What's News in Banking and Finance

 

ASIC is pursuing changes to inject more transparency into securities lending. The discussion paper said there appeared to be differing interpretations of how the relevant interest provisions of the Corporations Act work with respect to securities lending and prime broking and that this, in turn, had contributed to difference practices for compliance (06 July 2009)

A requirement for selected advisers to send ASIC samples of product research as part of its Quality of Advice project has raised concerns among some researchers. ASIC has requested advisers send it “any financial product research material, including product comparisons” used to formulate client advice samples (03 July 2009)

Police have smashed an alleged $6 million identity theft syndicate, seizing credit card manufacturing equipment and arresting seven people in raids across two states (02 July 2009)http://www.news.com.au/dailytelegraph/story/0,22049,25721611-5001021,00.html

 

AFA renews call to restrict 'financial adviser' term
The Association of Financial Advisers (AFA) is again calling for Treasury to restrict the term 'financial adviser' amid a barrage of negative media reports on the planning industry (03 July 2009).
http://www.financialstandard.com.au/news/view/26175/

 

Rising levels of alternative assets has exacerbated concerns over valuation policies for unlisted assets, according to APRA's latest Insight report. The biggest problem for the regulator is fund reporting cycles being much more frequent than asset valuation cycles (03 July 2009) http://www.financialstandard.com.au/news/view/26168/

The personal details of millions of Queenslanders are at risk from hackers and identity fraud due to poor security in State Government computer systems. The vulnerability, which could leave people exposed to identity fraud, was revealed in a damning report by the Auditor-General (05 July 2009) http://www.news.com.au/couriermail/story/0,27574,25732782-3102,00.html

Three property trusts yesterday convinced their bankers to roll over debts totalling $1.5 billion. Leading property analyst Rob Stanton said REITs were being squeezed hard by banks. Several large trusts, including Goodman Group and Macquarie DDR Trust, have been negotiating with their lenders for weeks to roll over their debt (02 July 2009)

 

Attempts by the collapsed investment bank Lehman Brothers to shield itself from an array of lawsuits taken by aggrieved investors face a challenge from the corporate regulator. ASIC has intervened in the battle between local councils and Lehman Brothers Australia, asking the Federal Court judge hearing a dispute between councils and the bank for leave to make submissions in the case (04 July 2009)

The number of Australians filing for bankruptcy and entering into other forms of debt agreements has increased in the past three months, compared with this time last year. Figures published by the government agency Insolvency and Trustee Services Australia show the number of bankruptcies, debt agreements and Part X insolvency agreements between April and June rose 3 per cent, to 9437 (04 July 2009)

The Australian Transaction Reports and Analysis Centre (AUSTRAC) has accepted enforceable undertakings from Barclays Bank PLC and Mega International Commercial Bank Co for breaching anti-money laundering and counter terrorism laws (02 July 2009)
http://www.financialstandard.com.au/news/view/26162/

The Financial Planning Association (FPA) has called for an investigation into ASIC’s licensing system that allows product providers to hold their own Australian Financial Services Licence (AFSL). In a submission to the parliamentary inquiry into agribusiness managed investments schemes (MIS), the FPA said a regulatory arrangement in which a product provider also holds an AFSL which authorises representatives to sell a single MIS product should be investigated in terms of its appropriateness (01 July 2009)

Two international banking companies have been found to have significantly breached Australia's laws against money laundering and terrorism financing. Australia's money-laundering watchdog, Austrac, has found the British financial institution Barclays Bank and the Chinese banking corporation Mega International failed over a period of years to prevent their services from potentially being used by criminals to launder the proceeds of crime or finance terrorist operations (02 July 2009)

Jailed for card scam
A Gold Coast mechanic who defrauded credit card companies and Telstra of more than $400,000.00, has been sentenced to 5 years jail. David Mario Catania was charged with committing 500 offences of fraud and forgery from 2004-2007 in a sophisticated credit scam targeting American Express, HSBC and Bank of Western Australia (01 July 2009)

 

Banks will be forced to take account of share market levels and the health of the economy when making provisions for bad loans under new rules being drawn up by the banking regulator (30 June 2009) http://www.theaustralian.news.com.au/business/story/0,28124,25709570-643,00.html

 

Madoff gets 150 years for $65bn fraud
Fraudster Bernard Madoff has been sentenced to 150 years behind bars - the maximum he could have faced - after swindling thousands of investors out of billions of dollars in Wall Street's biggest ever scam. The 71-year-old apologised to the victims of his $65 billion Ponzi scheme, many of whom gathered outside the New York court as he learnt his fate (29 June 2009)

 

BANKRUPTCY – appeal from dismissal of application to annul bankruptcy pursuant to s 153B Bankruptcy Act 1966 (Cth) – whether sequestration order ought not to have been made – whether any relevant change of circumstances to warrant annulment.

In the matter of Engels (Hurstville) Pty Ltd (in liq); application of Engel [2009] NSWSC 596

CORPORATIONS - reinstatement of deregistered corporation - standing of applicant - deregistered company was a shareholder in another company with substantial assets liquidator of that other company seek leave to distribute assets to the present applicant

CORPORATIONS - receivers, controllers and managers - duties and liabilities

s419A Corporations Act - whether agents for mortgagee in possession liable to pay rent and other amounts accruing under prior agreement - difficulty in identifying goods belonging to plaintiff - commingling of goods - significance of prior breach by company of a term of agreement [ whether agents for mortgagee should be excused from liability

TORTS – conversion - dealing with goods in manner inconsistent with owner's rights permitting use of goods by a third party under licence agreement - later sale of goods to third party - whether actual physical interference with goods necessary to establish conversion

 

In the matter of Chameleon Mining NL; Chameleon Mining NL v Atanaskovic Hartnell [2009] NSWSC 602 CORPORATIONS - winding up - statutory demand - whether demand can be withdrawn before last date for compliance - setting aside under s 459J(1)(b) for "some other reason" whether the court can take into account events after service of demand - whether, after service of demand, creditor is precluded from commencing proceedings for recovery of debt - whether statutory prohibition on commencing proceedings under legal profession legislation constitutes "some other reason" 

COSTS - where no full trial on merits - considerations relating to reasonableness of conduct of parties in a statutory demand case

 

INJUNCTION - Application by mortgagors to restrain a sale of properties - whether prospect of refinancing very likely - relevance of lateness of application - explanation for delay - discretionary matters and balance of convenience.

 

CORPORATIONS - court-ordered winding up - liquidator's power to register transfer of shares requirement for court's approval for transfer of shares under s 468(1) - whether approval may be granted nunc pro tunc - relevant considerations - liquidator's delegated power to distribute surplus to persons entitled to it - requirement of special leave - whether the court may grant special leave nunc pro tunc - relevant considerations