Corporate Law News

REGULATORY AUTHORITIES

ASIC

Renaming of existing ASIC documents

From the 5 July 2007 onwards, regulatory guides will replace policy statements, practice notes, FAQs and other previously released ASIC guidance. The remaining regulatory documents - consultation papers, reports and information sheets - as well as class orders, instruments and forms, will continue in their current form, while new and updated documents will be published using a revised template, including document overviews and section summaries.

ASIC will also be releasing a 'regulatory road map', indexing links to regulatory documents and class orders, to assist people in locating documents on the ASIC website.

ASIC - A guide to our regulatory documents can be accessed via the following link:

http://www.asic.gov.au/asic/pdflib.nsf/LookupByFileName/ASIC_Guide_to_regulatory_docs.pdf/$file/ASIC_Guide_to_regulatory_docs.pdf

Investor directed portfolio services - consultation paper and Class Order

ASIC has released a consultation paper reviewing its approach to the regulation of investor directed portfolio services (IDPS).

Review of ASIC policy on investor directed portfolio services - ASIC consultation paper proposes a number of amendments to Policy Statement PS 148 Investor directed portfolio services, including the implementation of a 'principles based approach' to IDPS regulation, the adoption of a consistent approach to IDPS and IDPS-like schemes, and the removal of certain IDPS obligations to simplify the current regulatory framework.

The consultation paper also considers whether an Australian financial services licensee should be permitted to receive product disclosure statements issued under section 1012IA of the Corporations Act 2001 No. 50 (Cth) as an agent.

In addition to the consultation paper, ASIC has released Class Order CO 07/480 Investor directed portfolio services, investor directed portfolio-like services and managed discretionary accounts - amendments, which amends CO 02/294 Investor directed portfolio services and CO 02/293 Investor directed portfolio-like services provided through a registered managed investment scheme, to clarify auditor report requirements for IDPS, IDPS-like schemes and managed discretionary accounts.

Review of ASIC policy on investor directed portfolio services - ASIC consultation paper can be accessed via the following link:

http://www.asic.gov.au/asic/pdflib.nsf/LookupByFileName/CP_IDPS.pdf/$file/CP_IDPS.pdf

Policy Statement PS 148: Investor directed portfolio services can be accessed via the following link:

http://www.asic.gov.au/asic/pdflib.nsf/LookupByFileName/ps148.pdf/$file/ps148.pdf

CO 07/480 Investor directed portfolio services, investor directed portfolio-like services and managed discretionary accounts - amendments can be accessed via the following link:

http://www.asic.gov.au/asic/pdflib.nsf/LookupByFileName/co07-480.pdf/$file/co07-480.pdf

Consent to quote - Practice note and Class Order relief

ASIC has published a revised practice note, PN 55 Disclosure documents and PDS: consent to quote, and has granted Class Order relief to entities from obligations under the Corporations Act 2001 No. 50 (Cth) (Act) requiring them to gain the consent of a person they wish to quote in a prospectus, PDS or takeover document.

The Class Orders, CO 07/428 Consent to quote: Citing credit ratings, trading data and geological reports in disclosure documents and PDS and CO 07/429 Consent to quote: Citing credit ratings agencies, trading data and geological reports in takeovers, exempt entities from the consent provisions of the Act when quoting credit ratings, trading data and historical geological reports.

PN 55 Disclosure documents and PDS: consent to quote can be accessed via the following link:

http://www.asic.gov.au/asic/pdflib.nsf/LookupByFileName/pn55.pdf/$file/pn55.pdf

CO 07/428 Consent to quote: Citing credit ratings, trading data and geological reports in disclosure documents and PDS can be accessed via the following link:

http://www.asic.gov.au/asic/pdflib.nsf/LookupByFileName/co07-428.pdf/$file/co07-428.pdf

CO 07/429 Consent to quote: Citing credit ratings agencies, trading data and geological reports in takeovers can be accessed via the following link:

http://www.asic.gov.au/asic/pdflib.nsf/LookupByFileName/co07-429.pdf/$file/co07-429.pdf

MIS withdrawal rights and scheme liquidity

ASIC has published a consultation paper on withdrawal rights disclosure and liquidity risks in relation to pooled mortgage schemes.

Managed investment schemes: Withdrawal rights and scheme liquidity proposes a number of minimum standards for responsible entities of pooled mortgage schemes in relation to risk management, risk monitoring and disclosure of withdrawal rights to members.

Submissions on the consultation paper are invited and must be received by 21 August 2007.

Managed investment schemes: Withdrawal rights and scheme liquidity can be accessed via the following link:

http://www.asic.gov.au/asic/pdflib.nsf/LookupByFileName/cp_managed_investments_liquidity.pdf/$file/cp_managed_investments_liquidity.pdf

Tracing beneficial ownership - Policy Statement update

ASIC has reviewed its policy on beneficial ownership tracing to incorporate previous guidance contained in Information Release IR 05/50 ASIC revises practice in relation to beneficial tracing notices, and its current approach to tracing requests received from non members.

The updated Policy Statement, PS 86 Tracing beneficial ownership, also takes into account recent court judgements involving the operation of the beneficial ownership tracing sections in the Corporations Act 2001 No. 50 (Cth).

Policy statement PS 86 Tracing beneficial ownership can be accessed via the following link:

http://www.asic.gov.au/asic/pdflib.nsf/LookupByFileName/ps86.pdf/$file/ps86.pdf

Information Release IR 05/50 ASIC revises practice in relation to beneficial tracing notices can be accessed via the following link:

http://www.asic.gov.au/asic/asic.nsf/byheadline/IR+05-50+ASIC+revises+practice+in+relation+to+beneficial+tracing+notices?openDocument

Updated AFS licensing requirements

ASIC has published a revised Policy Statement and Pro Forma licence conditions, and withdrawn three guides in relation to Australian financial services (AFS) licensing requirements.

The updated Policy Statement PS 166 Licensing: Financial requirements contains a revised approach to calculating 'surplus...