| Senate Economics References Committee |
(PDF 21KB) |
| Abbreviations |
(PDF 19KB) |
| Preamble - Explanation—terms of reference |
(PDF 11KB) |
| Executive summary - Findings and recommendations |
(PDF 97KB) |
|
Tax incentive
Geared investments
Financial advisers and trust
Product producers
Liquidation
Future of agribusiness MIS
Enforcement
|
| Chapter 1 - Introduction |
(PDF 302KB) |
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Conduct of inquiry
Terms of Reference
Background to inquiry
Submissions
Confidential material
Scope and structure of report
Acknowledgements
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| Chapter 2 - Managed investment schemes |
(PDF 199KB) |
|
Structure
Agribusiness MIS
Figure 2.1: A typical MIS structure
Forestry MIS
Horticultural MIS
Agribusiness MIS collapses
Conclusion
|
| Chapter 3 - Human cost |
(PDF 40KB) |
|
Personal accounts
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| Chapter 4 - Taxation concessions |
(PDF 114KB) |
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Tax benefits as driver of investment
Significance of ATO rulings
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| Chapter 5 - Geared investment |
(PDF 165KB) |
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History of predatory lending
Borrowing for annual fees
Approval process—loan application forms
Irresponsible lending
Pressure selling
|
| Chapter 6 - Retail investors |
(PDF 71KB) |
|
Behavioural economics
Trust
|
| Chapter 7 - Financial advice and advisers |
(PDF 126KB) |
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Agribusiness and financial advice
Deficiencies in advice
Licensing requirements
Inappropriate advice
Commissions
Recent legislation
Holding financial advisers to account
Role of accountants
Conclusion
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| Chapter 8 - Education and culture |
(PDF 100KB) |
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Financial literacy
Future of Financial Advice Reforms
Financial advisers—education and training
Culture
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| Chapter 9 - Product developers and promoters |
(PDF 160KB) |
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Informed decision-making
Long standing concerns about disclosure
Prospectuses and product disclosure statements
Misunderstandings
Agribusiness PDS—scope for improvement
Context of information—oral advice, wealth seminars
Conclusion
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| Chapter 10 - General advice |
(PDF 106KB) |
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Regulations regarding the provision of general advice
Referral networks
Gatekeepers—research houses
Conclusion
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| Chapter 11 - Role of banks |
(PDF 175KB) |
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Banks and responsible lending
ANZ
Hardship provisions
Bendigo Bank
Pattern of poor lending practices
New credit laws
|
| Chapter 12 - Class actions and legal advice to investors |
(PDF 48KB) |
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Compound interest and mounting debt
Class action—advice not to repay
|
| Chapter 13 - Business model — commercial viability |
(PDF 177KB) |
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Reasons for collapses
Schemes' performance
Poor management
Ponzi-like schemes
Conclusion
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| Chapter 14 - Unsafe products |
(PDF 106KB) |
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Promoting and selling complex financial products
Suitability for retail investors
Product and product issuer regulation
Conclusion
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| Chapter 15 - Liquidation |
(PDF 118KB) |
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Complex arrangements
MIS in external administration
Replacement RE
Network of agreements and competing interests
Call for reform
Conclusion
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| Chapter 16 - Environmental and farming community concerns |
(PDF 1521KB) |
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Environmental and social consequences
Viability of schemes after liquidation and sale
Reforming the system
Conclusion
|
| Chapter 17 - Compensation |
(PDF 80KB) |
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Avenues for recompense
Advisers—professional indemnity insurance and bankruptcy
Compensation scheme
|
| Chapter 18 - Conclusion |
(PDF 93KB) |
|
ASIC
Criticism of ASIC
Enforcement
Committee findings and recommendations
|
| Senator Nick Xenophon—Additional Comments |
(PDF 35KB) |
|
Government
has been MISsing In Action: Time for a Compensation Scheme for MIS Victims
Recommendation
|
| Australian Greens—Dissenting Report |
(PDF 26KB) |
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Investors and incentives
Promoters and producers
|
| Appendix 1 - Submissions received |
(PDF 19KB) |
| Appendix 2 - Public Hearings and Witnesses |
(PDF 12KB) |
| Appendix 3 - CAMAC Managed Investment Schemes |
(PDF 29KB) |
|
Proposed key legislative reforms
Changing the RE of a viable scheme
Restructuring a financially stressed scheme
Winding up a scheme
Other matters
|