Footnotes

Chapter 1 - Introduction

[1]        The full text of the Corporations Act 2001 is available at http://www.comlaw.gov.au/comlaw/management.nsf/lookupindexpagesbyid/IP200401854?OpenDocument (accessed on 17 September 2009).

[2]        The full text of the Corporations Act 2001 is available at http://www.comlaw.gov.au/comlaw/management.nsf/lookupindexpagesbyid/IP200401854?OpenDocument (accessed on 17 September 2009).

[3]        Submissions to the inquiry are available at the following link: http://www.aph.gov.au/senate/committee/corporations_ctte/fps/submissions/sublist.htm (accessed on 17 September 2009).

[4]        Transcripts of the committee's public hearings can be accessed at the following link: http://www.aph.gov.au/senate/committee/corporations_ctte/fps/hearings/index.htm (accessed on 17 September 2009).

Chapter 2 - Current regulation of financial products and services in Australia

[1]        ASIC, Submission 378, p. 4.

[2]        ASIC, Submission 378, pp. 4-5.

[3]        ASIC, Submission 378, p. 5.

[4]        ASIC, Submission 378, p. 18.

[5]        Sections 763B, 763C and 763D of the Corporations Act define these terms.

[6]        ASIC, Submission 378, p. 126.

[7]        ASIC, Submission 378, pp 125-126.

[8]        The compensation arrangements are to meet claims from the licensee's failure to meet their obligations under the Corporations Act, rather than for investment failure.

[9]        See Part 2, Division 2, Subdivision D of the ASIC Act.

[10]      ASIC, Regulatory Guide 175, 'Licensing: Financial product advisers – Conduct and disclosure', May 2009, p. 33.

[11]      ASIC, Regulatory Guide 175, 'Licensing: Financial product advisers – Conduct and disclosure', May 2009, p. 34.

[12]      ASIC, Submission 378, p. 129. See section 942B of the Corporations Act. Further information is available at ASIC, Regulatory Guide 175, 'Licensing: Financial product advisers – Conduct and disclosure', May 2009, pp 18-32.

[13]      ASIC, Submission 378, p. 132. See section 947B of the Corporations Act. Further information is available at ASIC, Regulatory Guide 175, 'Licensing: Financial product advisers – Conduct and disclosure', May 2009, pp 43-56.

[14]      ASIC, Regulatory Guide 146, ' Licensing: Training of financial product advisers', August 2008, p. 16.

[15]      ASIC, Regulatory Guide 146, ' Licensing: Training of financial product advisers', August 2008, p. 17.

[16]      ASIC, Regulatory Guide 146, ' Licensing: Training of financial product advisers', August 2008, p. 5.

[17]      ASIC, Press release, 'Updated compensation and insurance arrangements for licensees', 26 October 2009.

[18]      ASIC, Regulatory Guide 126, 'Compensation and insurance arrangements for AFS licensees', October 2009, p. 5. 

[19]      Corporations Legislation Amendment (Financial Services Modernisation) Bill 2009. Margin lending is subject to further discussion in Chapter Three in the context of Storm Financial. Chapter Six addresses the margin lending reforms covered briefly here in more detail. Securities lending, also covered under these reforms, is discussed in the context of Opes Prime in Chapter Four.

[20]      ASIC, Submission 378, p. 148.

[21]      ASIC, Submission 378, pp 158-159.

[22]      ASIC, Submission 378, pp 146-147.

[23]      ASIC, Submission 378, p. 101.

[24]      ASIC, Submission 378, pp 106-107.

[25]      ASIC, Submission 378, pp 108-109.

[26]      IBIS World Industry Report, Financial Planning and Investment Advice in Australia, May 2009, p. 7. 

[27]      ASIC, Submission 378, pp 109-110.

[28]      ASIC, Submission 378, pp 110-111.

[29]      ASIC, Submission 378, p. 111.

Chapter 3 - The collapse of Storm Financial

[1]        Mr Francis Grainer, Official Committee Hansard, Cairns, 1 September 2009, p. 48.

[2]        Ms Margaret McClean, Official Committee Hansard, Cairns, 1 September 2009, p. 89.

[3]        Mrs Jill Dixon, Official Committee Hansard, Townsville, 2 September, p. 54.

[4]        Mrs Kate Maccoll, Official Committee Hansard, Cairns, 1 September 2009, p. 86.

[5]        Mr Tony D'Aloisio, ASIC, Official Committee Hansard, Canberra, 25 February 2009, p. 183.

[6]        Mr David McCulloch, Official Committee Hansard, Townsville, 2 September 2009, p. 10.

[7]        Mr Gus Dalle Cort, Official Committee Hansard, Cairns, 1 September 2009, p. 4.

[8]        Mr David McCulloch, Official Committee Hansard, Townsville, 2 September 2009, p. 4.

[9]        Mr Gus Dalle Cort, Official Committee Hansard, Cairns, 1 September 2009, p. 2.

[10]      Mr Gus Dalle Cort, Official Committee Hansard, Cairns, 1 September 2009, p. 14.

[11]      Mr David McCulloch, Official Committee Hansard, Townsville, 2 September 2009, p. 7.

[12]      Mr David McCulloch, Official Committee Hansard, Townsville, 2 September 2009, p. 25.

[13]      Mr Ian Narev, CBA, Official Committee Hansard, Sydney, 4 September 2009, p. 92.

[14]      Mr David Cohen, CBA, Official Committee Hansard, Sydney, 4 September 2009, p. 93.

[15]      Mr Gus Dalle Cort, Official Committee Hansard, Cairns, 1 September 2009, p. 12.

[16]      Mr Gus Dalle Cort, Official Committee Hansard, Cairns, 1 September 2009, p. 12.

[17]      Mr Emmanuel Cassimatis, Official Committee Hansard, Brisbane, 3 September 2009, p. 3.

[18]      See http://www.theaustralian.news.com.au/business/story/0,,25307584-17044,00.html; accessed on 30 October 2009.

[19]      See http://www.abc.net.au/news/stories/2009/01/08/2461406.htm; accessed on 30 October 2009.

[20]      Mr Michael Davison, CPA Australia Ltd, Official Committee Hansard, Melbourne, 26 August 2009, p. 62.

[21]      Official Committee Hansard, Brisbane, 3 September 2009, pp. 5 – 6.

[22]      Mr Graham Anderson, Official Committee Hansard, Brisbane 3 September 2009, p. 71.

[23]      Mr Quentin Bates, Official Committee Hansard, Cairns, 1 September 2009, p37.

[24]      Mr Francis Grainer, Official Committee Hansard, Cairns, 1 September 2009, p. 60.

[25]      Mr Jack Dale, Official Committee Hansard, Cairns, 1 September 2009, p. 63.

[26]      Mrs Jill Dixon, Official Committee Hansard, Townsville, 2 September 2009, p. 54.

[27]      Mr Francis Grainer, Official Committee Hansard, Cairns, 1 September 2009, p. 51.

[28]      Jack and Frances Dale, Submission 121, p. 1.

[29]      Mrs Jill Dixon, Official Committee Hansard, Townsville, 2 September 2009, p. 55.

[30]      Mr Francis Grainer, Official Committee Hansard, Cairns, 1 September 2009, p. 58.

[31]      Ms Margaret McClean, Official Committee Hansard, Cairns, 1 September 2009, p. 91.

[32]      Mr Graham Hodges, ANZ, Official Committee Hansard, Melbourne, 26 August 2009, pp. 43 – 44.

[33]      Mr Matthew Comyn, CBA, Committee Hansard, Sydney, 4 September 2009, p. 62.

[34]      SICAG, Official Committee Hansard, Brisbane, 3 September 2009, pp. 69 – 70.

[35]      Mr Matthew Comyn, CBA, Committee Hansard, Sydney, 4 September 2009, p. 62.

[36]      Mr Ralph Norris, CBA, Official Committee Hansard, Canberra, 28 October 2009, p. 27.

[37]      CBA, Submission 357, p. 1.

[38]      Official Committee Hansard, Canberra, 16 September 2009, pp. 32 – 33.

[39]      Official Committee Hansard, Canberra, 16 September 2009, pp. 33 – 34.

[40]      Mrs Carmela Richards, Official Committee Hansard, Townsville, 2 September 2009, p. 27.

[41]      Mrs Kristy Devney, Official Committee Hansard, Townsville, 2 September 2009, p. 35.

[42]      Mr Ralph Norris, CBA, Official Committee Hansard, Canberra, 28 October 2009, p. 36.

[43]      Mr Quentin Bates, Official Committee Hansard, Cairns, 1 September 2009, pp. 38 – 39.

[44]      Mr Gus Dalle Cort, Official Committee Hansard, Cairns, 1 September 2009, p. 25.

[45]      Mrs Carmela Richards, Official Committee Hansard, Townsville, 2 September 2009, p. 27.

[46]      Mrs Carmela Richards, Official Committee Hansard, Townsville, 2 September 2009, p. 30.

[47]      Mr Quentin Bates, Official Committee Hansard, Cairns, 1 September 2009, p. 35.

[48]      See, for example, Macquarie Group Limited, Submission 396, pp. 13 – 14.

[49]      Mr Matthew Comyn, CBA, Official Committee Hansard, Canberra, 28 October 2009, p. 29.

[50]      CBA, Submission 357, p. 2.

[51]      Mr Andrew Jackson, Official Committee Hansard, Townsville, 2 September 2009, p. 30

[52]      Mr Jack Dale, Official Committee Hansard, Cairns, 1 September 2009, p. 75.

[53]      Mr David McCulloch, Official Committee Hansard, Townsville, 2 September 2009, p. 8.

[54]      Mr David McCulloch, Official Committee Hansard, Townsville, 2 September 2009, pp. 6 – 7.

[55]      Mr Gus Dalle Cort, Submission 153, p. 14.

[56]      Mr Gus Dalle Cort, Official Committee Hansard, Cairns, 1 September 2009, p. 5.

[57]      Mrs Carmela Richards, Official Committee Hansard, Cairns, 1 September 2009, p. 43.

[58]      Mr Emmanuel Cassimatis, Official Committee Hansard, Brisbane, 3 September 2009, p. 3.

[59]      Mr David McCulloch, Official Committee Hansard, Townsville, 2 September 2009, p. 11.

[60]      Mrs Carmela Richards, Official Committee Hansard, Townsville, 2 September 2009, p. 28.

[61]      Mrs Carmela Richards and Ms Kristy Devney, Submission 386, p.6.

[62]      Mr John Fuller, Submission 281, p. 2.

[63]      Mr Ian Narev, CBA, Official Committee Hansard, Sydney, 4 September 2009, p. 65.

[64]      Mr Ian Narev, CBA, Official Committee Hansard, Sydney, 4 September 2009, p. 65.

[65]      Mr David Cohen, CBA, Official Committee Hansard, Sydney, 4 September 2009, p. 75.

[66]      Mr Ian Narev, CBA, Official Committee Hansard, Canberra, 28 October 2009, p. 33.

[67]      Mr David Cohen, CBA, Official Committee Hansard, Sydney, 4 September 2009, p. 75.

[68]      Mr David Cohen, CBA, Official Committee Hansard, Sydney, 4 September 2009, p. 76.

[69]      Mr Ian Narev, CBA, Official Committee Hansard, Canberra, 28 October 2009, p. 33.

[70]      Mr David Cohen, CBA, Official Committee Hansard, Canberra, 28 October 2009, p. 34.

[71]      Mr Richard Sheppard, Macquarie Group Ltd, Official Committee Hansard, Canberra, 28 October 2009, p. 3.

[72]      Mr Richard Sheppard, Macquarie Group Ltd, Official Committee Hansard, Canberra, 28 October 2009, p. 3.

[73]      Official Committee Hansard, Canberra, 28 October 2009, p. 30.

[74]      Official Committee Hansard, Canberra, 28 October 2009.

[75]      Mr Ralph Norris, CBA, Official Committee Hansard, Canberra, 28 October 2009, p. 25.

[76]      Mr Francis Grainer, Official Committee Hansard, Cairns, 1 September 2009, p. 49.

[77]      Ms Jo-Anne Bloch, Financial Planning Association, Official Committee Hansard, Canberra, 28 August 2009, p. 27.

[78]      Mr Michael Lim, Treasury, Official Committee Hansard, Canberra, 28 August 2009, p. 15.

[79]      See http://www.commbank.com.au/about-us/news/media-releases/2009/170609-news-storm-financial.aspx; accessed on 30 October 2009.

[80]      Mr David Cohen, CBA, Official Committee Hansard, Sydney, 4 September 2009, p.57.

[81]      Mr David Cohen, CBA, Official Committee Hansard, Sydney, 4 September 2009, p. 58.

[82]      Mr David Cohen, CBA, Official Committee Hansard, Sydney, 4 September 2009, p.58.

[83]      Mr Ralph Norris, CBA, Official Committee Hansard, Canberra, 28 October 2009, p. 24.

[84]      Mr Richard Sheppard, Macquarie Bank Ltd, Official Committee Hansard, Canberra, 28 October 2009, p. 3.

[85]      Mr David Liddy, Bank of Queensland, Official Committee Hansard, Canberra, 16 September 2009, p. 29.

[86]      Mr David Liddy, Bank of Queensland, Official Committee Hansard, Canberra, 16 September 2009, p. 30.

[87]      Mr Steve Tucker, MLC Limited, Official Committee Hansard, Melbourne, 26 August 2009, p. 2.

[88]      Mr Graham Hodges, ANZ, Official Committee Hansard, Melbourne, 26 August 2009, p. 35.

[89]      Mr Ralph Norris, CBA, Official Committee Hansard, Canberra, 28 October 2009, p. 25.

[90]      Mr Tony D'Aloisio, ASIC, Official Committee Hansard, Canberra, 16 September 2009, pp. 2‑ 3.

[91]      Mr Tony D'Aloisio, ASIC, Official Committee Hansard, Canberra, 16 September 2009, pp.

2 ‑3.

[92]      Mr Tony D'Aloisio, ASIC, Official Committee Hansard, Canberra, 16 September 2009, pp.

2 ‑3.

[93]      Mr Ralph Norris, CBA, Official Committee Hansard, Canberra, 28 October 2009, p. 25.

Chapter 4 - The collapse of Opes Prime

[1]        Mr Robert Fowler, Submission 120, p. 8.

[2]        ANZ, Submission 379, p. 24.

[3]        See the following submissions for examples: Submission 93, Submission 94, Submission 95, Submission 97, Submission 98, Submission 120, Submission 197, and Submission 271.

[4]        ANZ, Submission 379, p. 22.

[5]        As noted by Justice Finkelstein in Beconwood Securities Pty Ltd v Australia and New Zealand Banking Group Limited [2008] FCA 594, at paragraph 14, 'The term "securities lending" under these agreements is factually incorrect. The transaction that is referred to as "lending" is in terms an outright disposal of the securities lent, linked to a subsequent acquisition of equivalent securities. In other words the agreements provide that title to the securities on loan, as well as to any collateral that is received by the lender, passes from one party to the other. On the other hand, the economic benefits of ownership are "manufactured" back to the lender by the terms of the securities loan agreements.'

[6]        This understanding of the AMSLA is supported by Justice Finkelstein's judgement; see Beconwood Securities Pty Ltd v Australia and New Zealand Banking Group Limited [2008] FCA 594.

[7]        Michael West, 'Scramble of the despondent and the damned', Sydney Morning Herald, 2 April 2008.

[8]        Professor Ian Ramsay, 'Ope Prime: who understood?', The Age, 1 April 2008.

[9]        ASIC, Submission 378, p. 121.

[10]      Please see Submission 379, available online at the following link: http://www.aph.gov.au/senate/committee/corporations_ctte/fps/submissions/sub379.pdf  .

[11]      ANZ, Submission 379, p. 25.

[12]      See ANZ, Submission 379, pp. 25 – 26. See also: Katrina Nicholas and Andrew White, 'The Man Who Sank Opes Prime', Australian Financial Review, 12 April 2008.

[13]      ASIC, Submission 378, p. 6.

[14]      ANZ, Submission 379, p. 26.

[15]      ANZ, Submission 379, p. 26.

[16]      ANZ, Submission 379, p. 26.

[17]      See Beconwood Securities Pty Ltd v Australia and New Zealand Banking Group Limited [2008] FCA 594.

[18]      Patrick Durkin, 'Hundreds left angry as Opes Prime is wound up', Australian Financial Review, 16 October 2008.

[19]      Name withheld, Submission 95, p. 1.

[20]      Name withheld, Submission 97, p. 1.

[21]      Mr Patrick Loughnan, Submission 271, p. 1.

[22]      Name withheld, Submission 97, p. 1.

[23]      Name withheld, Submission 197, pp. 1-2.

[24]      Mr Robert Fowler, Submission 120, p. 3.

[25]      Name withheld, Submission 93, p. 1.

[26]      Name withheld, Submission 94, p. 1.

[27]      Name withheld, Submission 197, p. 3.

[28]      Name withheld, Submission 98, p. 1; see also comments by Mr Robert Fowler, Submission 120, p. 1.

[29]      ANZ, Submission 379, p. 2.

[30]      ANZ, Submission 379, p. 2.

[31]      Mr Graham Hodges, ANZ Banking Group, Official Committee Hansard, Melbourne, 26 August 2009, p. 35.

[32]      ANZ Banking Group, Official Committee Hansard, Melbourne, 26 August 2009, p. 37.

[33]      Mr Bob Santamaria, ANZ Banking Group, Official Committee Hansard, Melbourne, 26 August 2009, p. 50.

[34]      Mr Bob Santamaria, ANZ Banking Group, Official Committee Hansard, Melbourne, 26 August 2009, p. 38.

[35]      ANZ, Submission 379, p. 24.

[36]      Mr Graham Hodges, ANZ Banking Group, Official Committee Hansard, Melbourne, 26 August 2009, p. 35.

[37]      The Securities Lending Review is also published as part of the ANZ submission to this parliamentary inquiry – see http://www.aph.gov.au/senate/committee/corporations_ctte/fps/submissions/sub379.pdf

[38]      Mr Graham Hodges, ANZ Banking Group, Official Committee Hansard, Melbourne, 26 August 2009, p. 37.

[39]      Mr Bob Santamaria, ANZ Banking Group, Official Committee Hansard, Melbourne, 26 August 2009, p. 40.

[40]      Mr Graham Hodges, ANZ Banking Group, Official Committee Hansard, Melbourne, 26 August 2009, p. 36.

[41]      Mr Graham Hodges, ANZ Banking Group, Official Committee Hansard, Melbourne, 26 August 2009, p. 48.

[42]      Mr Bob Santamaria, ANZ Banking Group, Official Committee Hansard, Melbourne, 26 August 2009, p. 39.

[43]      ANZ, Submission 379, p. 2.

[44]      Mr Graham Hodges, ANZ Banking Group, Official Committee Hansard, Melbourne, 26 August 2009, p. 42.

[45]      Mr Bob Santamaria, ANZ Banking Group, Official Committee Hansard, Melbourne, 26 August 2009, pp. 37-38.

[46]      Mr Tony D'Aloisio, ASIC, Official Committee Hansard, Canberra, 24 June 2009, p. 3.

[47]      ASIC Media Release 09-37, 'Opes Prime: proposed settlement and ANZ enforceable undertaking', 6 March 2009.

[48]      ASIC, Submission 378, p. 177.

[49]      ASIC Media Release 09-37, 'Opes Prime: proposed settlement and ANZ enforceable undertaking', 6 March 2009; and 09-135, 'Opes Prime schemes of arrangement approved', 4 August 2009.

[50]      09-135, 'Opes Prime schemes of arrangement approved', 4 August 2009.

[51]      ASIC Media Release 09-135, 'Opes Prime schemes of arrangement approved', 4 August 2009.

[52]      'Bid to thwart Opes deal', The Age, 28 August 2009; 'With his life savings up in smoke, retired investor faces hefty legal bill', The Age, 4 September 2009; 'Court rejects appeal against Opes deal', Australian Financial Review, 4 September 2009.

[53]      ASIC Media Release 09-37, 'Opes Prime: proposed settlement and ANZ enforceable undertaking', 6 March 2009; and 09-135, 'Opes Prime schemes of arrangement approved', 4 August 2009.

[54]      Name withheld, Submission 197, p. 1.

[55]      Name withheld, Submission 197, p. 1.

[56]      Name withheld, Submission 197, p. 1.

[57]      Name withheld, Submission 197, p. 2.

Chapter 5 - Issues raised during the inquiry

[1]        ASIC, Submission 378, p. 48.

[2]        ASIC, Submission 378, p. 38. See also Industry Super Network, Submission 380, p. 4 and p. 8.

[3]        MLC, Official Committee Hansard, Melbourne, 26 August 2009, p. 4

[4]        ACI, Submission 397, p. 5.

[5]        ICAA, Submission 363, p. 6.

[6]        Industry Super Network, Submission 380, p. 11

[7]        FPA, Official Committee Hansard, Canberra, 28 August 2009, p. 47.

[8]        BFPPG, Submission 251, p. 12.

[9]        ASIC, Submission 378, p. 20.

[10]      MLC, Official Committee Hansard, Melbourne, 26 August 2009, pp. 14-15.

[11]      CPA Australia, Official Committee Hansard, Melbourne, 26 August 2009, p. 65.

[12]      Mr Peter Worcester, Official Committee Hansard, Melbourne, 26 August 2009, p. 98.

[13]      ASIC, Official Committee Hansard, Canberra, 16 September 2009, p. 7.

[14]      ASIC, Submission 378, p. 11.

[15]      ACI, Submission 397, p. 5.

[16]      Soft dollar incentives refer to non-monetary rewards such as holidays, tickets to sporting events, golf days etc.

[17]      ASIC, Submission 378, p. 50.

[18]      Industry Super Network, Submission 380, p. 8.

[19]      Industry Super Network, Submission 380, p. 9.

[20]      Q Invest, Submission 374, p. iii.

[21]      CHOICE, Submission 361, p. 9.

[22]      See for example, ING Australia, Submission 383, p. 6; AFA, Submission 344, pp. 8-9.

[23]      CBA, Submission 357, pp. 6-7.

[24]      Professional Investment Services, Official Committee Hansard, Sydney, 4 September 2009, p. 112.

[25]      AXA, Submission 385, p. 10.

[26]      Industry Super Network, Submission 380, pp. 4-5.

[27]      ASIC, Submission 378, pp. 38-39.

[28]      ASIC, Submission 378, p. 39.

[29]      BFPPG, Submission 251, p. 6.

[30]      BFPPG, Submission 251, p. 9.

[31]      ACI, Submission 397, p. 5.

[32]      IFSA, Submission 317, p. 21.

[33]      ING Australia, Submission 383, p. 3.

[34]      AMP, Submission 367, p. 2.

[35]      Guardian Financial Planning, Official Committee Hansard, Melbourne, 26 August 2009, p. 87.

[36]      BFPPG, Submission 251, p. 11.

[37]      BFPPG, Submission 251, p. 12.

[38]      ASIC, Submission 378, pp 58-59.

[39]      FPA, Official Committee Hansard, Canberra, 28 August 2009, pp 40-41.

[40]      Argyle Lawyers, Official Committee Hansard, Melbourne, 26 August 2009, p. 112.

[41]      BFPPG, Submission 251, p. 14.

[42]      BFPPG, Submission 251, p. 18.

[43]      Argyle Lawyers, Official Committee Hansard, Melbourne, 26 August 2009, p. 108.

[44]      ASIC, Submission 378, p. 51.

[45]      ASIC, Official Committee Hansard, Canberra, 16 September 2009, pp. 15-16.

[46]      ASIC, Official Committee Hansard, Canberra, 16 September 2009, p. 16.

[47]      ASIC, Submission 378, p. 38.

[48]      CHOICE, Official Committee Hansard, Sydney, 4 September 2009, p. 98.

[49]      Accounting Professional and Ethical Standards Board, Official Committee Hansard, Melbourne, 26 August 2009, p. 73.

[50]      ACI, Submission 397, p. 6.

[51]      MLC, Official Committee Hansard, Melbourne, 26 August 2009, pp 5-6.

[52]      MLC, Official Committee Hansard, Melbourne, 26 August 2009, pp 4-5.

[53]      ASIC, Submission 378, p. 39.

[54]      ASIC, Official Committee Hansard, Canberra, 16 September 2009, p. 10.

[55]      Industry Super Network, Submission 380, p. 17.

[56]      Joint Parliamentary Committee on Corporations and Financial Services, Inquiry into aspects of agribusiness managed investment schemes, September 2009, pp 49-51.

[57]      Joint Parliamentary Committee on Corporations and Financial Services, Inquiry into aspects of agribusiness managed investment schemes, September 2009, pp 49-51.

[58]      ICAA, Official Committee Hansard, Sydney, 4 September 2009, p. 5.

[59]      ICAA, Submission 363, p. 6.

[60]      AFA, Submission 344, p. 12.

[61]      ING Australia, Submission 383, p. 6.

[62]      FOS, Official Committee Hansard, Melbourne, 26 August 2009, p. 27.

[63]      AMP, Submission 367, p. 7.

[64]      AMP, Submission 367, p. 7.

[65]      Argyle Lawyers, Official Committee Hansard, Melbourne, 26 August 2009, p. 108.

[66]      AXA, Submission 385, p. 20.

[67]      ASIC, Official Committee Hansard, Canberra, 16 September 2009, p. 3.

[68]      ASIC, Submission 378, p. 26.

[69]      FPA, Official Committee Hansard, Canberra, 28 August 2009, p. 34.

[70]      BFPPG, Submission 251, p. 21.

[71]      ASIC, Submission 378, pp 87-88.

[72]      ASIC, Submission 378, p. 88.

[73]      ASIC, Submission 378, p. 89.

[74]      ASIC, Submission 378, p. 89.

[75]      ASIC, Submission 378, p. 83.

[76]      Insurance Council of Australia, Official Committee Hansard, Canberra, 28 August 2009, p. 78.

[77]      ACI, Submission 397, p. 11.

[78]      AMP, Submission 367, p. 11.

[79]      Maurice Blackburn Lawyers, Submission 399, pp 2-3.

[80]      Maurice Blackburn Lawyers, Submission 399, p. 3.

[81]      AFA, Submission 344, p. 13.

[82]      Insurance Council of Australia, Official Committee Hansard, Canberra, 28 August 2009, p. 74.

[83]      ASIC, Submission 378, pp 83-84.

[84]      Q Invest, Submission 374, p. viii.

[85]      FPA, Official Committee Hansard, Canberra, 28 August 2009, p. 27.

[86]      AFA, Official Committee Hansard, Sydney, 4 September 2009, p. 34.

[87]      CPA Australia, Official Committee Hansard, Melbourne, 26 August 2009, p. 62.

[88]      AXA, Submission 385, p. 4.

[89]      Professional Investment Services, Official Committee Hansard, Sydney, 4 September 2009, p. 111.

[90]      Professional Investment Services, Official Committee Hansard, Sydney, 4 September 2009, p. 111.

[91]      Guardian Financial Planning, Official Committee Hansard, Melbourne, 26 August 2009, p. 86.

[92]      Guardian Financial Planning, Official Committee Hansard, Melbourne, 26 August 2009, p. 87.

[93]      IFSA, Official Committee Hansard, Canberra, 28 August 2009, p. 53.

[94]      CPA Australia, Official Committee Hansard, Melbourne, 26 August 2009, p. 62.

[95]      CPA Australia, Official Committee Hansard, Melbourne, 26 August 2009, p. 68.

[96]      ICAA, Submission 363, p. 13.

[97]      Q Invest, Submission 374, p. ii.

[98]      Q Invest, Submission 374, p. viii.

[99]      IFSA, Official Committee Hansard, Canberra, 28 August 2009, p. 50.

[100]    ASIC, Submission 378, p. 20.

[101]    ASIC, Submission 378, pp 41-42.

[102]    SDIA, Official Committee Hansard, Canberra, 28 August 2009, p. 66 and p. 70.

[103]    BFPPG, Submission 251, p. 22.

[104]    ASIC, Submission 378, p. 61.

[105]    ASIC, Submission 378, pp 75-76.

[106]    ASIC, Submission 378, p. 76.

[107]    ASIC, Submission 378, p. 77.

[108]    IFSA, Official Committee Hansard, Canberra, 28 August 2009, p. 57.

[109]    IFSA, Submission 317, p. 27.

[110]    MLC, Official Committee Hansard, Melbourne, 26 August 2009, p. 12.

[111]    FPA, Official Committee Hansard, Canberra, 28 August 2009, p. 45.

[112]    ICAA, Official Committee Hansard, Sydney, 4 September 2009, p. 12.

[113]    AFA, Official Committee Hansard, Sydney, 4 September 2009, p. 30.

Chapter 6 - Suggestions for regulatory reform

[1]        ASIC, Submission 378, p. 43.

[2]        ASIC, Official Committee Hansard, Canberra, 16 September 2009, p. 10.

[3]        ASIC, Submission 378, p. 44.

[4]        Professional Investment Services, Official Committee Hansard, Sydney, 4 September 2009, p. 113.

[5]        Trustee Corporations Association of Australia, Official Committee Hansard, Sydney, 4 September 2009, p. 21.

[6]        Industry Super Network, Submission 380, p. 14.

[7]        Industry Super Network, Submission 380, p. 14.

[8]        Industry Super Network, Submission 380, p. 15.

[9]        ACI, Submission 397, p. 5.

[10]      FPA, Official Committee Hansard, Canberra, 28 August 2009, p. 34.

[11]      AFA, Official Committee Hansard, Sydney, 4 September 2009, p. 33.

[12]      Treasury, Official Committee Hansard, Canberra, 28 August 2009, p. 19.

[13]      ASIC, Submission 378, p. 47.

[14]      Treasury, Official Committee Hansard, Canberra, 28 August 2009, p. 8.

[15]      Treasury, Official Committee Hansard, Canberra, 28 August 2009, p. 8.

[16]      ICAA, Official Committee Hansard, Sydney, 4 September 2009, p. 11.

[17]      AMP, Submission 367, p. 12.

[18]      IFSA, Submission 317, p. 23.  

[19]      IFSA, Submission 317, pp 29-30.

[20]      AXA, Submission 385, p. 16.

[21]      CPA Australia, Submission 311, p. 5.

[22]      CPA Australia, Submission 311, p. 6.

[23]      CPA Australia, Submission 311, pp 7-8.

[24]      CPA Australia, Submission 311, p. 7.

[25]      CPA Australia, Official Committee Hansard, Melbourne, 26 August 2009, p. 64.

[26]      CBA, Submission 357, p. 8.

[27]      ICAA, Submission 363, p. 13.

[28]      ACI, Submission 397, p. 4.

[29]      MLC, Official Committee Hansard, Melbourne, 26 August 2009, pp 7-8.

[30]      Mr Peter Worcester, Official Committee Hansard, Melbourne, 26 August 2009, p. 102.

[31]      BFPPG, Submission 251, p. 15.

[32]      Commercial Law Association of Australia, Submission 389, p. 3.

[33]      ICAA, Submission 363, p. 11.

[34]      ASIC, Submission 378, p. 62.

[35]      ASIC, Submission 378, pp 62-63.

[36]      Treasury, Official Committee Hansard, Canberra, 28 August 2009, p. 21.

[37]      ASIC, Submission 378, p. 45.

[38]      Institute of Actuaries of Australia, Submission 319, p. 5.

[39]      Worcester and Resnik, Submission 293, p. 3.

[40]      IFSA, Submission 317, p. 25.

[41]      ACI, Submission 397, p. 9.

[42]      ASIC, Submission 378, p. 53.

[43]      ASIC, Submission 378, p. 54.

[44]      See for example Strategy First, Submission 178, p. 11; Symes Warne and Associates, Submission 169, p. 3.

[45]      CHOICE, Official Committee Hansard, Sydney, 4 September 2009, p. 99.

[46]      Quantum Financial Services, Official Committee Hansard, Sydney, 4 September 2009, p. 44.

[47]      MLC, Official Committee Hansard, Melbourne, 26 August 2009, p. 7; Axiom Wealth, Submission 394, p. 4; ACI, Submission 397, p. 6 and p. 4;

[48]      ICAA, Submission 363, p. 8.

[49]      ICAA, Submission 363, p. 8.

[50]      Treasury, Official Committee Hansard, Canberra, 28 August 2009, p. 9.

[51]      BFBPG, Submission 251, p. 8.

[52]      MLC, Official Committee Hansard, Melbourne, 26 August 2009, p. 10.

[53]      IFSA, Official Committee Hansard, Canberra, 28 August 2009, p. 57.

[54]      Professional Investment Services, Official Committee Hansard, Sydney, 4 September 2009, pp 114-115.

[55]      Professional Investment Services, Submission 336, p. 12.

[56]      Guardian Financial Planning, Official Committee Hansard, Melbourne, 26 August 2009, p. 88.

[57]      ING Australia, Submission 383, p. 5.  

[58]      AFA, Submission 344, p. 8.

[59]      AFA, Submission 344, p. 9.

[60]      Axiom Wealth, Submission 394, p. 7.

[61]      Mr Dean Glyn-Evans, Submission 384, p. 3.

[62]      Mr Dean Glyn-Evans, Submission 384, p. 4.

[63]      Mr Robert Brown, Submission 342, p. 5.

[64]      Institute of Actuaries of Australia, Official Committee Hansard, Canberra, 28 August 2009, p. 84.

[65]      Institute of Actuaries of Australia, Official Committee Hansard, Canberra, 28 August 2009, p. 85.

[66]      CHOICE, Official Committee Hansard, Sydney, 4 September 2009, p. 105.

[67]      ASIC, Submission 378, p. 54.

[68]      Treasury, Official Committee Hansard, Canberra, 28 August 2009, p. 22.

[69]      MLC, Submission 346, pp 31-32.

[70]      National Insurance Brokers Association of Australia, Submission 314, p. 2.

[71]      AFA, Submission 344, pp 8-9.

[72]      Quantum Financial Services, Submission 56, p. 15.

[73]      FPA, Official Committee Hansard, Canberra, 28 August 2009, p. 31.

[74]      FPA, Official Committee Hansard, Canberra, 28 August 2009, pp 31-32.

[75]      MLC, Official Committee Hansard, Melbourne, 26 August 2009, p. 11.

[76]      Axiom Wealth, Submission 394, p. 3.

[77]      Axiom Wealth, Submission 394, p. 7.

[78]      ASIC, Submission 378, p. 50.

[79]      CHOICE, Official Committee Hansard, Sydney, 4 September 2009, pp 98-99.

[80]      Mr Robert Brown, Submission 342, p. 4.

[81]      Q Invest, Submission 374, p. iv.

[82]      Industry Super Network, Submission 380, p. 18.

[83]      ICAA, Official Committee Hansard, Sydney, 4 September 2009, p. 6.

[84]      BFPPG, Submission 251, p. 17.

[85]      Q Invest, Submission 374, p. ix.

[86]      CHOICE, Official Committee Hansard, Sydney, 4 September 2009, p. 110; Axiom Wealth, Submission 394, p. 3; AXA, Submission 385, p. 12; Industry Super Network, Submission 380, p. 15; Strategy First Financial Planning, Submission 178, p. 14; MLC, Submission 346, pp 33-34.

[87]      Strategy First Financial Planning, Submission 178, pp 8-9.

[88]      MLC, Submission 346, p. 3.

[89]      MLC, Official Committee Hansard, Melbourne, 26 August 2009, p. 7.

[90]      MLC, Official Committee Hansard, Melbourne, 26 August 2009, p. 6.

[91]      CPA Australia, Official Committee Hansard, Melbourne, 26 August 2009, p. 66.

[92]      CPA Australia, Official Committee Hansard, Melbourne, 26 August 2009, p. 67.

[93]      ICAA, Submission 363, p. 7.

[94]      MLC, Official Committee Hansard, Melbourne, 26 August 2009, p. 13.

[95]      Professional Investment Services, Submission 336, p. 18.

[96]      Argyle Lawyers, Official Committee Hansard, Melbourne, 26 August 2009, p. 108.

[97]      Guardian Financial Planning, Official Committee Hansard, Melbourne, 26 August 2009, p. 91.

[98]      IFSA, Official Committee Hansard, Canberra, 28 August 2009, p. 56.

[99]      ICAA, Official Committee Hansard, Sydney, 4 September 2009, p. 12.

[100]    Professional Investment Services, Submission 336, p. 18.

[101]    FPA, Official Committee Hansard, Canberra, 28 August 2009, p. 35.

[102]    IFSA, Submission 317, pp 33-34.

[103]    Treasury, Official Committee Hansard, Canberra, 28 August 2009, p. 11.

[104]    ASIC, Submission 378, p. 42.

[105]    ASIC, Official Committee Hansard, Canberra, 16 September 2009, p. 18.

[106]    IFSA, Submission 317, p. 14.

[107]    AXA, Submission 385, pp 20-21.

[108]    AXA, Submission 385, p. 21.

[109]    ASIC, Submission 378, pp 30-31. See sections 913B and 915C of the Corporations Act.

[110]    MLC, Submission 346, p. 3 and p. 16.

[111]    AMP, Submission 367, p. 10.

[112]    AXA, Submission 385, p. 22.

[113]    BFPPG, Submission 251, p. 13.

[114]    ASIC, Submission 378, p. 30.

[115]    Joint Parliamentary Committee on Corporations and Financial Services, Inquiry into aspects of agribusiness managed investment schemes, September 2009, p. 38.

[116]    Joint Parliamentary Committee on Corporations and Financial Services, Inquiry into aspects of agribusiness managed investment schemes, September 2009, p. 47.

[117]    Mr Benjamin Hancock, Submission 308, p. 3.

[118]    Mr Benjamin Hancock, Submission 308, p. 3.

[119]    Mr Ian Bailey, Submission 112, p. 3.

[120]    Mr Bruce Baker, Supplementary Submission 15g, p. 8.

[121]    FOS, Official Committee Hansard, Melbourne, 26 August 2009, p. 33.

[122]    Argyle Lawyers, Submission 322, p. 8.

[123]    ASIC, Submission 378, p. 31.

[124]    SDIA, Official Committee Hansard, Canberra, 28 August 2009, pp 61-62.

[125]    FPA, Official Committee Hansard, Canberra, 28 August 2009, p. 34.

[126]    ACI, Submission 397, p. 3.

[127]    AXA, Submission 385, p. 16.

[128]    ING Australia, Submission 383, p. 6.

[129]    BFPPG, Submission 251, p. 21.

[130]    BFPPG, Submission 251, p. 19.

[131]    Quantum Financial Services, Submission 56, p. 32.

[132]    Quantum Financial Services, Submission 56, p. 21 and p. 32.

[133]    Mr Bruce Baker, Submission 15, p. 6.

[134]    Treasury, Official Committee Hansard, Canberra, 28 August 2009, p. 17.

[135]    Treasury, Official Committee Hansard, Canberra, 28 August 2009, p. 17.

[136]    Accounting Professional and Ethical Standards Board, Official Committee Hansard, Melbourne, 26 August 2009, p. 73.

[137]    Accounting Professional and Ethical Standards Board, Official Committee Hansard, Melbourne, 26 August 2009, p. 77.

[138]    Corporations Legislation Amendment (Financial Services Modernisation) Bill 2009. The amendments cover both standard margin loans and securities lending agreements. 

[139]    Corporations Legislation Amendment (Financial Services Modernisation) Bill 2009, Explanatory Memorandum, p. 14.

[140]    Corporations Legislation Amendment (Financial Services Modernisation) Bill 2009, Explanatory Memorandum, p. 14.

[141]    ASIC, Submission 378, p. 92.

[142]    CBA, Proof Committee Hansard, Canberra, 28 October 2009, p. 45.

[143]    Mr Peter Worcester, Official Committee Hansard, Melbourne, 26 August 2009, p. 96.

[144]    Institute of Actuaries in Australia, Official Committee Hansard, Canberra, 28 August 2009, p. 87.

[145]    Commercial Law Association of Australia, Submission 389, p. 4.

[146]    ASIC, Submission 378, p. 92.

[147]    ASIC, Submission 378, pp 85-86.

[148]    ASIC, Submission 378, p. 86.

[149]    CHOICE, Official Committee Hansard, Sydney, 4 September 2009, p. 99.

[150]    FOS, Official Committee Hansard, Melbourne, 26 August 2009, p. 25.

[151]    Professional Financial Solutions, Proposal to Establish a Financial Services Compensation Scheme, October 2009. Provided as additional information to the committee by FOS. 

[152]    Treasury, Official Committee Hansard, Canberra, 28 August 2009, p. 24.

[153]    SDIA, Official Committee Hansard, Canberra, 28 August 2009, p. 61.

[154]    Insurance Council of Australia, Official Committee Hansard, Canberra, 28 August 2009, p. 73.

[155]    Professional Investment Services, Official Committee Hansard, Sydney, 4 September 2009, p. 112.

[156]    Maurice Blackburn Lawyers, Submission 399, pp 5-6.

Appendix 3 - Answers to questions taken on notice

[1]        According to the AFA’s corporate profile, 26% of members hold an AFSL. 74% of members are part of a larger AFSL and include individual members.

[2]        IFSA also offers supporting membership to companies involved in the retail funds management and life industry in a service capacity, e.g. legal and accounting firms, asset consultants and information technology providers.

[3]        The FPA also provided some membership data to the PJC at the hearing of the Inquiry into Agribusiness Managed Investment Schemes on 15 July 2009. See pp 38 and 45 of the transcript of the hearing: http://www.aph.gov.au/hansard/joint/commttee/J12132.pdf.

[4]        3% of respondents spoke an Asian language (other than Cantonese, Mandarin and Vietnamese) and 3% of respondents spoke a European language (other than Spanish, Greek, Italian and German).

[5]        These assumptions are based on an analysis of our data over the past 2½ years.  This data indicates that we made 78 awards which were not paid to the client due to the insolvency of the licensee.  Based on anecdotal evidence there were a further 70 unpaid claims, and the FOS receives only about one third of the total claims. 

[6]        It assumes that we would provide, at a fee, space within the existing FOS premises and essential support services.

[7]        For the first six months of the compensation scheme’s operation, it is assumed that the compensation scheme would employ a Chief Executive Officer and a core staff of six, and includes the Board expenses.