ASIC v ASX: Round 2

👋 G’day

Today’s brief:

• ASIC launches probe into ASX over settlement process outage.

• Midsize law firms face talent struggles.

• AI shortcut backfires in NSW court proceedings.

Grab a morning coffee while you read the latest 👇

PRACTICE POINTS

The Sequel

• It’s ASIC v ASX, Round 2. After commencing proceedings against the ASX over alleged misleading statements about its CHESS replacement program, the corporate regulator is back for another swing. ASIC has launched an investigation into the 20 December outage in the ASX’s batch settlement process, probing whether the ASX’s settlements unit breached the Corps Act: Capital Brief.

• What does bullying "at work" mean? The FWC recently ruled that "at work" can still apply, even when the bully’s on leave. In an application to the FWC, Kavita Sharma claimed she was bullied by a colleague who was on leave during part of the harassment. No matter—this didn’t stop the FWC from ruling in her favour. In fact, the fact that the bully kept it up while on leave was seen as evidence of his "relentless conduct”: Allens.

• Ultra Tune just copped another legal smackdown. The Full Federal Court upheld a $1.5m fine for contempt of court after the car service chain flouted compliance orders under the Franchising Code. Ultra Tune tried arguing the penalties were over the top—but the court wasn’t buying it. The ACCC, which also scored legal costs, called the decision a win for franchisee protection. Not Ultra Tune’s first rodeo either—they’ve already been fined over $2m for contravening conduct: ACCC.

WORD ON THE STREET

Talent struggles hit midsize law firms

• Client satisfaction tops the priority list for midsize law firms, with 71% calling it critical, up from 50% last year, per an Actionstep report. Talent acquisition and retention (59%), managing business costs (57%), and digital transformation (55%) are also key priorities for driving revenue. While most firms are confident about hitting the client satisfaction mark (only 11% see it as a challenge), talent struggles are real—45% of firms say recruiting and retention is their toughest hurdle.

• James Nicholls, M&A and ECM big wig from WA, recently made the jump to Hamilton Locke after 3 years at DLA Piper.

• Health and safety law specialist Alena Titterton moves to Johnson Winter & Slattery in Sydney after nearly a decade at Clyde & Co: Lawyerly.

• Barrenjoey is going global, setting up shop in Hong Kong to expand its reach in equity sales, research, and trading. The Aussie financial firm is steadily building its international footprint: Bloomberg.

• A lawyer’s AI shortcut just backfired—big time. The NSW Legal Services Commissioner is investigating a lawyer’s use of ChatGPT to draft court submissions that were riddled with errors. By the time the lawyer tried to fix the errors, the damage was done, forcing delays and extra work for the court. The lawyer, a 30-year veteran, admitted he copied AI-generated case summaries without checking them. Now, he’s explaining himself in an affidavit—while the court decides whether to escalate the matter: Lawyers Weekly.

TALKING POINTS

Lawyer job decline

• Over the next five years, roles for legal officials and legal secretaries are expected to decline, per a World Economic Forum Report. Not ideal. Jobs expected to grow are mostly tech, including Big Data Specialists, Fin Tech Engineers and AI and Machine Learning Specialists. Is it too late to change jobs?

• It might sound strange, but law grads need an exit strategy, says Freddie Golan, GC at Satellite Office. Pick your specialty wisely: want to go global? Corporate or banking & finance are your ticket. In-house? Real estate and construction are where the action is, thanks to Australia’s non-stop need for infrastructure: Lawyers Weekly.

• Australia’s largest business body says Labor might need to rethink its 82% renewables target by 2030, given skyrocketing energy prices and looming supply shortages. The Australian Chamber of Commerce & Industry says the government is putting “all its eggs” in renewables and wants Albanese to fast-track gas projects before we’re all left in the dark—literally: The Australian.

• Fresh US tariffs fueled global trade war fears. Markets tanked, and the Aussie dollar dipped below 61 US cents before recovering slightly. Trump hit pause on a 25% tariff hike on Mexican imports for a month to cut a deal with Mexico’s president, Claudia Sheinbaum. The result? Mexico is deploying 10,000 National Guard troops to the border to crack down on drug smuggling: The Economist.

TREASURY

DEAL ROOM

Blackstone all-in on the cas

• Blackstone is reportedly eyeing a takeover of Star Entertainment, which would provide synergies with its existing Aussie casino empire, Crown Resorts. The smart play? A move on Star once it enters voluntary administration: The Australian.

• Macquarie, the sell-side adviser for the $3bn North Queensland Airports sale, sent out a process letter to potential buyers, requesting bids before Easter, with plans to wrap up the deal by July: AFR.

• Renewables developer Ampyr Energy Global is poised to take full control of NSW’s 1000MWh Wellington battery storage system, buying out Shell’s 50% stake. The move is part of Ampyr’s bigger play to grab a 20% share of Australia’s 16GW battery market by 2030: AFR.

• Orezone, valued at C$342m (A$380m) on the Toronto Stock Exchange and backed by Resources Capital Fund, is testing Australian investors’ appetite for a local listing: AFR.

SECTOR SPECIFIC

Commodity prices take a hit

🚜 DIGGERS

• The RBA’s commodity price index inched up 0.1% in January, but don’t let that fool you—prices have tanked 11.9% over the past year. Iron ore and coking coal took the biggest hit, dragging the index lower.

• Pilbara miners are unionising. The push for mining unions is driven by frustrations over wages, conditions, and the isolation of FIFO work—missing Christmas and ending long-term relationships are regular realities. Despite mining companies’ claims that unions could hurt productivity, workers are increasingly demanding representation. Yet, Fortescue boss Twiggy reckons a culture of freedom and camaraderie at the miner means his staff are unlikely to unionise: AFR.

• Resolute Mining CEO Terry Holohan is stepping down less than three months after being freed from detention in Mali. Fair play: The Australian.

🏦 FIN

• NAB's got the M&A bug. The Big Four bank was reportedly considering acquiring non-bank lender Scottish Pacific for $1bn-plus and potentially snapping up HSBC’s retail banking arm in Australia: The Australian.

• Vanguard just shook up the asset management world by slashing fees across dozens of its mutual funds and ETFs in a historic move. Expect a ripple effect as competitors feel the pressure to follow suit: Bloomberg.

• After nearly eight years, Anna Bligh plans to step down from the peak banking body Australian Banking Association, warning that the fight against financial scammers isn’t over yet: The Australian.

🏡 RETAIL & REAL ESTATE

• The Chiconi family is testing the waters with a $75m sale of their Taylors Plains farm, a prime Wagyu beef property in outback Queensland. Spanning 34,000 hectares and able to support 6,500 cattle, this offering will be the first big test of demand for top-tier rural assets this year: AFR.

• SkyCity has settled its dispute with South Australia’s Treasurer over the taxation of electronic gaming credits. The High Court shot down SkyCity’s challenge, ruling that the ability to exchange credits for cash meant they counted as revenue. As a result, SkyCity will fork out $13.1m in extra casino duty, $24.8m in interest, and $200k to cover the Treasurer’s legal costs: Lawyerly.

📱 TECH

• Canada spits out Starlink after Trump’s tariffs. The Canadian province of Ontario will cancel its $100m contract with Elon Musk’s Starlink, saying Canada has to hit hard back at Trump: Reuters.

• Tech companies like Netflix and TikTok are jumping into the world of consumer spending with their own merch stores—TikTok Shop and Netflix Shop. Social media has flipped shopping habits, with nearly half of online consumers discovering products or buying directly through TikTok: Forbes.

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