AUSTRALIA Law and Practice Contributed by: Andrew Stone, Dhanushka Jayawardena, Andrew Choi and Chris Kinsella, Holding Redlich
ing international practices and will help to uplift any organisation’s AI maturity. 3.11 Anticipated Changes for Fund Managers The Privacy and Other Legislation Amendment Act 2024 (Cth) introduces significant new transparency requirements for automated decision-making that will take effect on 10 December 2026. The key requirements are as follows. • Enhanced privacy policy disclosure – if entities use automated decision-making, they must include certain information in their privacy policies. Spe - cifically, businesses must update privacy poli - cies to disclose the types of personal information used, decisions made by computer programs, and human-assisted decisions influenced by automa - tion. • Detailed information requirements – organisations will need to include in their privacy policies: (a) the types of personal information used and whether decisions are fully automated or sub - stantially assisted by AI; and (b) details when using automated decision-making that impacts individuals’ rights or interests. • New individual rights – the Australian government has accepted a recommendation to create a new right for individuals to request information about substantially automated decisions that impact them. This relates to substantially automated deci - sions with legal or similarly significant effect. Implementation Timeline The new obligation to disclose the use of personal information for automated decision-making will com - Organisations should prepare by conducting audits of current and planned automated decision-making technologies, assessing their impact on individual rights, and updating privacy policies. This represents part of the most substantial change to Australia’s privacy regime since its inception. Specifi - cally, the focus is on increasing transparency around mence in December 2026. Preparation Requirements
how automated systems make decisions that affect individuals.
4. Investors 4.1 Types of Investors in Alternative Funds Investors in Australian-focused alternative funds include Australian and international sovereign wealth funds, superannuation funds, endowments and other institutional investors, family offices, wealth platforms, and high net worth individuals. The Australian Private Capital 2025 Yearbook, pub - lished by Preqin, specifies that: • Australian-focused private capital assets under management as at September 2024 totalled AUD139 billion – of which, AUD65 billion is in private equity, venture capital and private credit funds; • the proportion of investors from Asia has doubled in the five years prior to the date of the report; • family offices have overtaken superannuation funds as the biggest cohort of active private capital investors by number; • family offices now make up 40% of private capital investors (up from 10% four years ago); and • regardless of their geographic focus, Australian- domiciled managers experienced a 14% year-on- year decline in capital raised in 2024 compared to 2023 – although this was a decline, the extent of the decline is lower than the decline experienced by fund managers based in North America (-26%), Asia (-49%), and the rest of world (-89%). Australian superannuation funds can be a particular source of interest to foreign managers. Trusted rela - tionships with those funds are built by managers over many years. 4.2 Side Letters Subject to the comments that follow, side letters are widely used. There are no restrictions on what they cover. Side letters in the context of registered managed investment schemes are not widely used. One rea -
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