ASIC extends class order relief for litigation funding schemes
The Australian Securities and Investments Commission (ASIC) has announced it will extend the interim class order relief granted to lawyers and funders involved in legal proceeding structures as funded representative proceedings.
The regulator stated that it will also extend relief on funding claims lodged with liquidators to improve the winding up of an insolvent company.
The relief will extend until 30 September 2012 and will allow a litigation funding scheme and a proof of debt funding scheme that is defined as a managed investment scheme to temporarily operate without having to comply with the requirements of the Corporations Act 2001.
These requirements include holding an Australian financial services licence covering the provision of financial services in relation to the arrangement, preparing a product disclosure statement and providing ongoing disclosure.
The relief arrangement has been allowed in order for the Federal Government to implement legislative reform it previously announced and avoid any disruption that could adversely impact plaintiffs and the efficient running of litigation, the regulator stated.
ASIC added that following any legislative change in this area, it will consider issuing further guidance about these schemes after public consultation.
Recommended for you
Digital advice tools are on the rise, but licensees will need to ensure they still meet adviser obligations or potentially risk a class action if clients lose money from a rogue algorithm.
Shaw and Partners has merged with Sydney wealth manager Kennedy Partners Wealth, while Ord Minnett has hired a private wealth adviser from Morgan Stanley.
Australian investors are more confident than their APAC peers in reaching their financial goals and are targeting annual gains of more than 10 per cent, according to Fidelity International.
Zenith Investment Partners has lost its head of portfolio solutions Steven Tang after 17 years with the firm, the latest in a series of senior exits from the research house.
