Litigation and regulatory action to hit Australia
A wave of litigation and regulatory action triggered by the credit crisis is soon to hit Australian investment and finance companies, with accountants, appraisers and analysts among its targets, according to a leading insurance lawyer.
Allens Arthur Robinson (Allens) partner Oscar Shub said the types of targets for litigation and regulatory action had expanded.
“In particular, these targets now include companies and individuals involved in the investment processes and financial markets concerned with, or otherwise touched by, mortgage-backed securities and derivatives,” Shub said.
New targets of litigation will include accountants, appraisers, analysts and other professionals who provided advice in connection with the value of these securities and derivatives, and the risks associated with such investments, Shub said.
“They may also face claims by individuals and entities who relied on their professional advice and expertise."
According to Shub, this trend, which has occurred in the US, is “bound to filter out and we are likely to see it occurring in other economies, including Australia and those in Asia”.
Shub said many of these claims would also target individuals commonly insured under directors' and officers' policies and the companies for which they are directors and officers.
Recommended for you
Sequoia Financial Group has announced it is selling off its Informed Investor subsidiary which it acquired in April 2022.
Wealth Data has examined which advice business model has seen the most growth since the start of the year including those that offer holistic advice.
Research conducted by Elixir Consulting and Lonsec has quantified the efficiency gains of using managed accounts in financial advice practices in hours per week saved.
With only one-quarter of advice practices actively seeking feedback from clients, the Financial Advice Association Australia has emphasised why this is a critical tool for client retention.