New ASIC Class Order CO 10/0333: Class actions and Brookfield Case

A new class order Co 10/0333 has been uploaded to the TimeBase Corporations Service along with its Explanatory Statement. The order provides for the

". . . temporary operation of funded representative proceedings and funded proof of debt arrangements without compliance with the requirements of the Act until 30 September 2010. This is to allow time for the Government and ASIC to implement the new regulatory and policy regime for representative proceedings and proof of debt arrangements announced by the Government on 4 May 2010 without impeding affected schemes before that regime is finalised."

The order follows on from the decision in Brookfield Multiplex Ltd v International Litigation Funding Partners Pte Ltd [2009] FCAFC 147 which held:

". . . that a funded representative action and solicitors' retainers for two representative proceedings against Brookfield Multiplex Ltd in the Federal Court were a managed investment scheme that should have been registered for the purposes of the Act."

An interesting article on this matter posted to Mondaq by law firms Middletons is Australia: Legislative Relief for Litigation Funded Class Actions.

As always the views of of our subscribers and customers welcomed.