IMF to pursue class actions, forced to wait on Great Southern
Litigation funding group IMF Australia has been successful in receiving an exemption from ASIC from having to register several class actions as managed investment schemes (MISs) but group actions including Great Southern were declined exemption, according to IMF.
The Centro, Westpoint and Premium Income Fund class actions were among those granted exemptions, but IMF said that it would have to wait until June 30 for a decision from ASIC about whether group actions including Great Southern and Australian Stockbroking and Advisory Services would be classed as MISs.
IMF was currently looking at several options, including registering the remaining group actions as MISs, a company spokesperson said. It was also possible that IMF would just act for sophisticates and not for retail clients, but any decision would be made after ASIC’s ruling on June 30, he said.
In October a Federal Court overturned an earlier decision stating that a funded class action did not fit the definition of an MIS. No court has yet declared that funded group actions are MISs, according to IMF.
AUTHOR
Mike Taylor
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