James Paterson (Victoria, Liberal Party) Share this | Hansard source

Do you think they should not be required to act efficiently? Do you think they should not be required to act honestly? Or is it that you don't think they should be required to act fairly?

The record in fact shows that since these regulations were introduced litigation funders have applied for and been successfully granted AFS licences. As they said before the committee, they don't think it is a significant obstacle. The complaint they did have was largely around managed investment schemes, and ASIC has given them enormous relief from the regulations imposed under MISs.

Senator O'Neill interjecting—

With regard to every complaint they made during the inquiry about the application of the MISs, ASIC has granted them relief from complying. So this is a totally phoney and false debate. It is bizarre to hear the Greens and the Labor Party come in here and defend litigation funders who are generating 500, 600 or 700 per cent returns from cases, which they are then remitting to their headquarters in the Cayman Islands, the British Virgin Islands or the Channel Islands—they're quite fond of islands! I never thought I would see the day the Labor Party and the Greens would combine to try to defend financiers making off our legal system what Labor and the Greens would normally call record and obscene profits.