting legal and regulatory news with links to longer bulletins on each subject.
Best wishes,
Rob Hanley & Adrienne Showering
Top ten issues for Australian funds in 2011
This article considers the raft of new regulation in the financial services area and identifies practical issues for funds operating in Australia.
Read the full article here
Welcome developments for non-Australian funds
In December 2010 the Government announced an exemption from Australian tax for foreign funds that are widely held and make passive investments in Australian securities. The announcement was in part a response to issues foreign funds were experiencing in relation to the application of US accounting standards to profits derived in respect of Australian investments.
A second announced exemption addresses a further issue faced by foreign funds - namely that if they use a local manager or agent then they ran the risk of creating a permanent establishment and thereby exposing the fund to Australian tax.
Read the full article here
Further clarification of second exemption
In February the Government released exposure drafts of the proposed foreign accumulation fund (“FAF”) rule which will ease some of the existing Australian tax barriers to the offering of foreign funds to Australian investors, and the investment by Australian investors in foreign funds.
Read the full article here
Government releases draft bill to outlaw price signalling
As part of the "Competitive and Sustainable Banking System Package" recently announced, the Government has released a Draft Bill to prohibit conduct loosely described as "price signalling". The Bill is intended to capture so called “anti-competitive behaviours” in specific sectors. Those sectors have not yet been identified, and may change over time. The Government has made clear its belief that such behaviours exist in the banking sector, but the proposed laws are capable of being applied to other sectors by regulation.
Read the full article here
Australian banking reforms
Late last year, the new Australian parliament announced a broad package of reforms designed to drive a more competitive and sustainable Australian banking system.
The first article focuses on the key components of the second and third streams of the Government's reforms, which are aimed at providing support to smaller lenders and facilitating additional funding options for the financial system at large.
Read the full article here
Current issues and challenges facing boards of Australian companies
Mallesons recently carried out a survey to review the impact of the fallout of the global financial crisis on Australian directors and boards. The survey found that the extent of the regulatory changes and the populist focus of reforms may have serious adverse consequences. The survey has been incorporated into a report with commentary from Mallesons partners and is intended to make a contribution to the ongoing debate regarding the proper role and responsibilities of directors and boards in Australia.
Read the report here