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Exposure Draft - Corporations Amendment Regulations 2011 (No. ) – Funded Class Actions

Date:

Wednesday, 27 July 2011

Content ID:

2104

Abstract:

The Assistant Treasurer and Minister for Financial Services and Superannuation has released for public consultation an exposure draft of related regulations to clarify that funded class actions, as well as similar arrangements, are not managed investment schemes (MIS) under section 9 of the Corporations Act 2001 (Corporations Act).

The Full Court of the Federal Court on 20 October 2009 in Brookfield Multiplex Limited v International Litigation Funding Partners Pte Ltd [2009] FCAFC 147 issued a judgement declaring that class actions are MIS as defined in the Corporations Act.

The decision would have significant implications for class actions, as their establishment and operation would become subject to the regulatory requirements in the Corporations Act applying to MIS.

In 2010, the Government approved regulations being made carving out funded class actions, as well as similar arrangements, from the definition of MIS in the Corporations Act. 

Making a submission

Interested parties are invited to comment on the exposure draft package. While submissions may be lodged electronically or by post, electronic lodgement is preferred. For accessibility reasons, please submit responses sent via email in a Word or RTF format. An additional PDF version may also be submitted.

All information (including name and address details) contained in submissions will be made available to the public on the Treasury website unless you indicate that you would like all or part of your submission to remain in confidence. Automatically generated confidentiality statements in emails do not suffice for this purpose. Respondents who would like part of their submission to remain in confidence should provide this information marked as such in a separate attachment. Legal requirements, such as those imposed by the Freedom of Information Act 1982, may affect the confidentiality of your submission.

Closing date for submissions: Friday, 12 August 2011

Address written submissions to:
The Manager
Governance and Insolvency Unit
Corporations and Capital Markets Division
The Treasury
Langton Crescent
PARKES ACT 2600

Email: classactions@treasury.gov.au

For enquiries, please call Timothy Beale on (02) 6263 2870.

Documents Available:


Acrobat (PDF) documents

 Acrobat (PDF)

Draft Regulations  140.44kb
Explanatory Commentary Draft Regulations  21.46kb

Microsoft Word (RTF) documents

 Microsoft Word (RTF)

Draft Regulations  452.26kb
Explanatory Commentary Draft Regulations  96.76kb

Related Items:

Submissions: Exposure Draft - Corporations Amendment Regulations 2011 (No. ) – Funded Class Actions - 26/08/2011

Treasury received six submissions in response to the consultation on an exposure draft of the Corporations Amendment Regulations 2011 (No. ) – Funded Class Actions. All of these submissions were public. The submissions are listed below and are accessible by selecting the author.

The opinions expressed in the submissions are those of the authors and do not necessarily reflect the views of the Government or the Treasury.

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