IMF Australia to fund council claims
Litigation funding firm IMF Australia has moved to fund claims on behalf of certain local councils against Local Government Financial Services, ABN Amro Bank NV and McGraw-Hill International (UK) Limited, the owner of Standard & Poor’s (S&P).
In its recent action, IMF informed the Australian Securities Exchange that it would fund claims relating to the purchase by the councils of Community Income Constant Proportion Debt Obligation Notes, also known as Rembrandt Notes. Litigation is already underway, with Corowa Shire Council and Parkes Shire Council individually making a claim and as representatives of 10 other local councils.
A claim has already been made against ABN Amro and S&P by law firm Piper Alderman, IMF Australia’s executive director, John Walker, has confirmed. Walker said the litigation funding firm is backing Piper Alderman’s claim against ABN Amro and S&P. He said the law firm’s claim stems from the fact that “ABN Amro were offering the notes at 180 basis points above the bank bill rates and talked S&P into giving it an AAA rating, knowing they would eventually be sold onto [Local Government Financial Services]".
“The fact is it should have never had an AAA rating and never should have been sold onto councils,” he said. The class action will also allege two other ratings agencies refused to rate the product.
Recommended for you
The strategic partnership with Oaktree Capital and AZ NGA is likely to pave the way for overseas players looking to enter the Australian financial advice market, according to experts.
ASIC has cancelled a Sydney AFSL for failing to pay a $64,000 AFCA determination related to inappropriate advice, which then had to be paid by the CSLR.
Increasing revenue per client is a strategic priority for over half of financial advice businesses, a new report has found, with documented processes being a key way to achieving this.
The education provider has encouraged all financial advisers to avoid a “last-minute scramble” in meeting education requirements prior to the 31 December 2025 deadline.
