Finance Law of Australia

Financial Services Reform

A client is seeking legal advice as to how his business will be affected by the proposed changes in the Financial Services Reform Bill 2001. Is this Bill relevant to his business? What changes will he have to anticipate from this Bill?

The client is John Smith and is a director of a public company John Smith Pty Ltd. What would be the position if the company was a proprietary company?

Currently, the company issues shares and debentures.

The client is thinking about getting into the insurance and superannuation business. In addition, some of the other directors of the company are interested in raising monies by issuing units in a unit trust or running an alpaca farm or alternatively a film scheme.

Will the Bill affect any of these activities?

Does the company have to change the way it is incorporated? Will the company need to be licensed under the Bill?

What disclosure requirements will be required in relation to any of these current or proposed activities of the company? Are there different types of disclosure requirements that is dual disclosure regimes?

What about any potential offences and liability of the directors of this company?