Advisory services for co-ops and mutuals
Mutual capital consultancy
Mutual capital consultancy that identifies opportunities for raising additional investment in the business and helps firms to prepare to take advantage of recent legislative reforms.
Legislation passed by the Federal Parliament this April is a major step forward for Australia, delivering landmark laws for the first positive change to the Corporations Act for mutuals in 18 years.
It was conceived by BCCM, to create new and unique ‘mutual capital instruments’ to help existing mutuals grow and innovate in sectors as varied as banking, agriculture and motoring.
The Legislation does four things:
- Introduces a definition of a mutual entity into the Corporations Act.
- Removes uncertainty for institutions in respect of the demutualisation provisions in Part 5 of Schedule 4 of the Corporations Act by replacing RG147.
- Provides for Mutual Capital Instruments as a new bespoke capital instrument for mutual entities.
- Provides a standard process to allow eligible mutual entities to amend their constitutions to enable them to take advantage of these reforms via a 36-month window.
It is important that mutual sector executives and boards fully understand what this means for them, and what they need to do in conjunction with working with lawyers, should they elect to alter their constitution.
During the 36-month window, firms will need to communicate to their members the purpose of any constitutional changes that are proposed, and it is advantageous if there is alignment across the sector for this.
All firms need to understand:
- Constitutional impact for mutual entities
- Market investment opportunities (wholesale and retail)
- The potential for groups of firms to issue together
- Ratings, tax and listing implications
- APRA regulations for mutual ADIs
- ASIC regulation of retail issuance
Members of the BCCM team that worked on the legislation with Treasury can help firms to understand the implications of the new law and what it means for their strategic planning.
We can provide:
- Confidential board briefings
- Senior executive briefings
- Strategic planning implementation
- Member communication consulting
Many firms will be taking advantage of the 36-month window provided by the new legislation to prepare changes to their constitutions. They will also need to focus on communicating the meaning of these constitutional changes to their members. We can assist in this work by providing:
- Consultancy to your membership/governance teams on rule changes
- Communications and messaging advice
- Production of communications resources: video, websites, editorial
- Media management
Mutual Capital Leadership Symposium Videos
Greg Hammond OAM