FINANCIAL SERVICES REFORM PROPOSED REFINEMENTS TO BENEFIT CUSTOMERS

Sydney, 2 May, 2005: The Australian Bankers’ Association (ABA) says the Federal Government's proposed refinements to the financial services reform provisions of the Corporations Act 2001 (Financial Services Reform) are sensible steps which will provide better outcomes for customers.

The ABA supports 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.

The Federal Government's proposals will mean that disclosure of information for consumers will be better aligned to consumer needs. 
David Bell, Chief Executive of the ABA, said:

“It is only to be expected that with the wide-ranging nature and impact of the FSR on consumers and the financial services industry that unintended  issues would emerge following implementation that would need addressing."

“The banking industry welcomes the Federal Government’s proposed changes today because they will more appropriately meet the objectives of the FSR and result in a better customer experience.”

“Extensive and sometimes duplicated disclosures are not in the interests of customers."

“The proposed changes will reduce the amount of paperwork and lengthy, complicated telephone banking oral scripts but will retain important disclosures so that customers get the appropriate balance of information to assist them in making informed banking and investment decisions.”


For further information:

Heather Wellard
Director, ABA Public Relations
Phone: 02 8298 0411
Mobile: 0409 830 439
 

ENDS