In a landmark ruling, the Australian Federal Court has found that monetary capacity alone cannot serve as a proxy for the sophistication of investors transacting in complex financial instruments.

Over the past three years since the decision in the High Court permitting litigation funding and the Federal Court’s determination that litigation funding should be treated as a managed investment scheme there has been much debate about the regulation of litigation funding in Australia.

Greg Golding and Laura Steinke of King & Wood Mallesons consider the position of the Australian director in 2012 against the framework of the directors’ place in the regulatory enforcement environment.

The Bank for International Settlements has released a collection of 10 papers from a conference held in November 2011 on the relationship between financial regulation and growth, equity and stability.