Directors beware – personal recovery orders made where director’s duties breached
In the matter of Bryve Resources Pty Ltd [2022] NSWSC 647, the Court accepted the liquidator’s evidence of alleged breaches and found the company’s sole director breached his director’s duties, including failing to act with due care and skill, or in the best interest of the company and its creditors, when allowing the company to […]
ReadmoreShell company leads to successful unconscionable conduct claim for ‘wilful blindness’
The High Court has resolved to hold lenders responsible where they are wilfully blind to the position of a guarantor or take advantage of an individual’s lack of business acumen or financial resources. This extended to the use of independent legal and financial advice certificates (certificates) in relation to asset-based lending. The decision serves as […]
ReadmoreUnderstanding Big Brother ASIC: Exemptions from holding an AFS licence
Control of the present Organisations are facing continual changes to their regulatory requirements. So, understanding the change is essential to avoid costly fines, reputational damage, or even a loss of the right to operate. If you’re reading this article, you might be interested in whether you need to hold an Australian Financial Services Licence (AFSL) […]
ReadmoreUpdated guidance for corporate collective investment vehicles
On 23 June 2022, the Australian Securities and Investments Commission (ASIC) released a range of documents relevant to the commencement of the corporate collective investment vehicles (CCIVs) regime on 1 July 2022. The packet of material includes updates to key licensing guidance (Regulatory Guides 1, 2, and 3), general obligations under an Australian financial services […]
ReadmoreWaiting for the drop: Crypto legislation is leaked in the US as Australia grapples with its regulation
While most of the world’s regulators are still putting pen to paper, the early glimpse into the United States of America (US)’s possible crypto-regulatory future has given us much to digest. The US often leads global financial regulation on a leash. In an area as contentious and topical as crypto regulation, will Australia follow suit? […]
ReadmoreService by crypto – a new use case for NFTs!
In Australia, service of legal documents needs to be effected through the Courts’ relevant civil procedure rules. Often this is personally (in the case of individuals) or at a company’s registered office (under 109X of the Corporations Act 2001 (Cth)). By order of the Court, however, service can be effected by other means – for […]
ReadmoreFederal Court cracks down on legal privilege claims – An operational hazard for the multi-disciplinary firms?
A multi-disciplinary firm has used legal privilege to shield documents from the ATO during an audit of its multinational clients, a judge has found, in a ruling that has put multi-disciplinary firms on notice. In Commissioner of Taxation v PricewaterhouseCoopers [2022] FCA 278 Federal Court Justice Moshinsky ruled that a legitimate relationship between lawyer and […]
ReadmoreFederal Court finds RI Advice failed to adequately manage cybersecurity risks
In the landmark decision of Australian Securities and Investments Commission v RI Advice Group Pty Ltd (RI Advice) [2022] FCA 496, the Federal Court found that Australian Financial Services licensee, RI Advice, breached its license obligations to act efficiently and fairly when it failed to have adequate risk management systems to manage its cybersecurity risks. […]
ReadmoreCOVID-19 | Electronic signing and virtual meetings: New temporary relief for companies a significant step on a longer journey
In a significant development for companies, the Treasurer has utilised his new power to modify the Corporations Act 2001, the Corporations Regulations 2001, the Insolvency Practice rules, and the Passport Rules so that, for a period of six months effective from 6 May 2020: entities can hold virtual meetings without the need for a physical location; […]
ReadmoreCOVID-19 | ‘Business days’ when business has changed
The ‘business day’ in a new light As at 29 March 2020, the Morrison Government had announced sweeping shutdowns in response to the COVID-19 pandemic. Pubs and gyms are among those deemed ‘non-essential’ businesses and required to shut down. Businesses which do not fall under this qualification, including banks, remain open. Australians are being advised […]
ReadmoreMortgagees and verifying mortgagors’ identities – a time of change
On 18 December 2019, the Australian Registrars National Electronic Conveyancing Council (ARNECC) released a consultation draft of version 6 of its Model Participation Rules. It pertains to Mortgagees’ “Verification of Identity” (VOI Draft) requirements when registering mortgage securities, which are separate to AML / CTF KYC requirements. The VOI Draft – which contains one very […]
ReadmoreCulture-related Regulatory Enforcement: Where might the Australian ‘BEAR’ go hunting?
This two-part briefing has been prepared for in-house legal, risk and compliance professionals in financial services firms, including insurance and superannuation entities. Part one of this briefing covers the following matters: Introduction to the “Banking Executive Accountability Regime” (BEAR) What is required under the regime and penalties for individuals and companies BEAR’s imminent expansion to […]
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