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ABA WELCOMES ROUNDTABLE CONSULTATIONS ON
FINANCIAL SERVICES REFORM RED TAPE REDUCTIONS
Sydney, 14 August, 2006: The Australian Bankers’ Association (ABA) is pleased the Federal Government is moving quickly to implement refinements to the Financial Services Reform Act (FSRA) which will result in a better customer experience.
The ABA was responding to the proposals, including the bill, “Simpler Regulatory System Bill” announced today by Mr Chris Pearce, Parliamentary Secretary to the Treasurer.
David Bell, Chief Executive of the ABA, said: “Today’s announcement demonstrates the Federal Government’s commitment in responding to the Regulation Taskforce.”
“On Financial Services Reform (FSR), the ABA and its members are pleased that Federal Government is looking for ways to reduce the red tape for banks and their customers while maintaining important consumer protections. We look forward to continuing consultations on FSR which will occur through roundtable discussions.”
The ABA notes that consultation will continue on a number of issues related to the advice regime including:
- Situations where a Statement of Advice (SOA) does not have to be prepared, for example, where personal advice is given but no financial product is recommended and no remuneration received for the advice, a SOA does not need to be prepared;
- Changes to the scope of general advice – appropriate boundaries for, and between general and personal advice;
- Threshold requirements for SOA – when it’s appropriate to provide an exemption from the SOA requirements for minor advice that falls below a certain threshold;
- Streamlining the Policy Statement PS146 – training requirements.
The ABA welcomes the further discussions on the most appropriate way to address inconsistencies between legislation referring to breach reporting requirements to the Australian Securities and Investments Commission (ASIC) and the Australian Prudential Regulation Authority (APRA). The outcome should reduce the scope for duplication and inefficiencies in breach reporting.
The ABA believes these matters under consideration are consistent with the policy intent of the FSR in promoting consumer protection through a harmonised and wide-ranging licensing, disclosure and conduct regulatory framework for financial products, markets and financial services providers, and by providing consumers with the ability to compare financial products and services to make investment decisions.
For further information:
Heather Wellard
Director, Public Relations
Phone: 02 8298 0411
Mobile: 0409 830 439
ENDS
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