Footnotes

Executive summary - Findings and recommendations

[1]        Name withheld, Submission 162.

[2]        See Clarendon Lawyers, Submission to CAMAC, Managed Investment Schemes, paragraphs 3.2.2 and 3.2.3.

[3]        See, for example, Mr Bernard Kelly, Submission 117, p. 1.

[4]        There are numerous accounts of investors being led to believe that the scheme was designed to be initially cash flow negative with harvest proceeds then kicking in to become cash flow positive. See, for example, name withheld, Submission 76, p. 1; Confidential Submissions 59, p. 1; Confidential Submission 155, p. 2; Confidential Submission 164, p. [1].

[5]        See, for example, name withheld, Submission 94, p. [2].

[6]        Submission 101, p. [1]; name withheld, Submission 131; Confidential Submission 156, p. [4].

[7]        Confidential Submission 30, p. [2]. 

[8]        Submission 44, pp. 3–4.

[9]        Submission 34, paragraphs 112–116.

[10]      Submission 161, p. 7.

[11]      In the 2005–06 Budget, the government announced that it would conduct a review of the application of taxation law to plantation forestry in the context of the government's broader plantation and natural resource management policies. Treasury, Review of Taxation Treatment of Plantation Forestry, 22 June 2005, http://archive.treasury.gov.au/contentitem.asp?ContentID=997&NavID=  (accessed 22 September 2015).

Chapter 1 - Introduction

[1]        Submission 75 to the committee's inquiry into the Scrutiny of Financial Advice, p. [1].

Chapter 2 - Managed investment schemes

[1]        See Alan Cummine, Submission 146, p. 7.

[2]        Commonwealth of Australia, Review of the Managed Investments Act 1998, 2001, p. 25.

[3]        See, for example, Australian Forest Products Association, Submission 126, p. 5.

[4]        Corporations Act 2001, s 9, Definition of managed investment scheme,  http://www.comlaw.gov.au/Details/C2014C00519/Download (accessed 15 November 2014).

[5]        Corporations Act 2001, s 601FA.

[6]        Corporations Act 2001, s 601FC(2).

[7]        Christine Brown, Colm Trusler and Kevin Davis, 'Managed Investment Scheme Regulation: Lessons from the Great Southern Failure', 29 January 2010, p. 3, http://kevindavis.com.au/secondpages/workinprogress/Great_Southern_JASSA-v2-28-1-10-3.pdf (accessed 9 December 2014).

[8]        Corporations Act 2001, s 601FC.

[9]        Corporations Act 2001, s 601FD.

[10]      Submission 34, paragraph 12.

[11]      Rick Lacey, Alistair Watson and John Crase, Economic effects of income-tax law on investments in Australian agriculture, with particular reference to new and emerging industries, Rural Industries Research and Development Corporation (RIRDC), RIRDC Publication No 05/078, RIRDC Project No AWT–1A, January 2006, pp. vii, 33, 37, 38 and 48. https://rirdc.infoservices.com.au/items/05-078 (accessed 5 December 2014).

[12]      The Treasury, Review of Non-Forestry Managed Investment Schemes, Report, December 2008, paragraphs 10 and 65, http://archive.treasury.gov.au/documents/1549/PDF/Review_of_non_forestry_MIS.pdf (accessed 4 December 2014).

[13]      Australian Forest Products Association, Submission 126, p. 6.

[14]      Rick Lacey, Alistair Watson and John Crase, Economic effects of income-tax law on investments in Australian agriculture, with particular reference to new and emerging industries, Rural Industries Research and Development Corporation (RIRDC), RIRDC Publication No 05/078, RIRDC Project No AWT–1A, January 2006, January 2006, p. vii.

[15]      Based on Chart 4: A typical MIS structure, The Treasury, Review of Non-Forestry Managed Investment Schemes, Report, December 2008, p. 28, http://archive.treasury.gov.au/documents/1549/PDF/Review_of_non_forestry_MIS.pdf (accessed 4 December 2014).

[16]      The Treasury, Review of Non-Forestry Managed Investment Schemes, Report, December 2008, paragraph 11, http://archive.treasury.gov.au/documents/1549/PDF/Review_of_non_forestry_MIS.pdf (accessed 4 December 2014). See also ASIC, Submission 34, paragraphs 39 and 40.

[17]      ASIC, Regulatory Guide 232, Agribusiness managed investment schemes: Improving disclosure for retail investors, January 2012, paragraph RG 232.33, http://download.asic.gov.au/media/1246956/rg232.pdf (accessed 9 June 2015).

[18]      Christine Brown, Colm Trusler and Kevin Davis, 'Managed Investment Scheme Regulation: Lessons from the Great Southern Failure', 29 January 2010, p. 3, http://kevindavis.com.au/secondpages/workinprogress/Great_Southern_JASSA-v2-28-1-10-3.pdf (accessed 9 December 2014).

[19]      Primary RE Limited v Great Southern Property Holdings Limited (recs & mgrs apptd) (in liq) [2011] VSC 242 (8 June 2011) [7].

[20]      Bendigo and Adelaide Bank, response to Submissions 52 et al, dated 24 December 2014, p. [3].

[21]      NewForests, 'Rationalizing Timberland Managed Investment Schemes: The Changing Landscape of Australia's Forestry Investment Sector', pp. 1–2, http://www.newforests.com.au/wp-content/uploads/2014/09/Rationalizing-the-MIS-20140908.pdf (accessed 15 November 2014).

[22]      ASIC, Submission 58 to the Parliamentary Joint Committee on Corporations and Financial Services, Inquiry into agribusiness managed investment schemes, July 2009, paragraph 62.

[23]      ATO, answer to written question on notice, No. 2 taken on 14 October 2015.

[24]      ASIC Submission 58 to the Parliamentary Joint Committee on Corporations and Financial Services, Inquiry into agribusiness managed investment schemes, July 2009, paragraphs 59–61.

[25]      Submission 126, p. 6.

[26]      NewForests, 'Rationalizing Timberland Managed Investment Schemes: The Changing Landscape of Australia's Forestry Investment Sector', p. 4, http://www.newforests.com.au/wp-content/uploads/2014/09/Rationalizing-the-MIS-20140908.pdf (accessed 15 November 2014).

[27]      National Forest Policy Statement: A New Focus for Australia's Forests, 2^nd edition 1995, pp. 3 and 27, http://www.agriculture.gov.au/SiteCollectionDocuments/forestry/australias-forest-policies/nat_nfps.pdf (accessed 12 January 2015).

[28]      National Forest Policy Statement: A New Focus for Australia's Forests, 2^nd  edition 1995, pp. 25 and 27, http://www.agriculture.gov.au/SiteCollectionDocuments/forestry/australias-forest-policies/nat_nfps.pdf (accessed 12 January 2015).

[29]      Department of Agriculture, Submission 135, p. 3.

[30]      Plantations for Australia: The 2020 Vision, an industry/government initiative for plantation forestry in Australia, p. 15, http://www.agriculture.gov.au/Style%20Library/Images/DAFF/__data/assets/pdffile/0009/2398185/plantations-australia-2020-vision.pdf (accessed 12 January 2015).

[31]      Department of Agriculture, Submission 135, p. 3.

[32]      Mr Alan Cummine has experience as a senior policy adviser to, and representative of, the forestry industry, Submission 146, p. 11.

[33]      Willmott Forests Limited, in the matter of Willmott Forests Limited (recs & mgrs apptd) (in liq) [2011] FCA 1517 (29 June 2011) [26]–[27].

[34]      Willmott Growers Group Inc v Willmott Forests Limited (recs & mgrs apptd) (in liq) [2013] HCA 51 (4 December 2013) [10].

[35]      The Australian Restructuring Insolvency & Turnaround Association (ARITA) gave the example of Willmott Forests Limited (WFL), which leased to growers portions of land which WFL owned or leased. The leases were made at various times. Submission 23, p. 2.

[36]      National Association of Forest Industries, A joint submission from the National Association of Forest Industries and Tree Plantations Australia to the Review of the Taxation of Plantation Forestry, p. 3, http://archive.treasury.gov.au/documents/1000/PDF/051_National_Association_of_Forest_Industries.pdf (accessed 3 January 2016).  

[37]      Willmott Forests Limited, in the matter of Willmott Forests Limited (recs & mgrs apptd) (in liq) [2011] FCA 1517 (29 June 2011), [26]–[27]. Mr Crosbie described this arrangement.

[38]      Re Great Southern Finance Pty Ltd (in liq) [2013] VSC 351 (15 July 2013).

[39]      ASIC, Submission 58 to the Parliamentary Joint Committee on Corporations and Financial Services, Inquiry into agribusiness managed investment schemes, July 2009, paragraph 74 and Regulatory Guide 232, Agribusiness managed investment schemes: Improving disclosure for retail investors, January 2012, paragraph 232.33 and Submission 34, paragraph 47 to this current inquiry.

[40]      Submission 34, paragraph 48 and ASIC, Submission 58 to the Parliamentary Joint Committee on Corporations and Financial Services, Inquiry into agribusiness managed investment schemes, July 2009, paragraph 75.

[41]      ASIC, Submission 58 to the Parliamentary Joint Committee on Corporations and Financial Services, Inquiry into aspects of agribusiness managed investment schemes, July 2009, paragraph 61.

[42]      ASIC, Submission 58 to the Parliamentary Joint Committee on Corporations and Financial Services, Inquiry into aspects of agribusiness managed investment schemes, July 2009, paragraph 66.

[43]      ASIC, Submission 58 to the Parliamentary Joint Committee on Corporations and Financial Services, Inquiry into aspects of agribusiness managed investment schemes, July 2009, paragraph 65.

[44]      Christine Brown, Colm Trusler and Kevin Davis, 'Managed Investment Scheme Regulation: Lessons from the Great Southern Failure', 29 January 2010, p. 2, http://kevindavis.com.au/secondpages/workinprogress/Great_Southern_JASSA-v2-28-1-10-3.pdf (accessed 9 December 2014).

[45]      See Non-forestry Managed Investment Schemes, Issues Paper, 2008, paragraph 13, http://archive.treasury.gov.au/documents/1401/PDF/Non-Forestry_Managed_Investment_Schemes_Issues_Paper.pdf (accessed 4 December 2014).

[46]      See Non-forestry Managed Investment Schemes, Issues Paper, 2008, paragraphs 14–18 and ASIC, Regulatory Guide 232, Agribusiness managed investment schemes: Improving disclosure for retail investors, January 2012, paragraph 232.33.

[47]      See Non-forestry Managed Investment Schemes, Issues Paper, 2008, paragraphs 14–22.

[48]      See Non-forestry Managed Investment Schemes, Issues Paper, 2008, paragraphs 14–22.

[49]      ASIC, Submission 58 to the Parliamentary Joint Committee on Corporations and Financial Services, Inquiry into agribusiness managed investment schemes, July 2009, paragraphs 65 and 74; Regulatory Guide 232, Agribusiness managed investment schemes: Improving disclosure for retail investors, January 2012, paragraph 232.33; and Tracy Bramwell and Peter Chudleigh, The Impact of Tax Driven Financial Investment on New Industry Development, RIRDC Publication No 00/14, RIRDC Project No AGT–3A, February 2000, p. 1, https://rirdc.infoservices.com.au/items/00-014 (accessed 5 December 2014).

[50]      Tracy Bramwell and Peter Chudleigh, The Impact of Tax Driven Financial Investment on New Industry Development, RIRDC Publication No 00/14, RIRDC Project No AGT–3A, February 2000, pp. 9–10, https://rirdc.infoservices.com.au/items/00-014 (accessed 5 December 2014).

[51]      NewForests, 'Rationalizing Timberland Managed Investment Schemes: The Changing Landscape of Australia's Forestry Investment Sector', p. 1, http://www.newforests.com.au/wp-content/uploads/2014/09/Rationalizing-the-MIS-20140908.pdf (accessed 15 November 2014).

[52]      Submission to the Review of Non-Forestry Managed Investment Schemes, p. 3, http://archive.treasury.gov.au/documents/1423/PDF/National_Farmers_Federation.PDF (accessed 23 November 2014). The National Farmers' Federation quoted figures from the Australian Agribusiness Group.

[53]      Non-Forestry Managed Investment Schemes, Issues Paper, 2008, Chart 1: Growth in initial contributions to non-forestry MIS, p. 2.

[54]      NewForests, 'Rationalizing Timberland Managed Investment Schemes: The Changing Landscape of Australia's Forestry Investment Sector', p. 1, http://www.newforests.com.au/wp-content/uploads/2014/09/Rationalizing-the-MIS-20140908.pdf (accessed 15 November 2014).

[55]      Mr Greg Tanzer, Proof Committee Hansard, 14 October 2015, p. 18.

[56]      ATO, answer to question taken on notice, 14 October 2015.

[57]      Mr Greg Tanzer, Proof Committee Hansard, 14 October 2015, p. 18.

[58]      Mr Greg Tanzer, Proof Committee Hansard, 14 October 2015, p. 18.

[59]      Environinvest Limited, which was the RE of nine MIS in forestry plantation projects and raised approximately $70 million from 320 investors, failed in 2008 with receivers and managers appointed in September 2008 to the Environinvest Group. See ASIC, Submission 58 to the Parliamentary Joint Committee on Corporations and Financial Services, Inquiry into agribusiness managed investment schemes, July 2009, paragraph 167.

[60]      ASIC, Submission 58 to the Parliamentary Joint Committee on Corporations and Financial Services, Inquiry into agribusiness managed investment schemes, July 2009, paragraph 55. This submission provides more detailed statistics on investors in Great Southern and Timbercorp.

[61]      Mr Greg Tanzer, Proof Committee Hansard, 14 October 2015, p. 18 and also refer to Table 2.1.

[62]      Woodcroft-Brown v Timbercorp Securities Ltd (in liq), [2011] VCS 427 (1 September 2011) [1].

[63]      ASIC, Submission 58 to the Parliamentary Joint Committee on Corporations and Financial Services, Inquiry into agribusiness managed investment schemes, July 2009, paragraph 172.

[64]      ASIC, Submission 58 to the Parliamentary Joint Committee on Corporations and Financial Services, Inquiry into agribusiness managed investment schemes, July 2009, paragraph 169.

[65]      ASIC, Submission 58 to the Parliamentary Joint Committee on Corporations and Financial Services, Inquiry into agribusiness managed investment schemes, July 2009, paragraph 169. See also Simon A. de Garis, Rural Managed Investment Schemes in Victoria, Australia: The demise of Timbercorp, Paper presented at the Pacific Rim Real Estate Society Conference, Wellington, New Zealand, January 2010. Mr de Garis was Senior Lecturer, School of Property Construction and Project Management, RMIT University Melbourne, http://www.prres.net/papers/Degaris_Rural_Managed_Investment_Schemes_Victoria_Australia-Demise_Timbercorp.pdf (accessed 5 December 2014).

[66]      Woodcroft-Brown v Timbercorp Securities Ltd (in liq), [2011] VCS 427 (1 September 2011) [2].

[67]      Bendigo and Adelaide Bank, response to Submissions 52 et al, dated 24 December 2014, p. [1].

[68]      Deed of Settlement proposed by Liquidators. ASIC, Submission 58 to the Parliamentary Joint Committee on Corporations and Financial Services, Inquiry into agribusiness managed investment schemes, July 2009, paragraph 173. The number of schemes was recorded as 'approximately 44' in Annexure, Clarke v Great Southern Pty Ltd (recs & mgrs apptd) (in liq) [2014] VSC 334 (25 July 2014) [69] to Clarke (as trustee of the Clarke Family Trust) v Great Southern Finance Pty Ltd (recs & mgrs apptd) (in liq), [2014] VSC 516.

[69]      ASIC, Submission 58 to the Parliamentary Joint Committee on Corporations and Financial Services, Inquiry into agribusiness managed investment schemes, July 2009, paragraph 177.

[70]      See Mr Michael Galvin, who was one of a team of lawyers who represented plaintiffs in 16 class actions in the Supreme Court of Victoria arising out of the collapse in 2009 of the Great Southern group, Proof Committee Hansard, 6 August 2015, p. 30.

[71]      Clarke v Great Southern Finance Pty Ltd (recs & mgrs apptd) [2012] VSC 260 (20 June 2012), [3]–[5].

[72]      ASIC, Submission 58 to the Parliamentary Joint Committee on Corporations and Financial Services, Inquiry into agribusiness managed investment schemes, July 2009, paragraphs 174–176. Also see Clarke v Great Southern Finance Pty Ltd (recs & mgrs apptd) (in liq), [2014] VSC 516, [75].

[73]      Annexure, Clarke v Great Southern Pty Ltd (recs & mgrs apptd) (in liq) [2014] VSC 334 (25 July 2014) [67] to Clarke (as trustee of the Clarke Family Trust) v Great Southern Finance Pty Ltd (recs & mgrs apptd) (in liq), [2014] VSC 516.

[74]      See Deed of Settlement proposed by Liquidators, May 2014, p. 4.

[75]      Bendigo and Adelaide Bank, response to Submissions 52 et al, dated 24 December 2014, p. [5].

[76]      Bendigo and Adelaide Bank, response to Submissions 52 et al, dated 24 December 2014, p. [5].

[77]      Willmott Forests Limited, in the matter of Willmott Forests Limited (recs & mgrs apptd) (in liq) [2011] FCA 1517 (29 June 2011) [35].

[78]      Willmott Growers Group Inc v Willmott Forests Limited (recs & mgrs apptd) (in liq) [2013] HCA 51 (4 December 2013) [15].

[79]      Gunns Limited, home page 'Our Business', http://gunns.com.au/our-business/ (accessed 22 September 2015).

[80]      ASX, http://www.delisted.com.au/company/gunns-limited (accessed 22 September 2015).

[81]      Re Gunns Plantations Limited (in liq) (recs & mgrs apptd) (No 4) [2014] VSC 369 (11 August 2014) [11].

[82]      Re Gunns Plantations Limited (in liq)( recs & mgrs apptd) (No 4) [2014] VSC 369 (11 August 2014) [11].

Chapter 3 -  

[1]        Name withheld, Submission 72.

[2]        See Clarendon Lawyers, Submission to CAMAC, Managed Investment Schemes, paragraphs 3.2.2 and 3.2.3.

[3]        For the purposes of this inquiry, the committee does not discuss the propriety of the legal definition of a retail investor as determined in regulations 7.1.18–7.1.28. The committee however, uses this test as a guide: that is the value of the financial product should be under $500,000 and net assets of under $2.5 million or gross income for each of the last two financial years under $250,000. Applying this test, the great majority of growers who wrote to the committee would be categorised as retail investors: they were inexperienced investors with limited knowledge of financial products and ill-equipped to appreciate the risks involved in more complex financial products.

[4]        See, for example, Submissions 1, 2, 6, 28, 31, 33, 55, 57, 61, 62, 72, 73, 75, 76, 77, 78, 93, 101, 112, 113, 114, 115, 117, 123, 131, 147, 162, 167 and 169. See also Ms Naomi Halpern and Mr Bernard Kelly, Proof Committee Hansard, 12 November 2014, pp. 2, 4. Confidential Submissions 8, 35, 37, 59, 66, 83, 116, 131, 192.

[5]        Mr Brad Pearce, Submission 111, p. 1.

[6]        Confidential Submission 92, p. [2].

[7]        Name withheld, Submission 33, p. [1].

[8]        Mr Alexander McShane, Proof Committee Hansard, 6 August 2015, p. 3.

[9]        Name withheld, Submission 75, p. [1].

[10]      Confidential Submission 37, p. 1.

[11]      Name withheld, Submission 102, p. [1].

[12]      Name withheld, Submission 31, p. 1.

[13]      Name withheld, Submission 18, p. 1.

[14]      Name withheld, Submission 18, p. 1.

[15]      Name withheld, Submission 62, p. 1.

[16]      Submission 25, p. 1.

[17]      Name withheld, Submission 30, p. 1.

[18]      Submission 170, paragraph 27.

[19]      Confidential Submission 40.

[20]      Confidential Submission 35.

[21]      Name withheld, Submission 61, p. 1.

[22]      Name withheld, Submission 65, p. 1.

[23]      Name withheld, Submission 73, p. 1 (emphasis in original).

[24]      Confidential Submission 37, p. 3.

[25]      See, for example, Mr Bernard Kelly, Submission 117, p. [1].

Chapter 4 -                                 Taxation concessions   

[1]        Name withheld, Submission 151, p. 5.

[2]        Tracy Bramwell and Peter Chudleigh, The Impact of Tax Driven Financial Investment on New Industry Development, RIRDC Publication No 00/14, RIRDC Project No AGT–3A, February 2000, p. iii, https://rirdc.infoservices.com.au/items/00-014 (accessed 5 December 2014).

[3]        See Mr Neil White, Melbourne-based financial planner and Chairman of the Agriculture Growers Action Group, informed the committee that 'Despite common public perceptions, members of the group were 'not high-net-worth individuals', Proof Committee Hansard, 12 November 2014, p. 32. See also, Mr Michael Galvin, Proof Committee Hansard, 6 August 2015, p. 31; name withheld, Submission 120, p. [1]; Confidential Submission 36; and Confidential Submission 141, p. [1].

[4]        Name withheld, Submission 56, p. [2].

[5]        Confidential Submission 38, p. 1.

[6]        Name withheld, Submission 153, pp. 3–4 and, as another example, Mr Tyson O'Shannassy Submission 158, p. 4.

[7]        Name withheld, Submission 48, p. 1; Submission 109, p. 2; Submission 120, p. [1]; name withheld, Submission 167, p. [1]; Mr Neil White, Proof Committee Hansard, 12 November 2014, p. 32; and Confidential Submission 140.

[8]        Confidential Submission 154, p. [1].

[9]        Name withheld, Submission 30, p. 1.

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

[11]      Name withheld, Submission 120, p. [1].

[12]      Mr Ken Grech, Submission 123, p. 1.

[13]      Submission 25, p. 1.

[14]      Name withheld, Submission 72, p. 1.

[15]      Name withheld, Submission 31, p. [2].

[16]      Name withheld, Submission 42, p. [4].

[17]      Submission 54, p. [1].

[18]      Submission 49, p. 1.

[19]      Submission 1, p. 1 (emphasis in original). Mr Lawtie's adviser was Mr David Radovan, formally of Infocus, who was found guilty by ASIC and banned for 5 years. ASIC, 10-217AD 'ASIC bans WA financial adviser', 26 October 2010, http://asic.gov.au/about-asic/media-centre/find-a-media-release/2010-releases/10-217ad-asic-bans-wa-financial-adviser/ (accessed 22 September 2015).

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

[21]      Name withheld, Submission 102, p. 1.

[22]      Name withheld, Submission 42, p. [4].

[23]      Name withheld, Submission 33, p. [1].

[24]      Mr Stefan Kaiser, Submission 107, p. 5.

[25]      Submission 19, p. 1.

[26]      Submission 187, paragraph 11.

[27]      ANAO, Audit Report No.23 2003–04, Performance Audit, The Australian Taxation Office's Management of Aggressive Tax Planning, Australian Taxation Office, 2004, paragraph 8, http://www.anao.gov.au/~/media/Uploads/Documents/2003%2004_audit_report_23.pdf (accessed 12 January 2014).

[28]      ASIC, answer to question on notice, No. 3, 2 October 2015.

[29]      Inspector-General of Taxation, Appendix 3: History of Australia’s system for public advice on income taxation matters, a report to the Assistant Treasurer, 7 April 2009, http://igt.gov.au/publications/reports-of-reviews/administration-of-public-binding-advice/appendix-3-history-of-australias-system-for-public-advice-on-income-taxation-matters/ (accessed 4 January 2016).

[30]      See, for example, Rick Lacey, Alistair Watson and John Crase, Economic effects of income-tax law on investments in Australian agriculture with particular reference to new and emerging industries, No 05/078, RIRDC Project No AWT–1A, January 2006, p. 4, https://rirdc.infoservices.com.au/items/05-078 (accessed 5 December 2014).

[31]      See, for example, Rick Lacey, Alistair Watson and John Crase, Economic effects of income-tax law on investments in Australian agriculture with particular reference to new and emerging industries, RIRDC Publication No 05/078, RIRDC Project No AWT–1A, January 2006, pp. 4. https://rirdc.infoservices.com.au/items/05-078 (accessed 5 December 2014).

[32]      Senate Economics References Committee, Inquiry into mass marketed tax effective schemes and investor protection, Interim report, June 2001, p. 1.

[33]      Senate Economics References Committee, Inquiry into mass marketed tax effective schemes and investor protection, Final report, February 2002, pp. 5–7.

[34]      Senate Economics References Committee, Inquiry into mass marketed tax effective schemes and investor protection, Interim report, June 2001, p. 23. A private ruling is binding advice that sets out how a tax law applies in relation to a specific scheme or circumstance and applies to the individual taxpayer who requested the ruling. In 2001, the committee formed the view that 'the influence on investor perceptions of PBRs used to market schemes needs to be recognised. Insofar as PBRs were used as marketing tools to encourage participants to believe they represented a general ATO position, participants were poorly served by both promoters and advisers, particularly tax practitioners who would have known that this was an improper use of PBRs and that no certainty existed for anyone except the PBR applicant'.

[35]      Senate Economics References Committee, Inquiry into mass marketed tax effective schemes and investor protection, Final report, February 2002, p. 34.

[36]      Rick Lacey, Alistair Watson and John Crase, Economic effects of income-tax law on investments in Australian agriculture with particular reference to new and emerging industries, RIRDC Publication No 05/078, RIRDC Project No AWT–1A, January 2006, pp. 10–11 and 48.

[37]      Submission to the Review of Non-Forestry Managed Investment Schemes, 12 September 2008, p. 4, http://archive.treasury.gov.au/documents/1423/PDF/National_Farmers_Federation.PDF (accessed 23 November 2014).

[38]      Inspector-General of Taxation, Appendix 3: History of Australia’s system for public advice on income taxation matters, a report to the Assistant Treasurer, 7 April 2009, http://igt.gov.au/publications/reports-of-reviews/administration-of-public-binding-advice/appendix-3-history-of-australias-system-for-public-advice-on-income-taxation-matters/ (accessed 4 January 2016).

[39]      ATO, Product Ruling, PR 2007/71, http://law.ato.gov.au/atolaw/view.htm?Docid=PRR/PR200771/NAT/ATO/00001 (accessed 15 December 2014). According to the ATO, the investor would be protected from having to pay any underpaid tax, penalty or interest in respect of the matters covered by the ruling if it turned out that it did not correctly state how the relevant provision applied to the investor.

[40]      ATO, Product Ruling, PR 2007/71, http://law.ato.gov.au/atolaw/view.htm?Docid=PRR/PR200771/NAT/ATO/00001 (accessed 15 December 2014). See also PR 2004/116.

[41]      ATO, Product Ruling, PR 2007/71, http://law.ato.gov.au/atolaw/view.htm?Docid=PRR/PR200771/NAT/ATO/00001 (accessed 15 December 2014).  

[42]      Submission 34, paragraph 56.

[43]      Submission 34, paragraph 57.

[44]      Submission 60, Appendix 1, 'MS&A submission on the proposed new taxation arrangements for investments in Forestry Managed Investment Schemes (MIS)', p. 5.

[45]      Proof Committee Hansard, 5 August 2015, pp. 3 and 4.

[46]      Mr David Lorimer, Submission 55. See also Mr Alexander McShane, Proof Committee Hansard, 6 August, 2015, pp. 3–4 and name withheld, Submission 69, p. 1.

[47]      Confidential Submission 37, p. 13.

[48]      Ms Barbara Gray, Submission 54, p. [1].

[49]      Submission 55, p. 1. See also Submissions 57, p. [1]; 64, p. [2]; 68, p. [1]; 70, p. [1]; 81, p. [1]; and 87. Name withheld, Submission 103; Submission 133, p. 1; and Confidential Submission 8, p. [1]; Confidential Submission 80, p. 3; Confidential Submission 92, p. [2].

[50]      Submission 87, p. 1.

[51]      Submission 118, p. 6.

[52]      Submission 149, p. 3.

[53]      See, for example, name withheld, Submission 150, pp. 1–2.

[54]      Corporations and Markets Advisory Committee, The establishment and operation of managed investment schemes, Discussion paper, March 2014, p. 42.

[55]      Senate Economics References Committee, Inquiry into mass marketed tax effective schemes and investor protection, Final Report, February 2002, paragraph 4.33. Also refer to discussion on PDSs and lodgement of notification with ASIC in this current report, paragraph 9.16.

[56]      ASIC's MoneySmart website at https://www.moneysmart.gov.au/tools-and-resources/check-asic-lists and https://www.moneysmart.gov.au/tools-and-resources/check-asic-lists#prospectus   (accessed 7 October 2015). See also ASIC, answer to written question on notice, No. 1, 2 October 2015.

[57]      ASIC, answer to question on notice, No. 3, 2 October 2015.

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

[59]      Name withheld, Submission 151, p. 5.

[60]      Name withheld, Supplementary Submission 52, p. 2.

[61]      Confidential Submission 36, pp. [1] and [5].

[62]      Confidential Submission 36, p. [5].

[63]      Name withheld, Submission 56, p. [2].

[64]      Name withheld, Submission 91, p. 3.

[65]      Mr Stefan Kaiser, Submission 107, p. 5. See also, Submission 56, p. [1]; Submission 114, p. 1; and name withheld, Submission 150, p. [2].

[66]      Mr Stefan Kaiser, Submission 107, p. 20. Mr Kaiser was supporting a recommendation by Willemsen, R. 2010, Submission to ASIC, 'Consultation Paper 133: Agribusiness Managed Investment Schemes: Improving Disclosure for Retail Investors'.

Chapter 5 - Geared investment

[1]        Cited in Ms Kathleen Marsh, Submission 47, example 2, p. [1].

[2]        Senate Economics References Committee, Inquiry into the performance of the Australian Securities and Investments Commission, June 2014, chapters 5 and 6, paragraphs 6.1–6.7.

[3]        See Non-forestry Managed Investment Schemes, Issues Paper, 2008, paragraph 19.

[4]        Proof Committee Hansard, 6 August 2015, p. 25.

[5]        Confidential Submission 37, p. 2.

[6]        Mr Neil Kendall, Proof Committee Hansard, 6 August 2015, p. 25.

[7]        Mr Neil Kendall, Proof Committee Hansard, 6 August 2015, p. 25.

[8]        Bendigo and Adelaide Bank, Response to Submission 52, Submission 63, Submission 175 and Submission 176, dated 24 December 2014, p. [3].

[9]        Submission 145, paragraph 33.

[10]      Confidential Submission 37, p. 4.

[11]      Submission 118, p. 6 (emphasis in original).

[12]      See, for example, name withheld, Submission 102, p. 1 and name withheld, Submission 97, p. [1].

[13]      There are numerous accounts of investors being led to believe that the scheme was designed to be initially cash flow negative with harvest proceeds then kicking in to become cash flow positive. See, for example, name withheld, Submission 76, p. 1; Confidential Submission 59, p. 1; Confidential Submission 155, p. 2; and Confidential Submission 164, p. [1].

[14]      See, for example, name withheld, Submission 94, pp. [1] and [2].

[15]      Name withheld, Submission 68, p. 1.

[16]      Name withheld, Submission 76, p. [2].

[17]      Submission 56, p. [1].

[18]      Submission 40, p. [1].

[19]      Name withheld, Submission 201, p. [1].

[20]      Name withheld, Submission 201, p. [1].

[21]      Submission 29, p. 1.

[22]      Submission 21, p. 1.

[23]      David Huggins, Huggins Legal, Submission 118, p. 3.

[24]      See, for example, Mr John McDonald, Proof Committee Hansard, 12 November 2014, p. 3; and Confidential Submission 37, p. 4.

[25]      Name withheld, Submission 18, p. 1.

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

[27]      Name withheld, Submission 98, p. 1. See also Submission 103, p. 1; and Confidential Submission 81.

[28]      Name withheld, Submission 153, p. [2].

[29]      Confidential Supplementary Submission 156.1.

[30]      Submission 1, p. 1.

[31]      Submission 1, p. 1.

[32]      Submission 43, p. 2. See also Confidential Submission 92, p. [1]; Confidential Submission 130, p. [2]; Confidential Submission 131, p. 1.

[33]      Ray Wilde and Maree Wilde, Submission 43, p. 2.

[34]      Ray Wilde and Maree Wilde, Submission 43, p. 6.

[35]      Ms Sandra Cordony, Submission 169, p. 4.

[36]      Mr Troy Lott, Submission 101, p. [1]; name withheld, Submission 131; Confidential Submission 156, p. [2].

[37]      Mr Troy Lott, Submission 101, p. [1]; name withheld, Submission 131; Confidential Submission 156, p. [2].

[38]      Mr Shane Richards, Submission 108, p. [1].

[39]      Mr Ken Grech, Submission 123, p. 1.

[40]      Confidential Submission 38, p. 1.

[41]      Ms Michelle Johnson, Submission 139, p. [1].

[42]      Name withheld, Submission 103, p. 1.

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

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

[45]      Mr Troy Lott, Submission 101, p. [1].

[46]      Name withheld, Submission 98, p. 1.

[47]      Confidential Submission 81, p. [2]. It should be noted that in this case the adviser has been convicted of theft from a client and ASIC and Association of Financial Advisers (AFA)have barred her for life from providing financial advice, but, as noted by the investor, all came too late for her and the rest of the adviser's clientele.

[48]      Name withheld, Submission 96, p. 1.

[49]      Submission 40, pp. [1]–[2].

[50]      Submission 40, p. [2].

[51]      Name withheld, Submission 151, p. 2.

[52]      Name withheld, Submission 151, p. 6.

[53]      Confidential Submission 38, p. 1. See Mr Con Solakidis, who stated the documents mailed out to him did not require him to 'to fill out or arrange proof of particulars of myself or have anything witnessed. I was just asked to sign where the Yellow tabs indicated to sign'. Submission 119.

[54]      Name withheld, Submission 162.

[55]      Confidential Submission 39, p. 2.

[56]      Submission 43, pp. 2–3. See also, name withheld, Submission 121, p. 1; name withheld, Submission 162, p. [1]; Confidential Submission 93, p. [1].

[57]      Submission 101, p. [1]. See also name withheld, Submission 186, p. 4.

[58]      Mr Con Solakidis, Submission 119, p. [2].

[59]      Confidential Supplementary Submission 156.1, p. [6].

[60]      Submission 40, p. [1].

[61]      See name withheld, Submission 100, p. 8; and name withheld, Submission 121.

[62]      For example, one investor stated that he thought he had signed for two loans but found he had five owing over $200,000. Name withheld, Submission 121, p. 1.

[63]      Proof Committee Hansard, 12 November 2014, p. 3.

[64]      Confidential Submission 154, pp. [2] and [3].

[65]      Proof Committee Hansard, 12 November 2014, p. 4.

[66]      Mrs Meredith Byrne, Proof Committee Hansard, 12 November 2014, p. 5.

[67]      Name withheld, Submission 93, p. [2].

[68]      Mrs Kerree Bezencon, Chair, Timbercorp Grower Group, Proof Committee Hansard, 12 November 2014, p. 40.

[69]      Name withheld, Submission 45.

[70]      Corporations and Markets Advisory Committee, The establishment and operation of managed investment schemes, Discussion paper, March 2014, p. 18.

[71]      Name withheld, Submission 91, p. 2. See also name withheld, Submission 61, p. 1; name withheld, 121, p. 1; and Confidential Submission 80, p. 5; Confidential Submission 85; Confidential Submission 92, p. [1].

[72]      Name withheld, Submission 95, p. [2].

[73]      Confidential Submission 134, p. [2]. See also, Confidential Submission 59, p. [2].

[74]      Name withheld, Submission 44, pp. 2–3.

[75]      Proof Committee Hansard, 12 November 2014, p. 8.

[76]      ASIC, answers to question on notice, No. 3, 2 October 2015.

[77]      ASIC, answers to question on notice, No. 3, 2 October 2015.

[78]      Mr Neil Kendall, Proof Committee Hansard, 6 August 2015, p. 26.

[79]      Name withheld, Submission 97, p. [1]; name withheld, Submission 102, p. [1]; Confidential Submission 36, p. [8]; Confidential Submission 81 and see paragraph 5.4.

[80]      Name withheld, Submission 56, p. [1]. See also name withheld, Submission 100, p. 11.

[81]      Proof Committee Hansard, 12 November 2014, p. 13. Mr Peterson was general manager of distribution at Timbercorp from September 2004 to December 2009.

[82]      Proof Committee Hansard, 12 November 2014, p. 13.

[83]      KordaMentha, additional information on behalf of Timbercorp Finance, dated 4 December 2014, p. 5.

[84]      Internal Revenue Service, 'Recourse vs. Nonrecourse Debt', http://apps.irs.gov/app/vita/content/36/36_02_020.jsp; Law Dictionary: What is full recourse loan? (Black's Law Dictionary), http://thelawdictionary.org/full-recourse-loan/ and NAB's website, http://www.nab.com.au/personal/loans/personal-loans/super-lever/limited-recourse-borrowing (accessed 3 December 2014).

[85]      Submission 34, paragraph 59.

[86]      Christine Brown, Colm Trusler and Kevin Davis, 'Managed Investment Scheme Regulation: Lessons from the Great Southern Failure', 29 January 2010, p. 10, http://kevindavis.com.au/secondpages/workinprogress/Great_Southern_JASSA-v2-28-1-10-3.pdf (9 December 2014).

[87]      Submission 34, paragraph 60.

[88]      Confidential Submission 134, p. [4].

[89]      Submission 109, p. 1; Mr Brad Pearce, Submission 111, p. 1; name withheld, Submission 168, p. 1; Confidential Submission 125, p. [1] and Mr Neil White, Proof Committee Hansard, 12 November 2014, p. 32.

[90]      Name withheld, Submission 52, p. 1.

[91]      Name withheld, Supplementary Submission 52.1, p. 2.

[92]      Confidential Submission 115, p. 3; Submission 95, p. [1].

[93]      Name withheld, Submission 45, p. 1.

[94]      Name withheld, Submission 56, p. [2].

[95]      Name withheld, Submission 95, p. [3].

[96]      Name withheld, Submission 168, p. 1.

[97]      Name withheld, Submission 93, p. [2].

[98]      Proof Committee Hansard, 6 August 2015, p. 6.

[99]      Grant and Karen Lillecrapp, Submission 109, p. 1.

[100]    Confidential Submission 134, p. [3].

[101]    Supplementary Submission 186.1, p. 2.

[102]    Supplementary Submission 186.1, p. 2.

[103]    Confidential Submission 141, p. 2.

[104]    Mr Scott Gannon and Ms Julie Gannon, Submission 114, p. 1.

[105]    Proof Committee Hansard, 12 November 2014, p. 18.

[106]    Submission 16, p. 1.

[107]    KordaMentha, additional information on behalf of Timbercorp Finance, dated 4 December 2014, p. 3.

[108]    Neil White, Proof Committee Hansard, 12 November 2014, p. 39 and Confidential Submission 124, p. 2.

[109]    Mr Neil White, Proof Committee Hansard, 12 November 2014, pp. 38 and 40.

[110]    Name withheld, Submission 61, p. 1. See also name withheld, Submission 121, p. 1.

[111]    Name withheld, Submission 61, p. 1. ERA Legal represented a certain group of investors who objected to the proposed Great Southern deed of settlement.

[112]    Name withheld, Submission 32, p. 1.

[113]    ASIC, Report 17, Compliance with advice and disclosure obligations: Report on primary production schemes, February 2003, p. 19.

[114]    See, for example, Mr David Huggins who noted that the entire process from completing an application to making an investment/application for finance and for funds to be drawn down took approximately 24 hours. Submission 118, pp. 4 and 7. Confidential Submission 36, p. [3].

[115]    Submission 29, p. 1.

[116]    Name withheld, Submission 45, p. 2. See also name withheld, Submission 89, p. [1]; Confidential Submission 92, p. [1]; Confidential Submission 39, p. 3.

[117]    Confidential Submission 82, p. [1].

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

[119]    Submission 5, p. 1.

[120]    Name withheld, Submission 89, p. [1].

[121]    Name withheld, Submission 89, p. [1].

[122]    Confidential Submission 130, p. [1].

[123]    Confidential Submission 36, p. [9].

[124]    Proof Committee Hansard, 12 November 2014, p. 16.

[125]    In its report on the performance of ASIC, the committee detailed the many cases of poor lending practices especially the targeting of vulnerable older people who were asset rich-income poor. It described practices such as brokers falsifying loan application forms. See Senate Economics References Committee, Performance of the Australian Securities and Investments Commission, June 2014, paragraphs 5.28–5.29.

[126]    See, for example, Mr David Abraham, Submission 64; Mr Troy Lott, Submission 101, p. [1]; Confidential Submission 59; Confidential Submission 156, p. [6]. The author of Confidential Submission 82 noted the urgency to sign and referred to sections of documents not being completed with assurances from her adviser that 'they would be handled at a later date and that they weren't important'.

[127]    Name withheld, Submissions 44, pp. 3–4.

                                   Chapter 6 - Retail investors

[1]        Confidential Submission 134, p. [1].

[2]        See chapter 3 and paragraphs 4.6–4.15.

[3]        Ms Barbara Gray, Submission 54, p. 1.

[4]        Mr Giles Lynes, Submission 113, p. [2].

[5]        European Union, Consumer Decision-Making in Retail Investment Services: A Behavioural Economics Perspective, Final Report, November 2010, p. 6, http://ec.europa.eu/consumers/archive/strategy/docs/final_report_en.pdf (accessed 10 December 2014).

[6]        Financial Conduct Authority, Applying behavioural economics at the Financial Conduct Authority, Occasional Paper No.1, April 2013, p. 19, http://www.fca.org.uk/static/documents/occasional-papers/occasional-paper-1.pdf (4 December 2014).

[7]        ASIC, Shadow shopping study of retirement advice, Report 279, March 2012, paragraphs 202 and 203, https://dv8nx270cl59a.cloudfront.net/media/1343876/rep279-published-27-March-2012.pdf (accessed 12 December 2014).

[8]        ASIC, Shadow shopping study of retirement advice, Report 279, March 2012, paragraphs 202 and 203, https://dv8nx270cl59a.cloudfront.net/media/1343876/rep279-published-27-March-2012.pdf (accessed 12 December 2014).

[9]        Financial System Inquiry, Final Report, Commonwealth of Australia, November 2014, p. 215, http://fsi.gov.au/files/2014/12/FSI_Final_Report_Consolidated20141210.pdf (accessed 10 December 2014).

[10]      Proof Committee Hansard, 12 November 2014, pp. 44–45.

[11]      Mr Jeff Morris underlined the fact that clients are 'too trusting'. Proof Committee Hansard, 12 November 2014, p. 44.

[12]      Mr John McDonald and Mr Jeff Morris, Proof Committee Hansard, 12 November 2014, pp. 3 and 45. 

[13]      Confidential Submission 37, p. 4.

[14]      Confidential Submission 129, p. 1. See name withheld Submission 103, p. 1.

[15]      Name withheld, Submission 41, pp. 3 and 5.

[16]      Shaun Ritchie, Submission 159, p. [1].

[17]      Confidential Submission 37, p. 13.

[18]      Confidential Submission 154, pp. 1 and 5.

[19]      For example, see name withheld Submission 78; name withheld, Submission 151, pp. 1 and 2; name withheld Submission 152, p. 1.

[20]      Name withheld, Submission 152.

[21]      Name withheld, Submission 41, p. 3.

[22]      Name withheld, Submission 41, p. 3.

[23]      Submission 40, p. [1].

[24]      Submission 40, p. [1].

[25]      Name withheld, Submission 102, p. [1] and name withheld, Submission 4, p. 1.

[26]      Confidential Submission 134, p. [3].

[27]      Name withheld, Submission 70, p. [1].

[28]      Name withheld, Submission 70, p. [1].

[29]      Name withheld, Submission 71, p. [1].

[30]      Ms Barbara Gray, Submission 54, p. [1].

[31]      Submission 25, p. 1.

[32]      Name withheld, Submission 100, p. 13. They stated, 'We did not have the skills to develop a business under a future financial strategy, hence we went to so called 'experts' for advice'.

[33]      Confidential Submission 134, p. [1].

[34]      Proof Committee Hansard, 12 November 2014, p. 3.

[35]      Proof Committee Hansard, 12 November 2014, p. 3.

[36]      Name withheld, Submission 4; name withheld, Submission 78; Mr Con Solakidis, Submission 119, p. [2]; Confidential Submission 92, p. [2]; and Confidential Submission 134, p. [2].

[37]      Name withheld, Submission 56, p. [3].

[38]      Name withheld, Submission 73 (emphasis in original).

[39]      Confidential Submission 38, p. 1.

[40]      Name withheld, Submission 30.

[41]      Submission 139, p. [1].

[42]      Submission 64, p. [1].

[43]      Submission 64, p. [1].

[44]      Confidential Submission 134, p. [3].

[45]      Name withheld, Submission 56, p. [1]. See also Scott and Julie Gannon, Submission 114.

[46]      Submission 108, p. [2].

[47]      Mr Alexander McShane, Proof Committee Hansard, 6 August 2015, p. 3. Also Confidential Submission 134, p. [1].

[48]      Confidential Submission 36, p. [1].

                                           -  

[1]        Mr Peter Tomasetti, Submission 170, p. 1.

[2]        Corporations Act 2001, s 766B.

[3]        Senate Economics References Committee, Inquiry into mass marketed tax effective schemes and investor protection, Final Report, February 2002, paragraph 4.39.

[4]        Senate Economics References Committee, Inquiry into mass marketed tax effective schemes and investor protection, Final Report, February 2002, paragraph 4.46.

[5]        ASIC, Report 17, Compliance with advice and disclosure obligations: Report on primary production schemes, February 2003, p. 4.

[6]        Senate Economics References Committee, Inquiry into mass marketed tax effective schemes and investor protection, Final Report, February 2002, paragraph 4.40.

[7]        Senate Economics References Committee, Inquiry into mass marketed tax effective schemes and investor protection, Final Report, February 2002, paragraph 4.41.

[8]        Corporations Act 2001 (30 July 2004), s 947B and s 947C.

[9]        Corporations Act 2001 (30 July 2004), s 947C.

[10]      Corporations Act 2001, s 946C sets down the critical time frames for providing a Statement of Advice. (30 July 2004).

[11]      Submission 142, p. [2].

[12]      See for example name withheld, Submission 151, p. 1; Mr Shaun Ritchie, Submission 159, p. [2]; name withheld, Submission 162, p. 1; Confidential Submission 8, p. [1].

[13]      Submission 118, p. 7 (emphasis in original). See also Mr Shaun Ritchie, Submission 159, p. [2].

[14]      Name withheld, Submission 100, p. 2.

[15]      Confidential Submission 134, p. [1].

[16]      Confidential Submission 134, p. [1].

[17]      Confidential Submission 37, p. 1; Submission 54, p. [1].

[18]      Mr Giles Lynes, Submission 113, p. [2]; Confidential Submission 37, pp. 1 and 2; Confidential Submission 15, p. [2].

[19]      Name withheld, Supplementary Submission 52.1, p. [2].

[20]      Name withheld, Submission 65, p. 1.

[21]      Name withheld, Submission 65, p. 1. See also Mr Peter Mazzucato, who identified major flaws in the advice he received from his financial adviser. The adviser did not provide him with a cash flow analysis, arranged a loan that was way above Mr Mazzucato's ability to pay based upon his income at that time. Also, the financial planner did not tell Mr Mazzucato about the ongoing costs of the loan. Submission 40, p. [2].

[22]      Confidential Submission 36, p. [6].

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

[24]      Confidential Submission 125, p. [1].

[25]      Confidential Submission 36, p. [4].

[26]      Confidential Submission 35, pp. 1–2; Confidential Submission 115, p. 3; Confidential Submission 128, p. 1.

[27]      Name withheld, Submission 100, p. 10; Mr Tyson O'Shannassy, Submission 158, p. 4; Confidential Submission 35; Confidential Submission 36, p. [4]; Confidential Submission 79; Confidential Submission 115, p. 2.

[28]      Submission 40, p. [2].

[29]      Roderick and Andigone Aguilar, Submission 67, p. 1; Confidential Submission 92, p. [1].

[30]      Confidential Submission 36, p. [1].

[31]      Confidential Submission 35, p. [2].

[32]      Confidential Submission 81.

[33]      Confidential Supplementary Submission 156.1, pp. [1]–[2]. Ms Naomi Halpern provides another such example, who, by the end of 2008, found herself in substantial debt but with only $11,000 in superannuation. Proof Committee Hansard, 12 November 2014, p. 1.

[34]      Confidential Submission 128, p. 1.

[35]      See, for example, Submission 56, pp. [1]–[2].

[36]      Mr Mark Rantall, Proof Committee Hansard, 6 August 2015, p. 24.

[37]      Mr Mark Rantall, Proof Committee Hansard, 6 August 2015, p. 24.

[38]      Proof Committee Hansard, 6 August 2015, p. 25.

[39]      Proof Committee Hansard, 6 August 2015, p. 28.

[40]      Proof Committee Hansard, 6 August 2015, p. 28.

[41]      Confidential Submission 79, p. [1] and Confidential Submission 130, p. [1].

[42]      Minority Report by Senator Shayne Murphy to the Senate Economics Committee, Inquiry into mass marketed tax effective schemes and investor protection, Final report, February 2002, paragraph 1.125.

[43]      Senate Economics References Committee, Inquiry into mass marketed tax effective schemes and investor protection, Final Report, February 2002, paragraph 4.49.

[44]      ASIC, Report 17, Compliance with advice and disclosure obligations: Report on primary production schemes, February 2003, p. 4.

[45]      ASIC, Report 17, Compliance with advice and disclosure obligations: Report on primary production schemes, February 2003, p. 4.

[46]      ASIC, Report 17, Compliance with advice and disclosure obligations: Report on primary production schemes, February 2003, p. 17.

[47]      See for example, name withheld, Submission 44, p. 3; name withheld, Submission 53; Mr Bill Murrowood, Submission 112, p. 1; Grant and Karen Lillecrapp, Submission 109, p. [1].

[48]      Proof Committee Hansard, 12 November 2014, p. 27.

[49]      Submission to the Review of Non-Forestry Managed Investment Schemes, 12 September 2008, http://archive.treasury.gov.au/documents/1423/PDF/National_Farmers_Federation.PDF (accessed 23 November 2014).  The NFF indicated the MIS promoters were offering financial planners commissions of between 10 and 13 per cent.

[50]      Submission to the Review of Non-Forestry Managed Investment Schemes, 12 September 2008, p. 13, http://archive.treasury.gov.au/documents/1423/PDF/Adviser_Edge.pdf (accessed 23 November 2014).

[51]      Submission to the Review of Non-Forestry Managed Investment Schemes, 12 September 2008, p. 13, http://archive.treasury.gov.au/documents/1423/PDF/Adviser_Edge.pdf (accessed 23 November 2014).

[52]      Confidential Submission 36, p. [7].

[53]      Confidential Submission 37, p. 2.

[54]      Mr David Lorimer, Submission 55; name withheld, Submission 100, p. 9; and name withheld, Submission 78.

[55]      Submission 118, p. 6 (emphasis in original).

[56]      Mr David Lorimer, Submission 55.

[57]      Proof Committee Hansard, 4 August 2015, pp. 21 and 24. 

[58]      Proof Committee Hansard, 12 November 2014, pp. 42 and 43.

[59]      Proof Committee Hansard, 12 November 2014, p. 42.

[60]      Submission 138, p. 2.

[61]      Proof Committee Hansard, 12 November 2014, p. 13.

[62]      Replacement Explanatory Memorandum, Corporations Amendment (Further of Financial Advice Measures) Bill 2011, paragraphs 2.3 and 3.27.

[63]      Submission 136, p. 3.

[64]      Senate Economics References Committee, Inquiry into mass marketed tax effective schemes and investor protection, Final Report, February 2002, paragraph 4.39.

[65]      Name withheld, Submission 45, p. [1]; name withheld, Submission 62; Submission 89, p. [1]; name withheld, Submission 94, p. [2]; Mr Bill Murrowood, Submission 112; name withheld, Submission 121; Confidential Submission 36, p. [3]; Confidential Submission 39, p. 2; Confidential Submissions 81, 130, p. [1]; and Confidential Submission 140, p. 2. 

[66]      Submission 40, p. [2].

[67]      Submission 43, p. 2.

[68]      Annexure, Clarke v Great Southern Pty Ltd (recs & mgrs apptd) (in liq) [2014] VSC 334 (25 July 2014) [73] to Clarke (as trustee of the Clarke Family Trust) v Great Southern Finance Pty Ltd (recs & mgrs apptd) (in liq) [2014] VSC 516.

[69]      Name withheld, Submissions 151, p. 2. See also name withheld, Submission 152, p. 1 and Mr Shaun Ritchie, Submission 159, p. [1].

[70]      Name withheld, Submission 41, p. 3 and Mr Tyson O'Shannassy, Submission, 158, p. 3.

[71]      Submission 118, p. 2 (emphasis in original).

[72]      Submission 118, p. 6 (emphasis in original).

[73]      Submission 118, p. 6.

[74]      Name withheld, Submission 120, p. [1].

[75]      Confidential Submission 156, p. [5].

[76]      Name withheld, Submission 44, p. 3.

[77]      ASIC, confidential answer to written question on notice, No. 19, 2 October 2015.

[78]      ASIC, answer to written question on notice, No. 8, 2 October 2015.

[79]      Treasury, answer to written question on notice, No. 10, 8 October 2015.

Chapter 8

[1]        Mr Greg Tanzer, Proof Committee Hansard, Inquiry into the Scrutiny of Financial Advice, 7 July 2015, p. 24.

[2]        Submission 142, p. [3].

[3]        Senate Economics References Committee, Interest rates and informed choice in the Australian credit card market, December 2015, pp. 72–77.

[4]        Proof Committee Hansard, Senate Economics References Committee, Inquiry into matters relating to credit card interest rates, 27 August 2015, p. 43.

[5]        Senate Economics References Committee, Scrutiny of Financial Advice, Part 1—Land banking: A ticking time bomb, February 2016, chapters 3 and 4.

[6]        Submission 143, p. 4.

[7]        Revised Explanatory Memorandum, tabled 22 November.

[8]        Financial System Inquiry, Final Report, Commonwealth of Australia, November 2014, p. 217, http://fsi.gov.au/files/2014/12/FSI_Final_Report_Consolidated20141210.pdf (accessed 4 December 2014).

[9]        Tier 2 products are generally simpler and better understood than Tier 1. See ASIC, Regulatory Guide 146, Licensing: Training of financial product advisers, July 2012, http://download.asic.gov.au/media/1240766/rg146-published-26-september-2012.pdf (accessed 3 January 2016).

[10]      Senate Economics References Committee, Performance of the Australian Securities and Investments Commission, June 2014, recommendation 42, p. xxxi.

[11]      Senate Economics References Committee, Performance of the Australian Securities and Investments Commission, June 2014, recommendations 43 and 44, p. xxxi.

[12]      Senate Economics References Committee, Performance of the Australian Securities and Investments Commission, June 2014, recommendation 45, p. xxxii.

[13]      Senate Economics References Committee, Performance of the Australian Securities and Investments Commission, June 2014, recommendation 46, p. xxxii.

[14]      Financial System Inquiry, Final Report, Commonwealth of Australia, November 2014, pp. 217 and 222, http://fsi.gov.au/files/2014/12/FSI_Final_Report_Consolidated20141210.pdf (accessed 4 December 2014).

[15]      Financial System Inquiry, Final Report, Commonwealth of Australia, November 2014, p. 223, http://fsi.gov.au/files/2014/12/FSI_Final_Report_Consolidated20141210.pdf (accessed 4 December 2014).

[16]      Parliamentary Joint Committee on Corporations and Financial Services, Inquiry into proposals to lift the professional, ethical and education standards in the financial services industry, December 2014.

[17]      Australian Government, Improving Australia’s financial system, Government response to the Financial System, p. 21, http://treasury.gov.au/~/media/Treasury/Publications%20and%20Media/Publications/2015/Government%20response%20to%20the%20Financial%20System%20Inquiry/Downloads/PDF/Government_response_to_FSI_2015.ashx (accessed 26 October 2015).

[18]      Australian Government, Improving Australia’s financial system, Government response to the Financial System, p. 21, http://treasury.gov.au/~/media/Treasury/Publications%20and%20Media/Publications/2015/Government%20response%20to%20the%20Financial%20System%20Inquiry/Downloads/PDF/Government_response_to_FSI_2015.ashx (accessed 26 October 2015).

[19]      Australian Government, Improving Australia’s financial system, Government response to the Financial System, p. 21, http://treasury.gov.au/~/media/Treasury/Publications%20and%20Media/Publications/2015/Government%20response%20to%20the%20Financial%20System%20Inquiry/Downloads/PDF/Government_response_to_FSI_2015.ashx (accessed 26 October 2015).

[20]      Department of the Treasury, 'Raising professional Standards of Financial Advisers', 3 December 2015, http://www.treasury.gov.au/ConsultationsandReviews/Consultations/2015/Raising-professional-standards-of-financial-advisers (accessed 11 December 2015).

[21]      Financial System Inquiry, Final Report, Commonwealth of Australia, November 2014, p. 218, http://fsi.gov.au/files/2014/12/FSI_Final_Report_Consolidated20141210.pdf (accessed 4 December 2014).

[22]      Financial System Inquiry, Final Report, Commonwealth of Australia, November 2014, p. 218, http://fsi.gov.au/files/2014/12/FSI_Final_Report_Consolidated20141210.pdf (accessed 4 December 2014).

[23]      Submission 143, p. 4.

[24]      Senate Economics Legislation Committee, Estimates Hansard, 3 June 2015, p. 8.

[25]      Senate Economics References Committee, Performance of the Australian Securities and Investments Commission, June 2014, p. 391.

[26]      Senate Economics References Committee, Performance of the Australian Securities and Investments Commission, June 2014, p. 391.

[27]      Senate Economics References Committee, Performance of the Australian Securities and Investments Commission, June 2014, p. 391.

[28]      Senate Economics References Committee, Performance of the Australian Securities and Investments Commission, June 2014, p. 391.

[29]      Senate Economics References Committee, Performance of the Australian Securities and Investments Commission, June 2014, recommendation 47, p. 394.

[30]      Financial System Inquiry, Final Report, Commonwealth of Australia, November 2014, p. 218, http://fsi.gov.au/files/2014/12/FSI_Final_Report_Consolidated20141210.pdf (accessed 4 December 2014).

[31]      Financial System Inquiry, Final Report, Commonwealth of Australia, November 2014, p. 220, http://fsi.gov.au/files/2014/12/FSI_Final_Report_Consolidated20141210.pdf (accessed 4 December 2014).

[32]      Industry Super Australia, Submission 136, p. 4.

[33]      Confidential Submission 92.

[34]      Confidential Submission 38, p. 1.

[35]      Mr Holt was a director and authorised representative of Holt Norman & Co Pty Ltd and the Responsible Officer of Holt Norman & Co's AFS licence. ASIC cancelled the AFS licence of Holt Norman & Co on 19 September 2012. ASIC found that Mr Holt had failed: to have a reasonable basis for the advice he gave to retail clients; to meet his disclosure obligations to disclose the costs and benefits that may be lost in switching a client's superannuation; and to ensure the business maintained professional indemnity insurance. ASIC, 12-236MR, 'ASIC bans Victorian financial adviser for failing to comply with financial services laws', http://asic.gov.au/about-asic/media-centre/find-a-media-release/2012-releases/12-236mr-asic-bans-victorian-financial-adviser-for-failing-to-comply-with-financial-services-laws/ (accessed 17 August 2015).

[36]      Confidential Submission 37, p. 3; name withheld, Submission 41, p. 3.

[37]      Confidential Submission 37, p. 3.

[38]      Ms Michelle Johnson, Submission 139, p. [1].

[39]      Name withheld, Submission 68, p. [2].

[40]      Name withheld, Submission 56, p. [4]. The author of this submission noted: 'Steve Navra, after the first successful FOS claim against him immediately declared bankruptcy, relocated to Melbourne and is now practicing "wealth education" seminars down there. Why is this allowed to continue?'

[41]      ASIC, confidential answer to written question on notice, 2 October 2015.

[42]      Submission 136, p. 4.

[43]      Senate Economics References Committee, Performance of the Australian Securities and Investments Commission, June 2014, paragraphs 24.62 and 24.63.

Chapter 9 - Product developers and promoters

[1]        Name withheld, Submission 184, p. 4.

[2]        Submission 161, p. 4.

[3]        Submission 161, p. 4.

[4]        Mr Mark Rantall, Proof Committee Hansard, 6 August 2015, p. 24.

[5]        Submission 68, p. [3]. See chapter 6 for a thorough account of retail investors and their experience with MIS type schemes.

[6]        See, for example, Rick Lacey, Alistair Watson and John Crase, Economic effects of income-tax law on investments in Australian agriculture with particular reference to new and emerging industries, Rural Industries Research and Development Corporation, RIRDC Publication No 05/078, RIRDC Project No AWT–1A, January 2006, p. 19.

[7]        Submission 34, paragraph 27.

[8]        Submission 34, paragraph 32.

[9]        The Law Reform Commission and the Companies and Securities Advisory Committee, Collective Investments: Other People's Money, ALRC Report No. 65, Vol 1, 1993, p. 9.

[10]      The Law Reform Commission and the Companies and Securities Advisory Committee, Collective Investments: Other People's Money, ALRC Report No. 65, Vol 1, 1993, p. 9.

[11]      The Law Reform Commission and the Companies and Securities Advisory Committee, Collective Investments: Other People's Money, ALRC Report No. 65, Vol 1, 1993, p. 10.

[12]      The Law Reform Commission, and the Companies and Securities Advisory Committee, Report Collective Investments: Other People's Money, ALRC Report No. 65, Vol. 1, 1993, pp. 10–11.

[13]      The definition of financial product includes an interest in a registered scheme; a legal or equitable right or interest in such an interest or an option to acquire, by way of issue, an interest or legal or equitable right as mentioned. For the more specific and detailed conditions governing disclosure see Chapter 7, Part 7.9, Division 2  of the Corporations Act 2001.

[14]      ASIC, Regulatory Guide 56, Prospectuses, (updated February 2000), RG 56, paragraph RG 125.

[15]      ASIC, Regulatory Guide 56, Prospectuses, (updated February 2000), RG 56, paragraph RG 56.18.

[16]      ASIC, answer to question on notice, No. 3, 2 October 2015.  

[17]      Corporations Act 2001, s 1012A. Sections 1012A, 1012B and 1012C of the act establish the obligation to give a Product Disclosure Statement (PDS) when personal advice is given recommending a particular financial product; when an issue of, or an offer to issue, a financial product is made; or when an offer to sell a financial product is made.

[18]      Corporations Act 2001, ss 1012J and 1013C.

[19]      Corporations Act 2001, s 1013F.

[20]      Corporations Act 2001, ss 1013D and 1013E.

[21]      Mr Paul Eastment, Proof Committee Hansard, 14 October 2015, pp. 24–25.

[22]      Mr Greg Tanzer, Proof Committee Hansard, 14 October 2015, p. 24. Also see discussion in chapter 4 on ASIC and prospectus, paragraphs 4.38–4.43.

[23]      Corporations Act 2001, para 1013D(1)(e).

[24]      ASIC, Report 23, A model for fee disclosure in product disclosure statements for investment products, July 2003, paragraph 5.11.

[25]      ASIC, Report 23, A model for fee disclosure in product disclosure statements for investment products, July 2003, paragraph 3.9.

[26]      ASIC, Report 23, A model for fee disclosure in product disclosure statements for investment products, July 2003, paragraphs 5.11 and 5.16.

[27]      See, for example, AgriWealth, Submission 138, p. 2.

[28]      See, for example, Mr Peter Mazzucato, Submission 40, p. [2].

[29]      Mr. Stefan Kaiser, Submission 107, p. 4.

[30]      Name withheld, Submission 162.

[31]      Name withheld, Submission 56, p. [2].

[32]      Submission 34, paragraph 52.

[33]      Proof Committee Hansard, 4 August 2015, p. 23.

[34]      Name withheld, Submission 73.

[35]      Corporations and Markets Advisory Committee, The establishment and operation of managed investment schemes, Discussion paper, March 2014, p. 189.

[36]      Corporations and Markets Advisory Committee, The establishment and operation of managed investment schemes, Discussion paper, March 2014, p. 190.

[37]      Patrick Mackarness and B Malcolm, 'Public policy and managed investment schemes for hardwood plantations', School of Agriculture and Food Systems, The University of Melbourne, Extension Farming Systems Journal, volume 2, number 1, p. 105.

[38]      See, for example, Senate Economics References Committee, Inquiry into mass marketed tax effective schemes and investor protection, Final report, February 2002, paragraph 4.64.

[39]      Senate, Rural and Regional Affairs and Transport References Committee, Australian forest plantations: A review of Plantations for Australia: The 2020 Vision, September 2004, paragraphs 3.81–3.83.

[40]      Judith Ajani, 'Climate change policy distortions in the wood and food market', The Australian National University, Contributed paper to the Australian Agricultural and Resource Economics Society National Conference 2010, 8–12 February, p. 15, in Submission 26.

[41]      See, for example, submissions to the Review of taxation treatment of plantation forestry from Sam Paton & Associates Pty Ltd, http://archive.treasury.gov.au/documents/1000/PDF/042_Paton.PDF (accessed 1 May 2015) and Evan D. Shield, http://archive.treasury.gov.au/documents/1000/PDF/002_Evan_Shield_1&2.pdf (accessed 1 May 2015).

[42]      Rick Lacey, Alistair Watson and John Crase, Economic effects of income-tax law on investments in Australian agriculture with particular reference to new and emerging industries,  Rural Industries Research and Development Corporation, RIRDC Publication No 05/078, RIRDC Project No AWT–1A, January 2006, p. 48.

[43]      Proof Committee Hansard, 4 August 2015, pp. 1 and 4.

[44]      Submission to the Review of Non-Forestry Managed Investment Schemes, 12 September 2008, p. 4, http://archive.treasury.gov.au/documents/1423/PDF/National_Farmers_Federation.PDF (accessed 23 November 2014).

[45]      Submission to the Review of Non-Forestry Managed Investment Schemes, 12 September 2008, p. 4, http://archive.treasury.gov.au/documents/1423/PDF/National_Farmers_Federation.PDF (accessed 23 November 2014).

[46]      Submission to the Review of Non-Forestry Managed Investment Schemes, 12 September 2008, p. [1], http://archive.treasury.gov.au/documents/1423/PDF/Victorian_Farmers.pdf (accessed 23 November 2014).

[47]      Judith Ajani, Managed investment schemes, tax deductibility and future plantation wood supply, Australia’s Transition from Native Forests to Plantations: The Implications for Woodchips, Pulp mills, Tax Breaks and Climate Change, ANU Press, nd (2008), http://press.anu.edu.au/agenda/015/03/mobile_devices/ch02s10.html (accessed 24 November 2014).

[48]      ASIC, Submission 58 to the Parliamentary Joint Committee on Corporations and Financial Services, Inquiry into Financial Products and Services in Australia, August 2009, paragraph 209.

[49]      Submission 135, p. 8.

[50]      Proof Committee Hansard, 12 November 2014, p. 21.

[51]      Proof Committee Hansard, 12 November 2014, p. 22.

[52]      Proof Committee Hansard, 12 November 2014, p. 18.

[53]      Proof Committee Hansard, 5 August 2015, p. 15.

[54]      Woodcroft-Brown v Timbercorp Securities Ltd [2013] VSCA 284 (10 October 2013) [6]

[55]      Woodcroft-Brown v Timbercorp Securities Limited (in liq) [2011] VSC 427 (1 September 2011) [24]–[26].

[56]      Woodcroft-Brown v Timbercorp Securities Limited (in liq) [2011] VSC 427 (1 September 2011).

[57]      Woodcroft-Brown v Timbercorp Securities Limited (in liq) [2011] VSCA 284 (10 October 2013).

[58]      Clarke v Great Southern Finance Pty Ltd (recs & mgrs apptd) (in liq) [2014] VSC 334 (11 December 2014) [6].

[59]      Annexure, Clarke v Great Southern Pty Ltd (recs & mgrs apptd) (in liq) [2014] VSC 334 (25 July 2014) [13] to Clarke (as trustee of the Clarke Family Trust) v Great Southern Finance Pty Ltd (recs & mgrs apptd) (in liq) [2014] VSC 516.

[60]      Annexure, Clarke v Great Southern Pty Ltd (recs & mgrs apptd) (in liq) [2014] VSC 334 (25 July 2014) [18] to Clarke (as trustee of the Clarke Family Trust) v Great Southern Finance Pty Ltd (recs & mgrs apptd) (in liq) [2014] VSC 516.

[61]      Bendigo and Adelaide Bank, response to Submissions 52 et al, dated 24 December 2014, p. [4 and 5].

[62]      Christine Brown, Colm Trusler and Kevin Davis, 'Managed Investment Scheme Regulation: Lessons from the Great Southern Failure', 29 January 2010, p. 11, http://kevindavis.com.au/secondpages/workinprogress/Great_Southern_JASSA-v2-28-1-10-3.pdf (9 December 2014).

[63]      Christine Brown, Colm Trusler and Kevin Davis, 'Managed Investment Scheme Regulation: Lessons from the Great Southern Failure', 29 January 2010, p. 11, http://kevindavis.com.au/secondpages/workinprogress/Great_Southern_JASSA-v2-28-1-10-3.pdf (9 December 2014).

[64]      Tomasetti v Brailey [2012] NSWCA 399 (11 December 2012) [34] [393] and Tomasetti v Brailey [2011] NSWSC 1446 (17 November 2011) [393].

[65]      Annexure, Clarke v Great Southern Pty Ltd (recs & mgrs apptd) (in liq) [2014] VSC 334 (25 July 2014) [60] to Clarke (as trustee of the Clarke Family Trust) v Great Southern Finance Pty Ltd (recs & mgrs apptd) (in liq) [2014] VSC 516.

[66]      Christine Brown, Colm Trusler and Kevin Davis, 'Managed Investment Scheme Regulation: Lessons from the Great Southern Failure', January 29, 2010, p. 11, http://kevindavis.com.au/secondpages/workinprogress/Great_Southern_JASSA-v2-28-1-10-3.pdf (9 December 2014).

[67]      Submission 136, p. 3.

[68]      Submission 136, p. 4.

[69]      Submission 143, pp. 3 and 4.

[70]      Garry T Bigmore QC and Simon Rubenstein, 'Rights of Investors in Failed or Insolvent Managed Investment Schemes', in Stewart J Maiden, (ed), Insolvent Investments, LexisNexis Butterworths, 2015, pp. 237–238.

[71]      Garry T Bigmore QC and Simon Rubenstein, 'Rights of Investors in Failed or Insolvent Managed Investment Schemes', in Stewart J Maiden, (ed), Insolvent Investments, LexisNexis Butterworths, 2015, p. 238.

[72]      ASIC, answer to question on notice, No. 3, 2 October 2015, p. 28.

[73]      ASIC, answer to question on notice, No. 3, 2 October 2015, p. 28.

[74]      ASIC, answer to question on notice, No. 3, 2 October 2015, p. 27.

[75]      Government response, The House of Representatives Standing Committee on Agriculture, Resources, Fisheries and Forestry, Seeing the forest through the trees: Inquiry into the future of the Australian Forestry Industry, June 2013, p. 12, http://www.agriculture.gov.au/SiteCollectionDocuments/about/obligations/reports-tabled-in-parliament/inquiry-into-the-future-of-the-australian-forestry-industry.pdf (accessed 22 September 2015).

[76]      Government response, The House of Representatives Standing Committee on Agriculture, Resources, Fisheries and Forestry, Seeing the forest through the trees: Inquiry into the future of the Australian Forestry Industry, June 2013, p. 12, http://www.agriculture.gov.au/SiteCollectionDocuments/about/obligations/reports-tabled-in-parliament/inquiry-into-the-future-of-the-australian-forestry-industry.pdf (accessed 23 September 2015). See also, ASIC, Regulatory Guide 232, Agribusiness managed investment schemes: Improving disclosure for retail investors, January 2012, http://download.asic.gov.au/media/1246956/rg232.pdf (accessed 23 September 2015).

[77]      Mr Neil Kendall, Proof Committee Hansard, 6 August 2015, p. 27.

[78]      Robert and Lynne Powell, Submission 5; Mr Anthony Jayantha, Submission 29; name withheld, Submission 89, p. [1]; name withheld, Submission 53; name withheld, Submission 56; Kevin and Cristina Lee, Submission 174. See also, ASIC, Report 17, Compliance with advice and disclosure obligations: Report on primary production schemes, February 2003, p. 19. One investor referred to 'inspiring seminars and "hype"', Mr David Abraham, Submission 64, p. [1].

[79]      Name withheld, Submission 56, p. [3]. See also Mr McShane who referred to brochures and of attending very professional and well conducted seminars, which looked 'fantastic'. He expounded on the beauty of the scheme and how well it worked. Proof Committee Hansard, 6 August 2015, p. 10.

[80]      Name withheld, Submission 96, p. [1].

[81]      See, for example, Mr Andrew Reibelt, Submission 104.

[82]      Mr Michael McLeod, Submission 87.

[83]      Name withheld, Submission 162.

[84]      Confidential Submission 140, p. 1.

[85]      Confidential Submission 92, p. [2] (emphasis in original).

[86]      Confidential Submission 36, p. [4].

[87]      Confidential Submission 36, p. [4].

[88]      Financial System Inquiry, Final Report, Commonwealth of Australia, November 2014, p. 214, http://fsi.gov.au/files/2014/12/FSI_Final_Report_Consolidated20141210.pdf (accessed 4 December 2014).

[89]      Financial System Inquiry, Final Report, Commonwealth of Australia, November 2014, p. 216, http://fsi.gov.au/files/2014/12/FSI_Final_Report_Consolidated20141210.pdf (accessed 4 December 2014).

[90]      See, for example, observations by the Financial Planners Association, Submission 161, p. 7 and quoted later in this report at chapter 14, paragraph 14.6.

Chapter 10 - General advice

[1]        Financial Planning Association, Submission 161, p. 3.

[2]        Corporations Act 2001, s 766B(2).

[3]        Corporations Act 2001, ss 766B(3).

[4]        ASIC, Regulatory Guide 175, Licensing: Financial product advisers—conduct and disclosure, October 2013, paragraph RG 175.45.

[5]        Corporations Act 2001, ss 766B(4).

[6]        ASIC, Regulatory Guide 244, Giving information, general advice and scaled advice, December 2012, paragraph RG 244.43.

[7]        ASIC, Regulatory Guide 175, Licensing: Financial product advisers—conduct and disclosure, October 2013, p. 98.

[8]        Corporations Act 2001, s 949A.

[9]        ASIC, Regulatory Guide 244, Giving information, general advice and scaled advice, December 2012, RG 244.44, http://download.asic.gov.au/media/1247129/rg-244.pdf (accessed 20 August 2015).

[10]      ASIC, answer to questions on notice, No. 6, p. 16, 2 October 2015.

[11]      Senate Economics Legislation Committee, Corporations Amendment (Streamlining of Future of Financial Advice Bill 2014 [Provisions], June 2014.

[12]      Committee Hansard, 22 May 2014, p. 19.

[13]      Committee Hansard, 22 May 2014, p. 17.

[14]      Senate Economics Legislation Committee, Corporations Amendment (Streamlining of Future of Financial Advice Bill 2014 [Provisions], June 2014, p. 77.

[15]      Australian Government, Financial System Inquiry, Interim Report, July 2014, p. 3-73.

[16]      Australian Government, Financial System Inquiry, Interim Report, July 2014, p. 3-74.

[17]      Australian Bankers' Association, Response to Interim Report, Submission to the Financial System Inquiry, August 2014, pp. 55 and 58, http://fsi.gov.au/files/2014/08/Australian_Bankers_Association_2.pdf (accessed 10 July 2015).

[18]      Submission 161, p. 3.

[19]      Submission 161, p. 3.

[20]      Australian Government, Financial System Inquiry, Final Report, November 2014, p. 271.

[21]      Australian Government, Financial System Inquiry, Final Report, November 2014, Recommendation 40, pp. 271–272.

[22]      Australian Government, Improving Australia’s financial system, Government response to the Financial System, p. 22, http://treasury.gov.au/~/media/Treasury/Publications%20and%20Media/Publications/2015/Government%20response%20to%20the%20Financial%20System%20Inquiry/Downloads/PDF/Government_response_to_FSI_2015.ashx (accessed 26 October 2015).

[23]      See paragraphs 5.65, 5.72, 5.76 and 9.65–9.70.

[24]      Submission 136, p. 3.

[25]      Senate Economics References Committee, Scrutiny of Financial Advice, Part 1—land banking: a ticking time bomb, February 2016, paragraphs 3.53–3.55 and 8.80–8.90.

[26]      See paragraph 9.65, which noted Mr Steve Navra's participation at seminars promoting an agribusiness MIS.

[27]      Submission 161, p. 3.

[28]      Submission 161, p. 3.

[29]      Submission 161, p. 5.

[30]      Submission 161, p. 4.

[31]      Judith Ajani, 'Climate change policy distortions in the wood and food market', Contributed paper to the Australian Agricultural and Resource Economics Society National Conference 2010, Adelaide Convention Centre, 8–2 February 2010 in Dr Judith Ajani, Submission 26, p. 13.

[32]      See paragraphs 9.26–9.35.

[33]      Great Southern Limited, submission to the Review of Non-Forestry Managed Investment Schemes, September 2008, p. 11, http://archive.treasury.gov.au/documents/1423/PDF/Great_Southern_Limited.PDF (accessed 7 September 2015).

[34]      Proof Committee Hansard, 12 November 2014, p. 23.

[35]      Proof Committee Hansard, 12 November 2014, p. 24.

[36]      Proof Committee Hansard, 6 August 2015, p. 28.

[37]      ASIC, Regulatory Guide 79, Research report providers: Improving the quality of investment research, December 2012, paragraph RG 79.2 and a joint report by the Treasury and the Australian Securities and Investments Commission, Review of credit rating agencies and research houses, October 2008, paragraph 94, http://download.asic.gov.au/media/1343114/rep143.pdf (accessed 1 September 2015).

[38]      ATO, answer to questions on notice, No. 4, received 8 October 2015; Mr Tim Dyce, Proof Committee Hansard, 14 October 2015, p. 11.

[39]      ASIC, answer to questions on notice, No. 3, 2 October 2015, p. 28.

[40]      Parliamentary Joint Committee on Corporations and Financial Services, Inquiry into aspects of agribusiness managed investment schemes, September 2009, p. 58.

[41]      Submission 34, paragraph 151.

[42]      Submission 145, paragraph 66.

[43]      Proof Committee Hansard, 5 August 2015, p. 24.

[44]      Proof Committee Hansard, 4 August 2015, p. 12.

[45]      Proof Committee Hansard, 4 August 2015, p. 12.

[46]      Proof Committee Hansard, 4 August 2015, p. 22.

[47]      Proof Committee Hansard, 4 August 2015, p. 23.

[48]      Proof Committee Hansard, 5 August 2015, p. 5.

[49]      Submission 149, p. 3.

[50]      Proof Committee Hansard, 12 November 2014, p. 22.

[51]      Proof Committee Hansard, 12 November 2014, p. 23.

[52]      Proof Committee Hansard, 12 November 2014, p. 24.

[53]      Proof Committee Hansard, 12 November 2014, p. 24.

[54]      Proof Committee Hansard, 12 November 2014, p. 24.

[55]      Proof Committee Hansard, 12 November 2014, p. 42.

[56]      Submission 161, p. 5.

[57]      Submission 161, p. 5.

[58]      Submission 161, p. 4.

[59]      ASIC, Regulatory Guide 79, Research report providers: Improving the quality of investment research, December 2012, paragraph RG 79.44, http://download.asic.gov.au/media/1239863/rg79-published-10-december-2012.pdf (accessed 7 September 2015).

[60]      The International Organization of Securities Commissions' (IOSCO) Statement of Principles for Addressing Sell-side Securities Analyst Conflicts of Interest, http://www.iosco.org/library/pubdocs/pdf/IOSCOPD150.pdf (7 September 2015).

[61]      The International Organization of Securities Commissions' (IOSCO) Statement of Principles for Addressing Sell-side Securities Analyst Conflicts of Interest, p. 10, http://www.iosco.org/library/pubdocs/pdf/IOSCOPD150.pdf (7 September 2015).

[62]      The International Organization of Securities Commissions' (IOSCO) Statement of Principles for Addressing Sell-side Securities Analyst Conflicts of Interest, p. 10, http://www.iosco.org/library/pubdocs/pdf/IOSCOPD150.pdf (7 September 2015).

[63]      ASIC, Regulatory Guide 79, Research report providers: Improving the quality of investment research, December 2012, paragraph RG 79.176, http://download.asic.gov.au/media/1239863/rg79-published-10-december-2012.pdf (accessed 1 September 2015).

[64]      ASIC, answer to questions on notice, No. 3, 2 October 2015, p. 31. ASIC provided a comprehensive answer to this matter of research houses and expert advice.

[65]      ASIC, answer to questions on notice, No. 3, 2 October 2015, p. 32.

Chapter 11 - Role of banks

[1]        Name withheld, Submission 63, p. [2]. It should be noted that Bendigo and Adelaide Bank responded to this submission as well as a number of others who criticised the bank.

[2]        Miles and Marion Blackwell, Submission 173, p. 1.

[3]        Submission 65, p. 1.

[4]        Name withheld, Submission 56, pp. [4]–[5].

[5]        Name withheld, Supplementary Submission 56.1.

[6]        Name withheld, Supplementary Submission 52, p. [2].

[7]        Name withheld, Submission 52, p. 1.

[8]        Name withheld, Submission 52, p. 1.

[9]        Name withheld, Submission 100, pp. 11–12.

[10]      Name withheld, Submission 91, p. [2].

[11]      Name withheld, Submission 91, p. [2].

[12]      Name withheld, Submission 91, p. [2].

[13]      Submission 118, p. 7.

[14]      Submission 25, p. 1.

[15]      Submission 16, p. 1.

[16]      Name withheld, Supplementary Submission 186.1, p. 2.

[17]      Name withheld, Supplementary Submission 186.1, p. 2.

[18]      Submission 145, p. 8.

[19]      Submission 145, p. 11.

[20]      Submission 145, p. 10.

[21]      Submission 145, p. 11.

[22]      Submission 145, p. 11.

[23]      Submission 145, p. 11.

[24]      The collapse of Lehman Brothers was a very large and significant corporate failing that unsettled world markets and marked a new phase in the global financial crisis.

[25]      Submission 145, pp. 27–28.

[26]      Submission 145, p. 28.

[27]      Mr Mark Korda, correspondence to committee, 5 November 2014.

[28]      Mr Mark Korda, correspondence to committee, 5 November 2014.

[29]      Mr Mark Korda, correspondence to committee, 5 November 2014.

[30]      Proof Committee Hansard, 6 August 2015, p. 14.

[31]      Name withheld, Submission 42, p. 5. See also, name withheld, Submission 53, p. 1 and Submission 54, p. [1].

[32]      Mr Tim Stanford, Submission 17. See Dinu Ekanayake, Submission 21, p. 1.

[33]      Submission 17, p. 1.

[34]      Submission 17, p. 1.

[35]      Name withheld, Submission 18, p. 1.

[36]      Submission 145, p. 28.

[37]      Additional information provided by KordaMentha, 4 December 2014, p. 2.

[38]      For detailed information see paragraph 8.37, and accompanying footnote 32.

[39]      Proof Committee Hansard, 6 August 2015, p. 53. KordaMentha approached Ms Catriona Lowe in November 2014 to discuss the role of the IHA. Ms Lowe commenced her role as IHA in December 2014. Ms Catriona Lowe, Submission 200, p. 1.

[40]      Proof Committee Hansard, 6 August 2015, p. 15.

[41]      Ms Catriona Lowe, Submission 200, paragraph 19.

[42]      Ms Catriona Lowe, Submission 200, paragraphs 21–22.

[43]      Mr Mark Korda, Proof Committee Hansard, 6 August 2015, pp. 15 and 19.

[44]      Proof Committee Hansard, 6 August 2015, p. 14.

[45]      Proof Committee Hansard, 6 August 2015, p. 14.

[46]      Proof Committee Hansard, 6 August 2015, p. 16.

[47]      Proof Committee Hansard, 6 August 2015, p. 20.

[48]      Ms Catriona Lowe, Submission 200, paragraph 49.

[49]      Ms Catriona Lowe, Submission 200, paragraphs 12–18.

[50]      Ms Susan Henry, Chair, HNAB-AG, correspondence to Senate Economics References Committee, 27 October 2015, pp. [1]–[2].

[51]      Ms Susan Henry, Chair, HNAB-AG,  correspondence to Senate Economics References Committee, 27 October 2015, p. [1].

[52]      Additional information, Mr Mark Korda, 23 December 2015, paragraph 30.

[53]      Additional Information, Mr Mark Korda, 23 December 2015, paragraph 24.

[54]      Additional Information, Mr Mark Korda, 23 December 2015, paragraph 30.

[55]      Additional information, Mr Mark Korda, 23 December 2015, paragraph, 31.

[56]      Ms Catriona Lowe, Submission 200, paragraph 29. Ms Lowe's answer contains far more detail on the reasons for the delay. 

[57]      Ms Catriona Lowe, Submission 200, paragraph 28.

[58]      Ms Catriona Lowe, Submission 200, paragraph 38.

[59]      Ms Susan Henry, Chair, HNAB-AG, correspondence to Senate Economics References Committee, 27 October 2015, p. 18.

[60]      Ms Susan Henry, Chair, HNAB-AG, correspondence to Senate Economics References Committee, 27 October 2015, pp. 18–19.

[61]      Additional information, Mr Mark Korda, 23 December 2015, paragraphs 20–22.

[62]      Ms Catriona Lowe, Submission 200, paragraph 50.

[63]      Ms Catriona Lowe, Submission 200, paragraphs 51–52.

[64]      Ms Catriona Lowe, Submission 200, paragraph 55.

[65]      Ms Catriona Lowe, Submission 200, paragraph 55.

[66]      Ms Catriona Lowe, Submission 200, paragraph 56.

[67]      Ms Susan Henry, Chair, HNAB-AG, correspondence to Senate Economics References Committee, 27 October 2015, p. 1.

[68]      Additional information, Mr Mark Korda, 23 December 2015, paragraph 14.

[69]      Additional information, Mr Mark Korda, 23 December 2015, paragraph 15

[70]      Additional information, Mr Mark Korda, 23 December 2015, paragraph 16.

[71]      Additional information, Mr Mark Korda, 23 December 2015, paragraph 16.

[72]      Ms Susan Henry to Senate Economics References Committee, 12 November 2015, p. 2.

[73]      Ms Catriona Lowe, Submission 200, paragraphs 33–36.

[74]      Ms Catriona Lowe, Submission 200, paragraph 2.

[75]      Ms Catriona Lowe, Submission 200, paragraph 25.

[76]      Ms Catriona Lowe, Submission 200, paragraph 41.

[77]      Ms Catriona Lowe, Submission 200, paragraph 42.

[78]      Ms Catriona Lowe, Submission 200, paragraph 44.

[79]      Clarke v Great Southern Finance Pty Ltd (recs & mgrs apptd) [2012] VSC 260 (20 June 2012), [3]–[5].

[80]      Javelin purchased certain other loans from GSF.

[81]      Bendigo and Adelaide Bank, response to Submissions 52, 63, 175 and 176, p. [21].

[82]      Bendigo and Adelaide Bank, response to Submissions 52, 63, 175 and 176, p. [12].

[83]      Bendigo and Adelaide Bank, response to Submissions 52, 63, 175 and 176, p. [12].

[84]      Bendigo and Adelaide Bank, response to Submissions 52, 63, 175 and 176, p. [12].

[85]      See Deed of Settlement proposed by Liquidators, May 2014; and name withheld, Submission 53, p. 1.

[86]      Bendigo and Adelaide Bank, response to Submissions 52, 63, 175 and 176, p. [13].

[87]      Bendigo and Adelaide Bank, response to Submissions 52, 63, 175 and 176, p. [17]

[88]      Bendigo and Adelaide Bank, response to Submissions 52, 63, 175 and 176, p. [14].

[89]      Name withheld, Submission 94, p. [3].

[90]      Bendigo and Adelaide Bank, answer to question on notice, hearing on 6 August 2015 (received 31 August 2015).

[91]      Bendigo and Adelaide Bank, answer to question on notice, hearing on 6 August 2015 (received 31 August 2015).

[92]      Cited in Senate Economics References Committee, Performance of the Australian Securities and Investments Commission, June 2014, paragraph 5.60.

[93]      ASIC, Credit licensing: Responsible lending conduct, Regulatory Guide 209, September 2013, p. 4.

[94]      See Senate Economics References Committee, Performance of the Australian Securities and Investments Commission, June 2014, paragraph 6.9; Consumer Action Law Centre, Additional Information 8, p. 1 to the inquiry into the performance of the Australian Securities and Investments Commission. For non-ADIs, the responsible lending obligations came into effect on 1 July 2010 and for ADIs on 1 January 2011. Being banks and mutuals, ADIs had a pre‑existing code of practice, which had a similar obligation.

[95]      Submission 34, paragraph 112.

[96]      ASIC, answer to questions on notice, No. 3, 2 October 2015, p. 9.

[97]      Submission 34, paragraph 113.

[98]      Submission 34, paragraph 115.

[99]      Submission 34, paragraph 114.

[100]    National Consumer Credit Protection Amendment (Credit Reform Phase 2) Bill 2012, Exposure draft, http://www.treasury.gov.au/ConsultationsandReviews/Consultations/2012/Credit-Reform-Phase-2-Bill-2012 (accessed 23 September 2015).

[101]    Submission 34, paragraph 116. See Department of the Treasury, National Credit Reform, Enhancing confidence and fairness in Australia's credit law, Green Paper, July 2010, http://archive.treasury.gov.au/documents/1852/PDF/National_Credit_Reform_Green_Paper.pdf and National Consumer Credit Protection Amendment (Credit Reform Phase 2) Bill 2012, Exposure draft, http://www.treasury.gov.au/ConsultationsandReviews/Consultations/2012/Credit-Reform-Phase-2-Bill-2012 (accessed 23 September 2015).

[102]    ASIC, answer to questions on notice, No. 3, 2 October 2015, p. 9.

[103]    ASIC, answer to questions on notice, No. 3, 2 October 2015, p. 6.

[104]    Christine Brown, Colm Trusler and Kevin Davis, 'Managed Investment Scheme Regulation: Lessons from the Great Southern Failure', 29 January 2010, p. 10, http://kevindavis.com.au/secondpages/workinprogress/Great_Southern_JASSA-v2-28-1-10-3.pdf (accessed 9 December 2014).

[105]    See, for example, following chapter, paragraphs 12.2–12.12.

Chapter 12 - Class actions and legal advice to investors

[1]        Robert and Lynne Powell, Submission 5.

[2]        Ms Barbara Gray, Submission 54, p. 1; and Mr Mark Laszczuk, Submission 157, p. [1]. Submissions 68, p. [1]; Submission 104, p. 1; Submission 131 and Submission 153, p. [2]. Confidential Submissions 88, 116, p. 1; Confidential Submission 140, p. 1; Confidential Submission 155.

[3]        Confidential Submission 141, p. 1.

[4]        Ms Barbara Gray, Submission 54, p. [1]; Submission 55, p. 1; Submission 66, p. 1; Submission 72, p. 1; Submission 74, p. 3; name withheld Submission 96, p. 1; Submission 109, p. 2; Submission 110, p. 1; Submission 119,  p. [2]; Confidential Submission 130, p. 1. See also name withheld, Submission 62, p. 1—they owe $270,000 which is growing each month with a penalty interest rate of 13.2% from an initial $100,000 loan. Also Confidential Submission 140 and Confidential Submission 141.

[5]        Submission 2, p. 1.

[6]        Name withheld, Submission 97, p. [2]; name withheld, Submission 94, p. [1] and Mr Mark Laszczuk, Submission 157, p. [1]. Confidential Submission 36, p. [4];

[7]        See, for example, name withheld, Submission 75, p. [1]; Mr Con Solakidis, Submission 119, p. [2]; Confidential Submission 124, pp. 1–2. Mr Bernard Kelly, Proof Committee Hansard, 12 November 2014, p. 7.

[8]        Bendigo and Adelaide Bank, response to Submissions 52, 63, 175 and 176, dated 24 December 2014, p. [16].

[9]        According to M+K, as at 31 May 2010, it was acting for over 2,400 Timbercorp clients, with over 2,100 of these participating in the class action; and over 1,600 Great Southern investors. M+K submission to Consultation Paper 133: Agribusiness Managed Investment Schemes: Improving Disclosure for Retail Investors, 31 May 2010, paragraph 3.

[10]      M+K submission to Consultation Paper 133: Agribusiness Managed Investment Schemes: Improving Disclosure for Retail Investors, 31 May 2010, paragraph 5.

[11]      See paragraphs 9.36–9.46 and 11.70.

[12]      Name withheld, Submission 33, p. [1].

[13]      Andigone Aguilar, Submission 50. See also, Submission 44, p. 1.

[14]      Submission 40, p. [2].

[15]      Confidential Submission 37, p. 2. Also Mr Mark Laszczuk, Submission 157.

[16]      Name withheld, Submission 75, p. [1].

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

[18]      Name withheld, Submission 102, p. [1].

[19]      ANZ, answer to question on notice, No. 3, taken on 6 August 2015.

[20]      KordaMentha, additional Information, dated 4 December 2014, p. 2.

[21]      Response from Bendigo and Adelaide Bank, dated 24 December 2014, p. [16].

[22]      Confidential correspondence to committee, dated 19 October 2014, p. [2].

Chapter 13 -  

[1]        The Hon Peter Dutton, Minister for Revenue and the Assistant Treasurer, Media release, No. 007, Tuesday, 6th February 2007, 'Non-Forestry Managed Investment Schemes', http://ministers.treasury.gov.au/DisplayDocs.aspx?doc=pressreleases/2007/007.htm&pageID=003&min=pcd&Year=&DocType=0 (accessed 21 November 2014). See Australian Forest Products Association, Submission 126, pp. 6–7.

[2]        See, for example, CPA, Submission 142, p. [1] and ANZ, Submission 145, paragraph 18. The ANZ referred to 'drought, a change in how some of these schemes were assessed by the Australian Tax Office (ATO) in 2007 (the ATO ruling was later overturned by the Courts), and the onset of the global financial crisis'.

[3]        Additional information, KordaMentha, 4 December 2012, paragraphs 9 and 26.

[4]        Name withheld, Submission 31, p. [1].

[5]        See Tracy Bramwell and Peter Chudleigh, The Impact of Tax Driven Financial Investment on New Industry Development, A report for the Rural Industries Research and Development Corporation, RIRDC Publication No 00/14, RIRDC Project No AGT–3A, February 2000, p. 2, https://rirdc.infoservices.com.au/items/00-014, (accessed 5 December 2014).

[6]        Tracy Bramwell and Peter Chudleigh, The Impact of Tax Driven Financial Investment on New Industry Development, A report for the Rural Industries Research and Development Corporation, RIRDC Publication No 00/14, RIRDC Project No AGT–3A, February 2000, pp. 24–25.

[7]        Senate Economics References Committee, Inquiry into mass marketed tax effective schemes and investor protection, Interim report, June 2001, p. 2.

[8]        Submission 60, p. 3.

[9]        Patrick Mackarness and B Malcolm, 'Public policy and managed investment schemes for hardwood plantations', School of Agriculture and Food Systems, The University of Melbourne, Extension Farming Systems Journal, volume 2, No. 1, p. 106, https://www.csu.edu.au/__data/assets/pdf_file/0008/109547/EFS_Journal_v02_n01_10_Mackarness_and_Malcolm.pdf. One of their recommendations was to increase ASIC's powers and duties regarding agribusiness Product Disclosure Statements to include independent evaluation of MISs by experts who are not appointed by the Responsible Entity (see Lacey et al. 2006), p. 115.

[10]      Rick Lacey, Alistair Watson and John Crase, Economic effects of income-tax law on investments in Australian agriculture, with particular reference to new and emerging industries, Rural Industries Research and Development Corporation, RIRDC Publication No 05/078, RIRDC Project No AWT–1A, January 2006, p. vii, https://rirdc.infoservices.com.au/items/05-078 (accessed 5 December 2014).

[11]      See, for example, Rick Lacey, Alistair Watson and John Crase, Economic effects of income-tax law on investments in Australian agriculture with particular reference to new and emerging industries, Rural Industries Research and Development Corporation, RIRDC Publication No 05/078, RIRDC Project No AWT–1A, January 2006, p. 44, https://rirdc.infoservices.com.au/items/05-078 (accessed 5 December 2014).

[12]      Rick Lacey, Alistair Watson and John Crase, Economic effects of income-tax law on investments in Australian agriculture with particular reference to new and emerging industries, Rural Industries Research and Development Corporation, RIRDC Publication No 05/078, RIRDC Project No AWT–1A, January 2006, p. 10, https://rirdc.infoservices.com.au/items/05-078 (accessed 5 December 2014).

[13]      Submission to the Review of Non-Forestry Managed Investment Schemes, 12 September 2008, p. 4, http://archive.treasury.gov.au/documents/1423/PDF/National_Farmers_Federation.PDF (accessed 23 November 2014).

[14]      Submission 142, p. [2].

[15]      Proof Committee Hansard, 4 August 2015, p. 21.

[16]      Submission 105, p. [2].

[17]      Submission 149, p. 2.

[18]      Submission 194, p. 3

[19]      Submission 194, p. 5.

[20]      Submission 194, pp. 5–6.

[21]      Proof Committee Hansard, 5 August 2015, p. 1.

[22]      Proof Committee Hansard, 5 August 2015, p. 11.

[23]      Submission 194, p. 3.

[24]      Kylie Mastores to Sol Rabinowicz, Robert Hance et al, email, 14 May 2007, tabled document, 12 November 2014.

[25]      Mr Nick Roberts, the Australian Forest Products Association, in House of Representatives Standing Committee on Agriculture, Resources, Fisheries and Forestry, Seeing the forest through the trees, Inquiry into the future of the Australian Forestry Industry, November 2011, paragraph 5.47.

[26]      House of Representatives Standing Committee on Agriculture, Resources, Fisheries and Forestry, Seeing the forest through the trees, Inquiry into the future of the Australian Forestry Industry, November 2011, pp. 70–71.

[27]      House of Representatives Standing Committee on Agriculture, Resources, Fisheries and Forestry, Seeing the forest through the trees, Inquiry into the future of the Australian Forestry Industry, November 2011, p. 71. Councillor Lindsay Passfield, House of Representatives Standing Committee on Agriculture, Resources, Fisheries and Forestry, Committee Hansard, 1 September 2011, p. 18.

[28]      Submission 135, p. 7.

[29]      Rick Lacey, Alistair Watson and John Crase, Economic effects of income-tax law on investments in Australian agriculture with particular reference to new and emerging industries, Rural Industries Research and Development Corporation, RIRDC Publication No 05/078, RIRDC Project No AWT–1A, January 2006, p. 48.

[30]      Parliamentary Joint Committee on Corporations and Financial Services, Inquiry into aspects of agribusiness managed investment schemes, September 2009, p. 17.

[31]      NewForests, 'Rationalizing Timberland Managed Investment Schemes: The changing Landscape of Australia's Forestry Investment Sector', p. 4, http://www.newforests.com.au/wp-content/uploads/2014/09/Rationalizing-the-MIS-20140908.pdf (accessed 15 November 2014).

[32]      NewForests, 'Rationalizing Timberland Managed Investment Schemes: The changing Landscape of Australia's Forestry Investment Sector', p. 4, http://www.newforests.com.au/wp-content/uploads/2014/09/Rationalizing-the-MIS-20140908.pdf (accessed 15 November 2014).

[33]      Submission 24, p. 4.

[34]      Submission 24, p. 5.

[35]      Submission 24, p. 6.

[36]      Proof Committee Hansard, 5 August 2015, p. 16.

[37]      Proof Committee Hansard, 5 August 2015, p. 17.

[38]      Proof Committee Hansard, 5 August 2015, p. 17.

[39]      Proof Committee Hansard, 5 August 2015, p. 8.

[40]      Submission 34, p. 11.

[41]      Senate Economics References Committee, Inquiry into mass marketed tax effective schemes and investor protection, 2002, Minority Report, paragraph 1.130.

[42]      Senate Economics References Committee, Inquiry into mass marketed tax effective schemes and investor protection, 2002, Minority Report, paragraph 1.131.

[43]      Senate Economics References Committee, Inquiry into mass marketed tax effective schemes and investor protection, Final Report, February 2002, paragraph 4.52.

[44]      Senate Economics References Committee, Inquiry into mass marketed tax effective schemes and investor protection, Final Report, February 2002, paragraph 4.53.

[45]      Senate Economics References Committee, Inquiry into mass marketed tax effective schemes and investor protection, Final Report, February 2002, paragraph 4.55.

[46]      Senate Economics References Committee, Inquiry into mass marketed tax effective schemes and investor protection, Final Report, February 2002, paragraph 4.56.

[47]      Patrick Mackarness and B Malcolm, 'Public policy and managed investment schemes for hardwood plantations', School of Agriculture and Food Systems, The University of Melbourne, Extension Farming Systems Journal, volume 2, number 1, p. 106.

[48]      Appendix one, 'MS&A submission on the proposed new taxation arrangements for investments in Forestry Managed Investment Schemes (MIS)', Submission 60, pp. 1, 6 and 8.

[49]      Appendix one, 'MS&A submission on the proposed new taxation arrangements for investments in Forestry Managed Investment Schemes (MIS)', Submission 60, p. 10 and Senate Economics References Committee, Inquiry into mass marketed tax effective schemes and investor protection, Final Report, February 2002, paragraph 4.54.

[50]      Appendix one, 'MS&A submission on the proposed new taxation arrangements for investments in Forestry Managed Investment Schemes (MIS)', Submission 60, p. 13.

[51]      Appendix one, 'MS&A submission on the proposed new taxation arrangements for investments in Forestry Managed Investment Schemes (MIS)', Submission 60, pp. 7–8 (emphasis in original).

[52]      Appendix one, 'MS&A submission on the proposed new taxation arrangements for investments in Forestry Managed Investment Schemes (MIS)', Submission 60, pp. 1 and 8.

[53]      Submission 60, p. 10 and Appendix one, 'MS&A submission on the proposed new taxation arrangements for investments in Forestry Managed Investment Schemes (MIS)', p. 19 in Submission 60.

[54]      Submission to the Review of Non-Forestry Managed Investment Schemes, p. 12, http://archive.treasury.gov.au/documents/1423/PDF/Adviser_Edge.pdf (accessed 23 November 2014).

[55]      Submission to the Review of Non-Forestry Managed Investment Schemes, p. 12, http://archive.treasury.gov.au/documents/1423/PDF/Adviser_Edge.pdf (accessed 23 November 2014).

[56]      Submission to Parliamentary Joint Committee on Corporations and Financial Services, Inquiry into aspects of agribusiness managed investment schemes, included in Submission 26, p. 56.

[57]      Submission to Parliamentary Joint Committee on Corporations and Financial Services, Inquiry into aspects of agribusiness managed investment schemes, included in Submission 26, p. 56.

[58]      Submission 26, p. 1.

[59]      NFF, Submission 22 to the Parliamentary Joint Committee on Corporations and Financial Services (PJCCFS), Inquiry into aspects of agribusiness managed investment schemes, p. 3; and New South Wales Farmers' Association, Submission 52 to the PJCCFS inquiry into agribusiness MIS, pp. 5–6. It noted that that the commercial decision to invest in MIS was 'based on the immediate tax deductibility of the investment, rather than any dividend return or the entity's long term profitability' and investors 'lured by this incentive have forced a rapid expansion in the MIS sector'.

[60]      Proof Committee Hansard, 12 November 2014, p. 12.

[61]      Submission 60, p. 11.

[62]      Submission 60, p. 11.

[63]      According to Mr Lawrence, 'The underestimation of ongoing costs was highlighted when Gunns assumed management of Great Southern's MISs. The constitutions for each scheme were amended to increase the harvest commission by approximately 5% points for each estimated year until harvest. In other words, the newest project due to be harvested in 9 years time ended up with a harvest commission of over 50%. Growers can't make money on that basis'.

[64]      Submission 194, pp. 3–4.

[65]      Christine Brown, Colm Trusler and Kevin Davis, 'Managed Investment Scheme Regulation: Lessons from the Great Southern Failure', 29 January 2010, p. 9, http://kevindavis.com.au/secondpages/workinprogress/Great_Southern_JASSA-v2-28-1-10-3.pdf (accessed 9 December 2014).

[66]      Christine Brown, Colm Trusler and Kevin Davis, 'Managed Investment Scheme Regulation: Lessons from the Great Southern Failure', 29 January 2010, p. 5. http://kevindavis.com.au/secondpages/workinprogress/Great_Southern_JASSA-v2-28-1-10-3.pdf (accessed 9 December 2014).

[67]      Christine Brown, Colm Trusler and Kevin Davis, 'Managed Investment Scheme Regulation: Lessons from the Great Southern Failure', 29 January, 2010, p. 7, http://kevindavis.com.au/secondpages/workinprogress/Great_Southern_JASSA-v2-28-1-10-3.pdf (accessed 9 December 2014).

[68]      Name withheld, Submission 106, p. 2. See, also, name withheld, Supplementary Submission 52.1, p. [1].

[69]      Name withheld, Submission 106, p. 2.

[70]      Proof Committee Hansard, 4 August 2015, p. 14.

[71]      Submission 55. See, also, name withheld, Submission 97, p. [2].

[72]      Confidential Submission 36, p. [4].

[73]      Confidential Submission 36, p. [4] (emphasis in original).

[74]      Confidential Submission 140, p. 2.

[75]      Name withheld, Submission 41, p. 3.

[76]      Name withheld, Submission 150, p. [1].

[77]      Name withheld, Submission 150, p. [2].

[78]      Mr Peter Mazzucato, Submission 40, p. [2].

[79]      Mr Peter Mazzucato, Submission 40, p. [3].

[80]      Name withheld, Submission 56, pp. [3]–[4].

[81]      Proof Committee Hansard, 5 August 2015, p. 10.

[82]      Proof Committee Hansard, 5 August 2015, p. 1.

[83]      Proof Committee Hansard, 6 August 2015, p. 30.

[84]      Proof Committee Hansard, 6 August 2015, p. 32.

[85]      Name withheld, Submission 91, p. [2].

[86]      Name withheld, Submission 31, p. [1].

[87]      Name withheld, Submission 48.

[88]      Submission 173.

[89]      Peter and Elaine Wilson, Submission 49.

[90]      Name withheld, Submission 77.

[91]      Name withheld, Submission 52, p. [1].

[92]      Name withheld, Submission 91, p. [1].

[93]      Mr Andrew Reibelt, Submission 104; name withheld, Submission 150, p.[1]; name withheld, Submission 153, p.[ 2]; Mr Mark Laszczuk, Submission 157; name withheld, Submission 167, p. [5].

[94]      Proof Committee Hansard, 12 November 2014, p. 11.

[95]      Proof Committee Hansard, 12 November 2014, p. 11.

[96]      Proof Committee Hansard, 12 November 2014, p. 11.

[97]      Proof Committee Hansard, 12 November 2014, p. 28.

[98]      Proof Committee Hansard, 12 November 2014, p. 14.

[99]      Proof Committee Hansard, 12 November 2014, p. 15.

[100]    Proof Committee Hansard, 12 November 2014, pp. 17–19.

[101]    Proof Committee Hansard, 12 November 2014, p. 18.

[102]    Proof Committee Hansard, 12 November 2014, p. 19.

[103]    Proof Committee Hansard, 12 November 2014, p. 28.

[104]    Australian Agribusiness Group, Great Southern 2008 Diversified Olive Income Project Retail Investment Research, May 2007, updated July 2007, pp. B6–B7, https://www.accounting.eknowhow.com/johngrindal/files/0K9ZHF3I2K/AAG%20Research%20-%20Olives.pdf (7 September 2015).

[105]    Australian Agribusiness Group, Great Southern 2008 Diversified Olive Income Project Retail Investment Research, May 2007, updated July 2007, p. B7, https://www.accounting.eknowhow.com/johngrindal/files/0K9ZHF3I2K/AAG%20Research%20-%20Olives.pdf (7 September 2015).

[106]    Annexure, Clarke v Great Southern Pty Ltd (recs & mgrs apptd) (in liq) [2014] VSC 334 (25 July 2014) [36]–[37] to Clarke (as trustee of the Clarke Family Trust) v Great Southern Finance Pty Ltd (recs & mgrs apptd) (in liq) [2014] VSC 516.

[107]    Proof Committee Hansard, 6 August 2015, pp. 32–33.

[108]    ASIC, Submission to the Parliamentary Joint Committee on Corporations and Financial Services' Inquiry into Agribusiness Managed Investment Schemes, July 2009, paragraphs 89–90.

[109]    Submission 34, paragraph 9.

[110]    Submission 34, paragraph 53.

[111]    Environinvest Ltd (No 4) [2010] VSC 549 (8 December 2010) [2]–[3]. Environinvest was an unlisted public company that promoted and managed investment schemes, including the establishment and management of eucalyptus plantations, in which members of the public were invited to participate.

Chapter 14 - Unsafe products

[1]        Mr David Cornish, Proof Committee Hansard, 4 August 2015, p. 13.

[2]        ASIC, Submission 34, paragraphs 6 and 34.

[3]        Submission 34, paragraphs 6 and 34.

[4]        Consumer Action Law Centre, Submission 120, p. 7 to the committee's inquiry into the performance of the Australian Securities and Investments Commission.

[5]        Submission 161, p. 7.

[6]        Mr Graham Hodges, evidence to the committee's inquiry into Scrutiny of Financial Advice, Proof Committee Hansard, 21 April 2015, p. 26.

[7]        Evidence to the committee's inquiry into Scrutiny of Financial Advice, Proof Committee Hansard, 21 April 2015, p. 26.

[8]        Senate Economics Committee, Inquiry into mass marketed tax effective schemes and investor protection, Final Report, February 2002, paragraph 4.75.

[9]        See Senate Economics References Committee, Performance of the Australian Securities and Investments Commission, June 2014, paragraph 27.6.

[10]      Consumer Credit Legal Centre (NSW) and Consumer Action Law Centre, evidence to the committee's inquiry into the performance of ASIC, Committee Hansard, 20 February 2014, pp. 41–42.

[11]      See Senate Economics References Committee, Performance of the Australian Securities and Investments Commission, June 2014, paragraph 27.13.

[12]      See Senate Economics References Committee, Performance of the Australian Securities and Investments Commission, June 2014, paragraph 27.14, p. 438. Dimity Kingsford Smith, 'ASIC regulation for the investor as consumer', Company and Securities Law Journal, 29:5, 2011, p. 336.

[13]      See Senate Economics References Committee, Performance of the Australian Securities and Investments Commission, June 2014, paragraph 27.14, p. 438. Dimity Kingsford Smith, 'ASIC regulation for the investor as consumer', Company and Securities Law Journal, 29:5, 2011, p. 336.

[14]      See Senate Economics References Committee, Performance of the Australian Securities and Investments Commission, June 2014, pp. 438–439. Submission 120, p. 8 and Professor Dimity Kingsford Smith, Submission 153, p. 8 to that inquiry.

[15]      See Senate Economics References Committee, Performance of the Australian Securities and Investments Commission, June 2014, paragraph 27.15, p. 438. Professor Dimity Kingsford Smith, Submission 153, p. 8 to that inquiry.

[16]      See Senate Economics References Committee, Performance of the Australian Securities and Investments Commission, June 2014, paragraph 27.16, p. 438. Corporations Committee, Business Law Section, Law Council of Australia, Submission 150, p. 4 to that inquiry.

[17]      See Senate Economics References Committee, Performance of the Australian Securities and Investments Commission, June 2014, paragraph 27.17, p. 439. Rule of Law Institute of Australia, Submission 211, p. 7 to that inquiry.

[18]      See Senate Economics References Committee, Performance of the Australian Securities and Investments Commission, June 2014, paragraph 27.18, p. 439. Submission 234, p. 31 to that inquiry.

[19]      Financial Planning Association of Australia, Submission 234, p. 26 to committee's inquiry into the performance of the Australian Securities and Investments Commission.

[20]      Mr Greg Medcraft, Chairman, ASIC, committee's inquiry into the Performance of the Australian Securities and Investments Commission, Committee Hansard, 19 February 2014, p. 19.

[21]      ASIC, answer to written question on notice No 9, p. 10 of 59, (received 21 May 2014), to committee's inquiry into the performance of the Australian Securities and Investments Commission.

[22]      ASIC, answer to written question on notice No. 9, p. 10 of 59, (received 21 May 2014), to committee's inquiry into the Performance of the Australian Securities and Investments Commission.

[23]      ASIC, answer to written question on notice No. 9, p. 11 of 59, (received 21 May 2014) to committee's inquiry into the Performance of the Australian Securities and Investments Commission.

[24]      Mr Richard St. John, Compensation arrangements for consumers of financial services, April 2012, p. 104.

[25]      Mr Richard St. John, Compensation arrangements for consumers of financial services, April 2012, p. 104.

[26]      Mr Richard St. John, Compensation arrangements for consumers of financial services, April 2012, p. 113.

[27]      Mr Richard St. John, Compensation arrangements for consumers of financial services, April 2012, p. 146.

[28]      See Senate Economics References Committee, Performance of the Australian Securities and Investments Commission, June 2014, paragraph 27.32 (Recommendation 58).

[29]      Financial System Inquiry, Final Report, Commonwealth of Australia, November 2014, p. 208, http://fsi.gov.au/files/2014/12/FSI_Final_Report_Consolidated20141210.pdf (accessed 4 December 2014).

[30]      Financial System Inquiry, Final Report, Commonwealth of Australia, November 2014, p. 209, http://fsi.gov.au/files/2014/12/FSI_Final_Report_Consolidated20141210.pdf (accessed 4 December 2014).

[31]      Financial System Inquiry, Final Report, Commonwealth of Australia, November 2014, p. 206, http://fsi.gov.au/files/2014/12/FSI_Final_Report_Consolidated20141210.pdf (accessed 4 December 2014).

[32]      Financial System Inquiry, Final Report, Commonwealth of Australia, November 2014, p. 206, http://fsi.gov.au/files/2014/12/FSI_Final_Report_Consolidated20141210.pdf (accessed 4 December 2014).

[33]      Submission 161, p. 4.

[34]      Financial System Inquiry, Final Report, Commonwealth of Australia, November 2014, p. 198, http://fsi.gov.au/files/2014/12/FSI_Final_Report_Consolidated20141210.pdf (accessed 4 December 2014) and Submission 161, p. 5.

[35]      Financial System Inquiry, Final Report, Commonwealth of Australia, November 2014, p. 199, http://fsi.gov.au/files/2014/12/FSI_Final_Report_Consolidated20141210.pdf (accessed 4 December 2014).

[36]      Financial System Inquiry, Final Report, Commonwealth of Australia, November 2014, pp. 221 and 236, http://fsi.gov.au/files/2014/12/FSI_Final_Report_Consolidated20141210.pdf (accessed 4 December 2014).

[37]      Submission 34, paragraph 7.

[38]      Submission 161, p. 7.

[39]      Submission 161, p. 4.

[40]      Mr Mark Rantall, Proof Committee Hansard, 6 August 2015, p. 26.

[41]      Submission 161, p. 9.

[42]      Submission 138, p. 2.

[43]      Proof Committee Hansard, 4 August 2015, p. 13.

[44]      Submission 60, p. 10.

[45]      Proof Committee Hansard, 4 August 2015, p. 13.

[46]      Submission 60, pp. 2, 11 and 20.

[47]      Submission 20, p. [2].

[48]      Submission 20, p. [2].

[49]      Submission 20, p. [ 2].

[50]      Submission 20, p. [ 2].

[51]      Submission 20, p. [3].

[52]      Submission 20, p. [3].

[53]      Greg Medcraft, Chairman, Australian Securities and Investments Commission, 'The Financial System Inquiry: A regulator's perspective', 32nd annual conference of the Banking and Financial Services Law Association (Brisbane), 4 September 2015, p. 3, http://download.asic.gov.au/media/3343239/bfsla-the-financial-system-inquiry-a-regulators-perspective-4-september-2015.pdf (accessed 7 September 2015).

[54]      Greg Medcraft, Chairman, Australian Securities and Investments Commission, 'The Financial System Inquiry: A regulator's perspective', 32nd annual conference of the Banking and Financial Services Law Association (Brisbane), 4 September 2015, p. 3, http://download.asic.gov.au/media/3343239/bfsla-the-financial-system-inquiry-a-regulators-perspective-4-september-2015.pdf (accessed 7 September 2015).

[55]      Greg Medcraft, Chairman, Australian Securities and Investments Commission, 'The Financial System Inquiry: A regulator's perspective', 32nd annual conference of the Banking and Financial Services Law Association (Brisbane), 4 September 2015, p. 4, http://download.asic.gov.au/media/3343239/bfsla-the-financial-system-inquiry-a-regulators-perspective-4-september-2015.pdf (accessed 7 September 2015).

[56]      Greg Medcraft, Chairman, Australian Securities and Investments Commission, 'The Financial System Inquiry: A regulator's perspective', 32nd annual conference of the Banking and Financial Services Law Association (Brisbane), 4 September 2015, p. 4, http://download.asic.gov.au/media/3343239/bfsla-the-financial-system-inquiry-a-regulators-perspective-4-september-2015.pdf (accessed 7 September 2015).

[57]      Australian Government, Improving Australia's financial systems, Government response to the Financial System Inquiry, p. 19.

[58]      Australian Government, Improving Australia's financial systems, Government response to the Financial System Inquiry, p. 19.

[59]      Australian Government, Improving Australia's financial systems, Government response to the Financial System Inquiry, p. 19.

Chapter 15 -  

[1]        Corporations and Markets Advisory Committee, Managed Investment Schemes Report, July 2012, p. 2, http://www.camac.gov.au/camac/camac.nsf/byheadline/pdffinal+reports+2012/$file/mis_report_july2012.pdf (accessed 9 June 2015).

[2]        Law Council of Australia, submission to the Treasurer the Hon Wayne Swan, p. 3, http://www.lawcouncil.asn.au/lawcouncil/images/LCA-PDF/docs-2300-2399/2351%20Managed%20Investment%20Schemes.pdf (accessed 7 September 2015).

[3]        ASIC, Submission 34, paragraph 126.

[4]        Corporations Act 2001, s 601FM and s 601FP.

[5]        ASIC, Submission 34, paragraph 125.

[6]        Submission 34, paragraph 134.

[7]        Submission 34, paragraph 118.

[8]        Corporations and Markets Advisory Committee, Managed Investment Schemes Report, July 2012, p. 3.

[9]        Corporations Act 2001, s 601FS.

[10]      R. I. Barrett, 'Insolvency of Registered Managed Investment Schemes', Banking and Financial Services Law Association, Queenstown, New Zealand, July 2008, pp. 11–12, http://www.supremecourt.justice.nsw.gov.au/Documents/barrett260708.pdf. See also, Leon Zwier, Justin Vaatstra, and Oren Bigos, 'Can Managed Investment Schemes be Restructured?', 10 September 2014, p. 2, http://www.vicbar.com.au/GetFile.ashx?file=CPDAdjournedFiles%2F1057_10092014_ABL+MIS_RESTRUCTURING_PAPER.pdf (accessed 22 September 2015).

[11]      The Supreme Court of Victoria at Melbourne, Commercial and Equity Division, Commercial Court, Timbercorp Securities Limited (in liq) ACN 092 311 469, ASIC's submission, 14 July 2009, p. 5, http://www.kordamentha.com/docs/51_03_timbercorp-almond-schemes/asic%27s-outline-of-submissions-(14-july-2009).pdf (accessed 4 December).

[12]      Submission 34, paragraph 119. Section 601FS deals with the rights, obligations and liabilities of a former responsible entity. Section 601FT covers the effect of change of responsible entity on documents etc. to which a former responsible entity is party.

[13]      Willmott Growers Group Inc v Willmott Forests Limited (recs and mgrs apptd) (in liq) [2013] HCA 51 (4 December 2013), [15].

[14]      Willmott Growers Group Inc v Willmott Forests Limited (recs and mgrs apptd) (in liq) [2013] HCA 51 (4 December 2013), [15].

[15]      Response from PPB Advisory to Submission 187, received 6 February, 2015, p. 1.

[16]      Response from PPB Advisory to Submission 187, received 6 February, 2015, p. 1.

[17]      Response from PPB Advisory to Submission 187, received 6 February, 2015, p. 1.

[18]      Response from PPB Advisory to Submission 187, received 6 February, 2015, p. 2.

[19]      Response from PPB Advisory to Submission 187, received 6 February, 2015, p. 2.

[20]      Corporations and Markets Advisory Committee, Managed Investment Schemes Report, July 2012, p. 10. http://www.camac.gov.au/camac/camac.nsf/byheadline/pdffinal+reports+2012/$file/mis_report_july2012.pdf (accessed 9 June 2015).

[21]      Corporations and Markets Advisory Committee, Managed Investment Schemes Report, July 2012, pp. 27–28, http://www.camac.gov.au/camac/camac.nsf/byheadline/pdffinal+reports+2012/$file/mis_report_july2012.pdf (accessed 9 June 2015).

[22]      Corporations and Markets Advisory Committee, Managed Investment Schemes Report, July 2012, pp. 28–29, http://www.camac.gov.au/camac/camac.nsf/byheadline/pdffinal+reports+2012/$file/mis_report_july2012.pdf  (accessed 9 June 2015). See also Corporations and Markets Advisory Committee, The establishment and operation of managed investment schemes, Discussion paper, March 2014, p. 13.

[23]      Corporations and Markets Advisory Committee, Managed Investment Schemes Report, July 2012, p. 10, http://www.camac.gov.au/camac/camac.nsf/byheadline/pdffinal+reports+2012/$file/mis_report_july2012.pdf  (accessed 9 June 2015).

[24]      Submission 34, paragraph 117.

[25]      Submission 34, paragraph 46.

[26]      Submission 34, paragraph 120.

[27]      Willmott Growers Group Inc v Willmott Forests Limited (recs and mgrs apptd) (in liq) [2013] HCA 51 (4 December 2013) [57] [78] [79].

[28]      Response from PPB Advisory to Submission 187, received 6 February 2015, p. 2.

[29]      Response from PPB Advisory to Submission 187, received 6 February 2015, p. 4.

[30]      Submission 34, paragraph 128.

[31]      Submission 34, paragraph 128.

[32]      Submission 23, p. 2.

[33]      Re Timber Securities Limited (in liq) (No 2) [2009] VSC 411 (14 September 2009) [7]–[8].

[34]      Submission 144, p. [1].

[35]      Submission 144, p. [2] (emphasis in original).

[36]      Submission 34, paragraph 132.

[37]      Submission 34, paragraph 133.

[38]      Name withheld, Submission 95, p. [2].

[39]      Confidential Submission 140, p. 1.

[40]      Response from PPB Advisory to Submission 187, received 6 February 2015, p. 4.

[41]      Additional information provided on 4 December 2014, paragraphs 18–19, p. 7.

[42]      Additional information provided on 4 December 2014, paragraphs 19–21, p. 7.

[43]      Proof Committee Hansard, 5 August 2015, p. 19.

[44]      Submission 7, p. [1].

[45]      KordaMentha, additional information provided on 4 December 2014, paragraph 21.

[46]      Corporations and Markets Advisory Committee, Managed Investment Schemes Report, July 2012, p. 11.

[47]      See, for example, paragraphs 15.14–15.19 and 15.35.

[48]      Carl Möller, 'How have Managed Investment Schemes coped with the Challenges of Insolvency', in Stewart J. Madison (ed), Insolvent Investments, LexisNexis, Butterworths, Australia, 2015, paragraph, 2.81, p. 30.

[49]      Carl Möller, 'How have Managed Investment Schemes coped with the Challenges of Insolvency', in Stewart J. Madison (ed), Insolvent Investments, LexisNexis, Butterworths, Australia, 2015, paragraph 2.95, p. 33.

[50]      Submission 23, p. 1.

[51]      Submission 23, p. 2.

[52]      Submission 23, p. 2.

[53]      Submission 145, paragraphs 21–23.

[54]      KordaMentha, additional information provided on 4 December 2014, paragraph 20, p. 7.

[55]      KordaMentha, additional information provided on 4 December 2014, paragraph 21, p. 7.

[56]      Submission 34, paragraph 122.

[57]      See Appendix 3 for a complete list of CAMAC's recommendations.

[58]      Corporations and Markets Advisory Committee, Managed Investment Schemes Report, July 2012, p. 59, http://fsi.gov.au/files/2014/12/FSI_Final_Report_Consolidated20141210.pdf (accessed 9 June 2015).

[59]      Corporations and Markets Advisory Committee, Managed Investment Schemes Report, July 2012, p. 10, http://fsi.gov.au/files/2014/12/FSI_Final_Report_Consolidated20141210.pdf (accessed 9 June 2015).

[60]      Corporations and Markets Advisory Committee, Managed Investment Schemes Report, July 2012, p.11, http://fsi.gov.au/files/2014/12/FSI_Final_Report_Consolidated20141210.pdf (accessed 9 June 2015).

[61]      Submission 23, p. [1].

[62]      Financial System Inquiry, Final Report, Commonwealth of Australia, November 2014, p. 273, http://fsi.gov.au/files/2014/12/FSI_Final_Report_Consolidated20141210.pdf

[1]        Proof Committee Hansard, 5 August 2015, p. 25.

[2]        Submission 105, p. [1].

[3]        Submission 105, p. [1].

[4]        Submission 105, pp. [1]–[2].

[5]        Christine Brown, Colm Trusler and Kevin Davis, 'Managed Investment Scheme Regulation: Lessons from the Great Southern Failure', 29 January 2010, p. 11, http://kevindavis.com.au/secondpages/workinprogress/Great_Southern_JASSA-v2-28-1-10-3.pdf (accessed 9 December 2014).

[6]        Submission 105, p. [3].

[7]        Submission 24, p. 4.

[8]        Submission 24, p. 5.

[9]        Submission 24, p. 4.

[10]      Proof Committee Hansard, 5 August 2015, pp. 3 and 4.

[11]      Submission 7, p. [1].

[12]      Submission 149, p. 5.

[13]      Submission 149, p. 6.

[14]      Plantations for Australia: The 2020 Vision, an Industry/Government Initiative for Plantation Forestry in Australia, p. 15, http://www.agriculture.gov.au/Style%20Library/Images/DAFF/__data/assets/pdffile/0009/2398185/plantations-australia-2020-vision.pdf

[15]      NewForests, 'Rationalizing Timberland Managed Investment Schemes: The changing Landscape of Australia's Forestry Investment Sector', p. 1, http://www.newforests.com.au/wp-content/uploads/2014/09/Rationalizing-the-MIS-20140908.pdf (accessed 15 November 2014).

[16]      Proof Committee Hansard, 14 October 2015, p. 18.

[17]      AgriWealth, Submission 138, p. 1.

[18]      Submission 3, p. 1.

[19]      Submission 3, p. 2.

[20]      Submission 3, p. 2.

[21]      Proof Committee Hansard, 12 November 2014, pp. 30–31.

[22]      Submission 135, p. 6.

[23]      KordaMentha, additional information provided on 4 December 2014, paragraph 19.

[24]      KordaMentha, additional information provided on 4 December 2014, paragraph 21.

[25]      Submission 145, paragraph 19.

[26]      Submission 126, p. 2.

[27]      Submission 126, p. 2.

[28]      Submission 126, p. 17.

[29]      Submission 126, p. 17.

[30]      Proof Committee Hansard, 5 August 2015, p. 26.

[31]      Submission 137, p. 1.

[32]      Submission 137, pp. 1–2.

[33]      Submission 137, p. 2.

[34]      Submission 137, p. 2, (emphasis in original).

[35]      Submission 137, p. 2.

[36]      Submission 137, pp. 3–4.

[37]      Submission 138, p. 2.

[38]      Submission 138, p. 2.

[39]      Submission 138, p. 3.

[40]      Submission 143, p. 2.

[41]      Submission 143, p. 2.

[42]      Submission 132, p. 6.

[43]      Submission 132, p. 6.

[44]      Submission 132, p. 4.

[45]      Submission 132, p. 5.

[46]      In the 2005–06 Budget, the government announced that it would conduct a review of the application of taxation law to plantation forestry in the context of the government's broader plantation and natural resource management policies, Treasury, Review of Taxation Treatment of Plantation Forestry, 22 June 2005, http://archive.treasury.gov.au/contentitem.asp?ContentID=997&NavID (accessed 22 September 2015).

Chapter 17 - Compensation

[1]        Name withheld, Submission 186, p. 4.

[2]        Submission 34, paragraph 165.

[3]        Name withheld, Submission 56, p. [5].

[4]        Submission 133, p. [1].

[5]        Submission 144, p. [2].

[6]        Submission 144, p. [2].

[7]        Submission 34, paragraphs 181–182.

[8]        Submission 34, paragraph 184.

[9]        Submission 34, paragraph 186.

[10]      Submission 34, paragraph 187.

[11]      Confidential Submission 116, p. [1].

[12]      Mr Andigone Aguilar, Submission 67, p. 1.

[13]      Ms Michelle Johnson, Submission 139, p. [1]; name withheld, Submission 168. 

[14]      Confidential Submission 134, p. [4]; Ms Michelle Johnson, Submission 139, p. [1]–[2].

[15]      Confidential Submission 116, p. [1].

[16]      The current regulatory architecture of the financial services complaints resolution system has its origins in the 1997 Wallis Inquiry, which identified the need for low-cost means to resolve disputes. See Financial Ombudsman Service, Submission 193, p. 3.

[17]      Name withheld, Submission 56, p. [4].

[18]      Name withheld, Submission 65, p. [1].

[19]      Mr Neil Kendall, Proof Committee Hansard, 6 August 2015, p. 29.

[20]      Submission 34, paragraph 192.

[21]      Name withheld, Submission 33, p. [2].

[22]      Name withheld, Submission 102, p. [2].

[23]      Richard St. John, Compensation arrangements for consumers of financial services, April 2012, pp. 147–149, http://futureofadvice.treasury.gov.au/content/consultation/compensation_arrangements_report/downloads/Final_Report_CACFS.pdf  (accessed 1 June 2015). Submission 136, p. 5.

[24]      Richard St. John, Compensation arrangements for consumers of financial services, April 2012, p. 143, http://futureofadvice.treasury.gov.au/content/consultation/compensation_arrangements_report/downloads/Final_Report_CACFS.pdf  (accessed 1 June 2015).

[25]      Proof Committee Hansard, Senate Economics References Committee inquiry into the Scrutiny of Financial Advice, 10 August 2015, 10 August 2015, p. 2.

[26]      Proof Committee Hansard, Senate Economics References Committee inquiry into the Scrutiny of Financial Advice, 10 August 2015, pp. 1–2.

[27]      Ms Catriona Lowe, Submission 200, paragraph 4.

[28]      Ms Catriona Lowe, Submission 200, paragraph 5.

[29]      Ms Catriona Lowe, Submission 200, paragraph 6.

[30]      Ms Catriona Lowe, Submission 200, paragraph 7. See also, Ms Lowe's observations in paragraph 11.33. For example she stated, while 'industry based EDR theoretically provides this redress for poor adviser conduct, in reality this redress is stymied by the limitations of adviser solvency and PI insurance.

[31]      Mr Craig Meller, Proof Committee Hansard, Senate Economics References Committee inquiry into the Scrutiny of Financial Advice, 10 August 2015, pp. 1–2.

[32]      Mr Craig Meller, Proof Committee Hansard, Senate Economics References Committee inquiry into the Scrutiny of Financial Advice, 10 August 2015, pp. 1–2.

[33]      Mr Craig Meller, Proof Committee Hansard, Senate Economics References Committee inquiry into the Scrutiny of Financial Advice, 10 August 2015, p. 2.

[34]      Proof Committee Hansard, Senate Economics References Committee inquiry into the Scrutiny of Financial Advice, 21 April 2015, p. 45.

[35]      Proof Committee Hansard, Senate Economics References Committee inquiry into the Scrutiny of Financial Advice, 21 April 2015, p. 21.

[36]      Proof Committee Hansard, Senate Economics References Committee inquiry into the Scrutiny of Financial Advice, 21 April 2015, p. 21.

[37]      Proof Committee Hansard, Senate Economics References Committee inquiry into the Scrutiny of Financial Advice, 21 April 2015, p. 24.

[38]      Proof Committee Hansard, Senate Economics References Committee inquiry into the Scrutiny of Financial Advice, 21 April 2015, p. 25.

[39]      Proof Committee Hansard, Senate Economics References Committee inquiry into the Scrutiny of Financial Advice, 21 April 2015, p. 25.

[40]      Proof Committee Hansard, Senate Economics References Committee inquiry into the Scrutiny of Financial Advice, 21 April 2015, p. 25.

[41]      Submission 34, paragraph 223.

[42]      Ms Catriona Lowe, correspondence to committee, January 2016, paragraph 6.

Chapter 18 - Conclusion

[1]        Mr Greig Allan, Supplementary Submission 133.1.

[2]        Submission 34, paragraph 21.

[3]        Section 601FF of the Corporations Act.

[4]        Senate Economics References Committee, Performance of the Australian Securities and Investments Commission, June 2014, paragraph 4.21. Dimity Kingsford Smith, 'A Harder Nut to Crack?', Responsive Regulation in the Financial Services Sector' forthcoming in symposium issue on responsive regulation in (2011) Univ British Columbia Law Review (Summer 2011). p. 698.

[5]        Senate Economics References Committee, Performance of the Australian Securities and Investments Commission., June 2014, paragraphs 16.34–16.36 and Inquiry into the performance of the Australian Securities and Investments Commission, Committee Hansard, 21 February 2014, p. 1.

[6]        Senate Economics References Committee, Performance of the Australian Securities and Investments Commission, June 2014, paragraph 5.72.

[7]        Senate Economics References Committee, Performance of the Australian Securities and Investments Commission, June 2014, paragraph 9.47.

[8]        Submission 60, p. [3].

[9]        Name withheld, Submission 68, p. [2].

[10]      Name withheld, Submission 70, p. [1].

[11]      Name withheld, Supplementary Submission 52, p. [2].

[12]      Confidential Submission 37, p. 1.

[13]      ASIC, confidential answer to written question on notice, No. 19. These advisers are not listed on ASIC's Financial Advisers' Register.

[14]      ASIC, 'Information for Timbercorp Growers', http://asic.gov.au/about-asic/media-centre/key-matters/information-for-timbercorp-growers/ (accessed 24 November 2015).

[15]       In the 2005–06 Budget, the government announced that it would conduct a review of the application of taxation law to plantation forestry in the context of the government's broader plantation and natural resource management policies. Treasury, Review of Taxation Treatment of Plantation Forestry, 22 June 2005, http://archive.treasury.gov.au/contentitem.asp?ContentID=997&NavID=  (accessed 22 September 2015).

Senator Nick Xenophon—Additional Comments

[1]        Submission 200.

Australian Greens—Dissenting Report

[1]        John Lawrence, Submission 194, p. 2.

[2]        Mr Greg Tanzer, Commissioner, Australian Securities and Investments Commission, Committee Hansard, 14 October 2015, p. 19.

Appendix 3 - CAMAC Managed Investment Schemes

[1]        Taken from Corporations and Markets Advisory Committee, Managed Investment Schemes Report, July 2012, pp. 14–19, http://www.camac.gov.au/camac/camac.nsf/byheadline/pdffinal+reports+2012/$file/mis_report_july2012.pdf (accessed 9 June 2015).