CAMAC LONG TAIL LIABILITIES

Date: 22/12/2006

Title: CAMAC - Long tail liabilities

Type: Policy & Advocacy: Submission

Abstract:

This submission relates to a reference on the treatment of future unascertained person injury claims from the Parliamentary Secretary to the Treasurer to the Corporations and Markets Advisory Committee dated 12 October 2005 (Reference).

Regulation of corporations which are required to account for provisions in respect of actuarially certain future mass claims exposures to take account of those provisions may be appropriate in some specifically defined circumstances.  However, the legislation should provide genuine guidance and certainty to directors in terms of its application and what must be done to comply with it. The currently proposed threshold test is too uncertain and onerous to be applied.

File:
CAMAC_longtailliabilities_1206FBW.pdf