Carlin, Tyrone M; Ford, Guy --- "Editorial" [2006] JlLawFinMgmt 1; (2006) 5(1) Journal of Law and Financial Management 7

Editorial

A number of papers published in earlier editions of this journal have focused on the manner in which long term contractual mechanisms might operate to replace traditional bureaucratic systems of control. The recourse to contractual solutions is often motivated by a desire for increased operational flexibility and material cost savings in comparison to other competing management models.

However, there are considerable risks attendant to the pursuit of a strategy of contractualisation as a means of optimising organisational performance. These include uncertainty as to the interpretation and enforcement of contractual arrangements in the context of a dispute, and the manner in which control and accountability systems can be configured to assist with effective management in contractualised settings. In this edition, Suresh Cuganesan, Jim Rooney and Riccardo Silvi make a highly valuable contribution by examining the operation of outsourcing contracts in the context of the Australian financial services industry.

Continuing this edition’s focus on the financial services industry, Pelma Rajapakse provides a detailed review of law and practice issues pertaining to mortgage origination in the context of securitisation programs. This article includes particular focus on the important question of the concept of security as it relates to the mortgage securitisation process and of the impact of APRA capital adequacy guidelines on various stakeholders in the mortgage origination chain.

Finally, Tom Valentine provides a thought provoking examination of share return parity relationships between the Australian and U.S equity markets.

Tyrone M Carlin & Guy Ford

Sydney, June 2006