The Provic Association was formed on the 12th December 1977 to originally represent Solicitors’ Mortgage Investment Companies (SMICs) in Victoria. Qualifications for membership was limited to companies holding a Dealers’ Licence as a Solicitors’ Mortgage Investment Company under the provisions of the then Securities Industry (Victoria) Code. There were seven (7) founding members, four (1) of whom are still members today.
The Association now represents debenture issuing companies who have Trust Deeds with Trustee companies.
Although traditionally Provic members were associated with legal firms, they are not controlled by the Law Institute of Victoria.
Past history as to licences and exemptions
Prior to 1985 Provic members did not hold any licences under the Securities Industry (Victoria) Code as they argued they were not “making offers to the public”. After the Dawson Inquiry in the mid 1970’s negotiations occurred between the Association and the Law Institute of Victoria to bring the Companies within the provisions of the Legal Professional Practice Act 1958 and control by the Institute. Legislation to this effect was drafted, but never presented to Parliament.
In 1983 the then Attorney General, Mr Kennan Q.C., MLA, determined that Provic members would be brought under the control of the then Commissioner of Corporate Affairs and in February 1985 Dealers’ Licences with conditions and exemptions were issued to the then original seven companies.
These licences were issued after extensive discussion with and advice from Corporate Affairs and with the support and co-operation of the Law Institute, the Attorney General and our Association. The terms and conditions of the licenses were based on the historical operation of the Companies and conditions contained in licenses of other dealers, eg. Stockbrokers.
The Dealers’ Licences were issued under section 48 of the Securities Industry (Victoria) code and exemptions were granted under section 215C of the Companies (Victoria) code and required the personal guarantees of all the directors in favour of the investors.