July 2007
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In this edition:
Note: All hyperlinks below were correct at the time of publication. Generally, it is too onerous a task for us to check and update these and so if a hyperlink is no longer valid, please accept our apologies.
The Corporations Legislation Amendment (Simpler Regulatory System) Act 2007 (Cth) has now passed into law. For a copy of the Act and its Explanatory memorandum, go to:
The Workplace Relations Amendment (A Stronger Safety Net) Act 2007 (Cth) has similarly passed into law. For a copy of the Act and its Explanatory memorandum, go to:
A reminder that from 20 July 2007, all employers covered by the Workplace Relations Act 1996 (Cth) are required to provide a copy of the government's workplace relations "fact sheet" to their employees. Existing employees must receive a copy of the fact sheet before 20 October 2007. New employees must receive a copy of the fact sheet within 7 days of commencing as an employee. Employers face a fine of up to $110 for each employee if they breach these requirements. The fact sheet is available at:
http://www.workplaceauthority.gov.au/docs/EMPLOYERS/FactSheet/FS-WR-020707.pdf
Amendments have been made to section 70(a)(i) of the AML/CTF Act (specified kind of transfer instruction involving use of a credit card) and to the definition of 'approved third-party bill payment system'. A copy of the Anti-Money Laundering and Counter-Terrorism Financing Rules Amendment Instrument 2007 (No. 2) can be viewed at:
Penalties of more than $9.1 million have been imposed on 11 companies and 18 individuals for a series of bid rigging and price fixing cartels in commercial air conditioning. See Media Release 191/07:
http://www.accc.gov.au/content/index.phtml/itemId/793552/fromItemId/2332
APRA has released details of proposed changes to capital requirements for authorised deposit-taking institutions and general insurers. The discussion paper and the draft prudential standards for ADIs are available on APRA’s website at:
APRA has issued a discussion paper on proposed refinements to the general insurance prudential framework. It can be viewed at:
APRA has released a paper setting out its responses to submissions on proposals to implement the standardised approaches under the Basel II Framework. It can be viewed at:
APRA has also released a paper that sets out its response to submissions on its securitisation proposals. It can be viewed at:
http://www.apra.gov.au/ADI/upload/APRA_ResponseToSubmisson_072007_v3.pdf
ASIC has launched 2 new regulatory documents in ASIC’s new, user-friendly regulatory guide format - Regulatory Guide 36 Licensing: Financial Product Advice and Dealing and Regulatory Guide 110 Share buy-backs. It has also released a "road map" as part of its Better Regulation initiatives. They can be viewed at:
http://www.asic.gov.au/asic/pdflib.nsf/LookupByFileName/ps110.pdf/$file/ps110.pdf
ASIC has released a consultation paper seeking industry and consumer feedback on proposals to update Regulatory Guide 146: Licensing: Training of financial product advisers. It is available at:
ASIC has released a consultation paper inviting comment on its proposals for administering the new compensation and professional indemnity insurance requirements applying to Australian financial services licensees who provide financial services to retail clients. The new requirements were introduced by regulation 7.6.02AAA of the Corporations Regulations on 28 June 2007 and s912B of the Corporations Act. They make professional indemnity insurance the main way licensees are to meet their compensation arrangement obligations and make licensees responsible for assessing their business and ensuring they have adequate insurance cover. The consultation paper is available at:
ASIC has released a consultation package on competition for market services (trading in listed securities and market data). It is available at:
ASIC has released a consultation paper outlining a proposal for class order relief to facilitate the provision of certain share and unit sale facilities. It is available at:
ASIC has also released a consultation paper on managed investment scheme withdrawal rights and the management of related liquidity risks. It is available at:
ASIC has announced additional relief from the requirement to prepare and lodge financial reports for some companies. ASIC Class Order 07/505 amends existing ASIC relief to reflect recent changes in the ‘large/small test’ used to determine which proprietary companies are required to prepare and lodge financial reports under the Corporations Act. The changes affect certain small proprietary companies controlled by foreign companies and registered foreign companies. See Information Release IR 07-37:
ASIC has issued a class order clarifying its auditor report requirements under its relief for investor directed portfolio services, IDPS-like registered schemes and managed discretionary accounts. See Information Release IR 07-31:
ASIC has released a technical update to Policy Statement 72: Foreign securities prospectus relief to update legislative references, remove references to outdated pro formas and update the list of ‘approved foreign markets’. It is available at:
http://www.asic.gov.au/asic/pdflib.nsf/LookupByFileName/ps72.pdf/$file/ps72.pdf
ASIC has released an updated Practice Note 55 Disclosure documents and PDS: consent to quote and given class order relief from the requirement to obtain consent to cite credit ratings, trading data and geological reports in disclosure documents and PDS. See Information Release IR 07-32:
Miscellaneous amendments to the ASX Market Rules and Procedures came into effect on 20 July 2007, reflecting the change of name of the Exchange from ‘Australian Stock Exchange Limited’ to ‘ASX Limited’. See ASX Market Circular 417/07 and attachments:
AUSTRAC has finalised its guidance notes on Correspondent Banking, Exemptions and Modifications under the AML/CTF Act, and the Register of Providers of Designated Remittance Services. The guidance notes can be viewed at:
http://www.austrac.gov.au/guidance_notes.html
According to Allens, Arthur Robinson, Focus: Capital Markets – July 2007, recent amendments to the Corporations Act have the potential to simplify the process for ASX-listed companies and managed investment schemes raising additional equity through rights issues. See:
http://www.aar.com.au/pubs/pdf/cm/focmjul07.pdf
For a general discussion of recent developments in employee relations law, see Allens Arthur Robinson, Focus: Workplace Relations - July 2007:
http://www.aar.com.au/pubs/pdf/wr/fowrjul07.pdf
Regulations have been made to give effect to some of the measures implemented under the Federal Government's 'Simpler Regulatory System' legislation. See Allens, Arthur Robinson, Client Update: Corporate and Financial Services – 3 July 2007:
http://www.aar.com.au/pubs/fmres/cucfsjul07.htm
As a result of recent changes to the law, registered managed investment schemes may now invest in unregistered schemes. For further details, see Blake Dawson Waldron, Financial Services Update - July 2007:
http://www.bdw.com.au/publications/financial/financial072007.pdf
For those interested, the decision in Seven Network Limited v News Limited [2007] FCA 1062 can be viewed at:
http://www.austlii.edu.au/au/cases/cth/federal_ct/2007/1062.html
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