Date issued: 27 March 2018
The Standing Committee of Attorneys-General has agreed that section 258 of the Uniform Law in relation to Managed Investment Schemes (MIS) should be amended in light of the LSC's recommendations.
The Justice Legislation Amendment (Access to Justice) Bill 2018 was introduced into the Victorian Parliament today.
The LSC commissioned an inquiry last year to inform regulatory changes required due to prohibitions on law practices in section 258(1) of the Uniform Law scheduled to commence on 1 July 2018. MIS are collective investments which include solicitors' mortgages and other arrangements, such as property syndicates or investment pools.
In considering this law reform, the LSC was concerned to achieve a balance between the business needs of law practices and the protection of clients. The Final Report into section 258 of the Uniform Law recommended maintaining the prohibition on promoting or operating MIS, subject to some limitations to the scope of the prohibition. Headed by expert consultant Professor Pamela Hanrahan, the inquiry consulted with small and medium sized law practices whose business interests were directly affected by the coming laws, as well as consumer groups and regulators.
The proposed Legal Profession Uniform General Rule changes, as outlined in the Final Report, will be released for public comment after an initial period of consultation with DLRAs and key stakeholders, including the Law Institute of Victoria and the Law Society of New South Wales.
To ensure the legal profession is prepared for the new law commencing on 1 July 2018, the LSC will continue to inform regulators and the profession and provide guidance to law practices on compliance with the new MIS regime.
Please direct any questions or comments to: firstname.lastname@example.org or telephone 02 8293 5900.
Report of an inquiry for the Legal Services Council into Section 258 of the Legal Profession Uniform Law [PDF 446KB]