UPDATE: Securities Act non-compliance - the legislators step in

In the Spring 2003 issue of Financial Services Quarterly, we reported on breaches of the Securities Act by certain Australian Registered Managed Investment Schemes.

Commerce Minister Lianne Dalziel has indicated that, notwithstanding speculation that the Government would retrospectively validate the breaches, it had not gone down that track. However, while automatic relief would not be provided, schemes would be able to seek relief from court.

Two of the affected parties have applied to the Wellington High Court to have allotments of securities retrospectively validated. If the application fails, they have indicated they will seek a judicial declaration as to which particular investors' units are affected.

In October last year, Ms Dalziel appended a Supplementary Order Paper to the Business Law Reform Bill in respect of the breaches, which was due to be enacted by the end of 2003. Submissions on the Supplementary Order Paper closed on 19 November 2003. Enactment of the Bill is now not expected until March this year.

Enquiries and information

For more information on any of the cases, articles and features in Financial Services Quarterly, please email Rachel Gowing or call on 64 9 916 8825.