How would you describe the current investor services market in Asia Pacific?
The current investor service market is dynamic and ever-changing as the markets across the region vary in sophistication. As the markets feel the burden of the current health pandemic, custodians and vendors alike are in contingency mode to minimise the impact on the business as usual. Most firms are operating at core business functionality giving little attention to other services. While Goal Group continues to operate as business as usual, the investor services market will be affected due to the many players and key bodies it relies on, such as judiciaries, etc. It is at unprecedented times like these that custodians and vendors must implement robust business continuity plans to honour their obligations and protect the assets of the underlying investors.
In the Asia Pacific region, what market is showing the most activity?
Hong Kong, Japan, Singapore, and also China, because of its huge growth, show the most activity in the Asia Pacific region. There has been an increase in class action participation across the board. Investors are participating in more and more cases as a form of governance to improve accountability and influence change in the way companies they have invested in operate. It is becoming more and more popular and acceptable to seek remediation and accountability through securities litigation.
With an ever-increasing focus on economic, social and governance (ESG), with attention to corporate governance and leadership, investors are becoming more and more active. When things go wrong, investors want companies to take responsibility for their actions and be more accountable. If there is no accountability then there is no trust. This is why there has been a steady increase in opting into securities class actions.
With the increase of growth in Australia over the past few years, the number and value of cases have grown exponentially.
What would you say the biggest challenges are in the market right now?
The current biggest challenge is the current pandemic and how business and investors are equipped to operate and continue as business as usual in such a market. Markets are reliant on many parties to operate functionally to ensure fluidity in such times. In the investor services environment, which is also governed by regulators, governments and financial bodies, continuity and heightened compliance and risk pressure can add to the vulnerability. Delays in timelines, deadlines and the judiciary will cause disruptions in asset servicing across the globe.
Here is where strong leadership is paramount in any company. Here at Goal, in line with our business continuity policy, we have a dedicated crisis and business recovery team to deal with such a pandemic. We also have processing capabilities and remote systems in operation in three global regions which negate/reduce any risks. We are continuously monitoring the situation and keeping up to date with Governmental advice across all of our regions and taking any necessary action.
Meanwhile, a major issue for participants in the securities class action market in 2020 stems from a judgment recently handed down by the High Court of Australia, which impacts some class actions in Australia that are funded by litigation funders. A majority held that Australian Courts do not have the power to make what is known as a ‘common fund order’ in the early stages of litigation.
Going forward, based on the current law, the various litigation funders will likely fund new class actions as closed class actions only. To participate in future actions, it is anticipated that investors will be required to sign a litigation funding agreement at the outset.
What is Goal Group currently working on in the Asia Pacific region?
Currently, Goal Group is helping clients during this period, staying open to process claims and being accessible. We have operations in three global jurisdictions and have local and remote servicing teams working 24/6.
As class actions and tax reclamation are fiduciary obligations for super, industry and institutional investors, we have seen a huge increase in participation also due to disclosure, ESG and fund reporting requirements. This is driven by the increasing voice on corporate governance and stewardship matters, and the call for more transparent and integrative financial reporting. In a world where investors have a voice, and where transparency prevails, securities litigation is on the rise.
Investors now demand more accountability, and at the moment the spotlight is on governance and leadership, and how companies navigate turbulence and their approach to sustainability.
What were the drivers behind the relocation of Goal Group to the CBD in Melbourne? And how will this relocation help the business?
This move is to make the company more accessible to the many investors it serves in Australia, New Zealand and also be more connected to our clients in the Asia Pacific region as a whole.
Melbourne is home to many investor, industry and super funds, and it is frequented by asset managers and investor service providers from the Asia Pacific and global market. Our focus is to build our client service capacity and develop our solutions to tailor to a diverse range of investors.
Being in the CBD at a prime location helps to be accessible to clients. The new offices are housed in a prestigious A-grade building which has state of the art facilities and of course, this attracts top talent which is necessary for our expansion in the Asia Pacific market.
Looking ahead, what do you think will be the big talking points of 2020?
Today, more than ever, we need humanity and pragmatism to sail through these stormy waters. Businesses have become creative in finding solutions to the current pandemic. Operating as business as usual and being accessible in the current climate is necessary to service investor clients. Adjusting to the disruption and dealing with the complexities laid out by every system of operation is paramount is providing continuous service.
Strong leadership and reinforced accountability are principal to ensuring we do the right thing for our investors, stakeholders and our communities at large. Our economies are hurting and our communities are at risk. Now more than ever, we need to be sympathetic, agile and robust.
