Name: Mutual Capital Instrument Briefing Sessions
Start: 2019-11-20T00:00:00+11:00
End: 2019-11-28T23:59:59+11:00

This event has passed.

The Mutual Reforms Act 2019 affects all mutuals

In April this year, the Corporations Act was amended by the Treasury Laws Amendment (Mutual Reforms) Act 2019. The amendments include:

Introducing a definition of ‘mutual entity’ into the Corporations Act;
Allowing the issue of Mutual Capital Instruments (MCIs) as a specialised capital instrument for mutual entities; and
Introducing a standard process of member approval to allow eligible mutual entities to amend their constitutions to allow the issue and operation of MCIs without causing a demutualisation or requiring special compliance measures.

BCCM initiated this whole process and influenced the Federal Government to ultimately amend the Corporations Act in this way.

BCCM is holding a series of briefing sessions across the country, to provide an expert insight into the recent legislative changes that affect all Federally registered mutuals.

Who should attend?

The events are designed for executives and non-executive directors of mutual firms from all industry sectors and will provide a unique opportunity to meet with members of the team who helped to design the legislation. The briefing agenda is below.

Event Details

Delegate fees & how to register

$495 + GST BCCM members

$650 + GST Non-BCCM members

Register for below for each individual event:

Agenda

10.00 – 10.20 am: What are Mutual Capital Instruments? (20 mins)

MCIs are a new permanent capital instrument that can only be issued by eligible mutual entities. We will describe the features of MCI, why they have been created and the context of the newly established government support for improving the business environment for the mutual sector.

10.20 – 10.40 am: Why prepare to issue MCI and what would you use it for? (20 mins)

Issuing new capital will be a new direction for mutual firms. We will discuss the rationale for raising capital in this way and the potential use that firms will put it to.

10.40 – 11.00 am: International examples of mutual capital (20 mins)

Co-operatives and mutuals across the world raise additional capital in a variety of different ways. Some types of capital raised in Europe exhibit equity features and are available to institutional investors, whilst others are raised directly from members.

We will give an insight into similar initiatives in the UK, Canada and the Netherlands, leading to the successful raising of new capital for mutual businesses.

11.00 – 11.15 am: Coffee break & networking (15 mins)

11.15 – 11.35 am: Explaining the legal changes – What do firms need to do? (20 mins)

We will outline the impact the law will have on individual constitutions, what firms will need to do to prepare their constitutions to take advantage of these changes.

11.35 – 11.55 am: Designing MCI (20 mins)

The legislation provides the framework for MCI, but firms will need to design their own instruments. We will outline the optional features that MCI may have, in relation to voting, distributions and surplus assets.

11.55 am – 12.15 pm: The market for MCI (20 mins)

We will outline the likely markets for MCI, the difference between wholesale and retail issuance, and factors that firms should consider when deciding which path to take.

12.15 – 12.30 pm: Open discussion (15 mins)

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