Proxy advice reforms ‘inoperable’, ‘misguided’: ISS 06 May 2021
One of the main institutional proxy advisers in Australia, has warned against the government’s new proposed restrictions for the sector, with fears independent research could drown in impossible restrictions.
Treasurer Josh Frydenberg recently declared proposed legislation for proxy advisers, aiming for more transparency around proxy advice.
The draft changes have suggestions such as requiring firms to have Australian Financial Services Licences (AFSLs) and to distribute their advice and research on firms they’re the subject of five days before their investor clients see it, as well as alert their clients of how to access company responses.
Reform aims to cut costs and simplify SMSFs
Trustees frustrated by excessive paperwork and expensive advice frameworks will be watching two government initiatives with great interest.
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There is growing momentum for financial services reform that could see the cost of administering a self-managed super fund fall, with federal Treasury and the Australian Securities and Investments Commission issuing independent consultation papers that could cut red tape and complexity.
Treasury has called for submissions to its consultation paper, Modernising Business Communications, which has the goal of “cutting business costs (including superannuation) and better reflecting the way Australians want to engage and communicate digitally”.
Litigation funding report a Christmas present for corporate criminals
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Litigation funders, plaintiff lawyers and federal Labor have rubbished a parliamentary report into litigation funding, accusing government MPs of giving corporations a green light to rip off customers and lie to investors.
Class Actions Australia spokesman and head of class actions at plaintiff law firm Slater & Gordon, Ben Hardwick, said the report was a Christmas present for corporate criminals .
Shadow attorney-general Mark Dreyfus accused government MPs of providing cover to government policy decisions.
Alex Ellinghausen
But company directors and defence lawyers say the recommendations are sensible, not before time and necessary to correct an imbalance in the legal marketplace.