IMF granted MIS licence
Litigation funding group IMF has been granted a licence by the Australian Securities and Investments Commission (ASIC) that will enable it to fund class actions and multiparty group actions throughout Australia.
The ASIC licence will enable IMF to issue interests in registered and unregistered managed investment schemes (MISs), and IMF is moving to register future class and group actions as MISs. IMF is the only litigation funder to hold such a licence in Australia.
At the end of last year, IMF and other litigation funding groups sought exemptions from ASIC regarding a requirement to register multiparty litigation under the MISs regime. While IMF was successful in getting an exemption from having to register several class actions as MISs, group actions — which include Great Southern and Australian Stockbroking and Advisory Services — were not.
IMF’s standpoint is that the registration of an MIS brings with it increased levels of complexity and compliance costs.
IMF’s decision about whether it would just act for sophisticates and not retail clients depends on ASIC’s ruling on June 30, when the decision will be made as to whether group actions would be classed as MISs.
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