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RED TAPE REDUCTIONS WELCOMED ON FINANCIAL SERVICES REFORM
Sydney, 24 May, 2007: The Australian Bankers’ Association (ABA) has welcomed the Federal Government’s commitment to reducing red tape which should result in a better experience for bank customers.
The ABA was responding to the introduction into Parliament today of the Corporations Legislation Amendment (Simpler Regulatory System) Bill by Mr Chris Pearce, Parliamentary Secretary to the Treasurer.
This Bill implements refinements to corporations law and financial services regulations, and in doing so, responds to a number of recommendations made by the Regulation Taskforce, chaired by Mr Gary Banks.
David Bell, Chief Executive of the ABA, said: “The ABA is pleased that the Federal Government continues to refine the legal and regulatory requirements that apply to financial service providers. These reforms will reduce red tape for banks and
their customers without compromising important consumer protections.”
“Some of the changes affect Statements of Advice (SOA) which have previously resulted in unnecessary compliance costs for industry and unwieldy disclosure documents for consumers. Now, financial service providers can better target
financial product information.”
The ABA welcomes the refinements including:
- reduced disclosure requirements for financial products, making it simpler for consumers and less onerous for financial service providers;
- better recognition of ‘sophisticated’ investors in the law, meaning that some investors who find current disclosures unnecessary to assist them in making
- an informed decision, will no longer have to receive lengthy disclosure documents when they get financial advice; and
- streamlined reporting obligations for financial service providers and reporting entities, for example, the ability to distribute company annual reports via the Internet or other electronic means.
Mr Bell said: “It is pleasing that the Government is seeking to introduce company reporting changes so that reporting entities can take advantage of the reforms for the 2006-07 reporting period.”
“The ABA continues to work with Government and consumer representatives on refinements that better address the balance between costs for industry and protections for consumers relating to the scope of the advice regime. The banking sector supports a solution that is practical and addresses industry and consumer concerns with how the advice regime captures simple financial products.”
The Bill as introduced today contains a number of important reforms. The ABA is pleased to continue to work with the Federal Government on those reforms that require further consideration.
For further information:
Heather Wellard
Director, Public Relations
Phone: 02 8298 0411
Mobile: 0409 830 439
ENDS
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