The Crest of the Commonwealth of Australia Treasury Portfolio Ministers
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Chris Pearce

Parliamentary Secretary to the Treasurer

26 October 2004 - 3 December 2007

Media Release of 11/10/2005

NO.031

PEARCE SEEKS COMMENT ON DRAFT FSR REFINEMENT REGULATIONS

The Parliamentary Secretary to the Treasurer, Chris Pearce, today released draft regulations implementing a number of proposed refinements to Financial Services Regulation (FSR).

The refinements, originally outlined in the Refinements to Financial Services Regulation proposals paper released on 2 May 2005, are designed to improve the operation of the FSR framework.

‘In developing both the proposals paper and the draft regulations, we sought to focus on the original objective for FSR: to help consumers make informed financial decisions’, Mr Pearce said.

‘The proposals paper recognises the importance of ensuring consumers receive information that is both concise and relevant to their needs. The draft regulations develop this further and will help financial services providers communicate clearly and effectively with clients’.

The draft regulations also implement refinement proposals to improve the operation of the legislation in practice and to identify the intent of the legislation by -

  • clarifying the retail/wholesale client distinction
  • streamlining disclosure where financial services are provided through intermediaries
  • fine-tuning the general advice definition
  • defining the jurisdictional reach of the law
  • simplifying authorisation procedures for representatives.

‘The draft regulations will also reduce compliance costs and provide industry with greater certainty in complying with the law’, Mr Pearce said.

The draft regulations were developed after several months of public consultations and take account of comments received from consumer and industry representatives on the original refinement proposals.

‘Some comments have raised issues that are relatively complex and which are beyond the scope of the current set of refinements. These issues are being considered separately with input from the Business Regulation Advisory Group and will be progressed outside of the current proposal timeframe’, Mr Pearce said.

The Government seeks comment on the package of draft regulations, which is available on the Treasury website. Submissions should be received by the Treasury no later than 4 November 2005.

CANBERRA

11 October 2005
Contact: Catherine Whitby (02) 6277 2088