Frydenberg gave ASIC barely a day’s notice on litigation funding changes

13 July 2020

The Australian Securities and Investments Commission (ASIC) has revealed that it received barely a day’s notice of the Government’s decision to pursue significant changes to Australia’s litigation funding and class actions regime.

The Treasurer, Josh Frydenberg announced the Government’s intended changes on 22 May and answering questions on notice from Federal Opposition backbencher, Steve Georgana, ASIC revealed it had been advised of the move just the day earlier, on 21 May.

What is more, ASIC said that notification of the Government’s decision had come by way of a phone call from Frydenberg to the ASIC chairman, James Shipton and without any written explanation.

Related News:

Georgana asked what written information ASIC had received to explain the Treasurer’s policies and whether a copy of the written information could be provided.

In reply, ASIC said it “did not receive any written information to explain the Treasurer’s policies.

Georgana also asked whether ASIC was asked to provide any advice in relation to the policy change in anticipation of the Government’s announcement and was told no.

Frydenberg announced in a media release that mitigation funders were to be subject to greater regulatory oversight involving a requirement for them to hold an Australian Financial Services License (AFSL) and comply with the managed investment scheme (MIS) regime.

Up until now, litigation funders have been exempt from holding an AFSL or being categorised as a financial service under the Corporations Act.

The Parliamentary Joint Committee on Corporations and Financial Services is currently inquiring into the Government’s changes.




Recommended for you

Author

Comments

Comments

But ASIC answer to the Govt....so suck it up Shipton.
You can't have massive bags full of money thrown at you with reckless abandon and then expect consideration & respect.
There is no such thing as a free lunch and when Josh says "go" , you need to jump.
What Georgana is trying to do here is stall things and complicate the issue in order to assist Labor's best ever legal friends, Maurice Blackburn.
Maurice Blackburn donates bucket loads to the Labor party every single year and an incentive exists to keep them happy.
If the litigation funders have to comply with the requirements of an AFSL & MIS regime this will make life a lot harder for firms like Slater & Gordon and Maurice Blackburn.

It is essential for litigation funding to have greater scrutiny. Janet Albrechtsen has written a number of articles in The Australian explaining how they are becoming a scourge on society.

Presumably this may reduce the numbers of Class Actions the numbers of which are have been quite significant.

From much experience my friends, colleagues and clients who have been party to Class Actins have received negligible compensation from Class actions compared with the millions received by Lawyers involved in such actions.
Class Actions are a SCAM!!!!!

"did not receive any written information to explain the Treasurer’s policies."
Oohhh diddums!!!
What, a regulator not setting Government policy. About time.
Maybe they'll do what they are supposed to do and start policing and not telling the Government what to do.
Further, this may snap them into taking legal action where they have a chance of winning as opposed to throwing good money after dud cases and whinging when they lose.

Poor asic. That would be like ASIC giving Dover advisers 1 month to find a new licensee. Oh wait. Pot/kettle.

Slate and Gordon tricked me into signing a deed that gave them control of my super worth $111630000000 and gave me 112000 from all claims when they received over $115000000 in civil claims from 2005 to 2017 it's definitely crazy to think they hide my super account from me all those years anz super is seeking legal advice on how to resolve this as the shares have been transferred to a joint super account the government need to make better policy on monitoring self managed super account s

Add new comment