Chris Pearce today released for public comment a set of proposals to simplify Australia's corporate and financial services regulatory system.
The launch of the Corporate and Financial Services Regulation Review Proposals Paper took place in Sydney at the Australian Stock Exchange among an audience of key stakeholders from the corporate and financial services sectors. The proposals paper contains 35 proposals to refine and simplify aspects of corporate and financial services regulation, and were described by Mr Pearce as the most significant proposals in the corporate and financial services sector since the Corporate Law Economic Reform Program (CLERP) was concluded.
The release of the proposals for consultation is part of Mr Pearce's strategy to reduce the regulatory burden in the corporate and financial services sectors. In August this year, Mr Pearce announced that the reforms arising from the Corporate and Financial Services Regulation Review Consultation Paper will principally be achieved through the Simpler Regulatory System Bill, a draft of which will be released in early 2007 after comment on the proposals has been taken into consideration.
“The release of this proposals paper today in the hub of the Australian financial market is an exciting step forward to achieving a simpler regulatory system”, Mr Pearce said.
“In April this year, I released a consultation paper to invite comments from consumers and businesses on areas of corporate and financial services regulation to determine the most effective and efficient way of addressing the regulatory burden. These proposals are the result of that consultative process.”
The proposals take into account the views presented during consultation on the April 2006 Corporate and Financial Services Regulation Review Consultation Paper and include measures to reduce the burden of regulation in the areas of:
- financial services regulation;
- company reporting obligations;
- auditor independence;
- corporate governance;
- fundraising;
- takeovers; and
- compliance.
In releasing the paper, Mr Pearce welcomed comments from consumers and industry on the proposed regulatory reforms.
“These proposals maintain my focus on simplifying the regulatory system by Australian business to achieve continued consumer protection, minimised compliance costs, improved access to capital and enhanced accountability of regulators.
“I would like to acknowledge the valuable contribution that the Australian Securities and Investments Commission has made in assisting to develop these proposals as part of the Government's collaborative team.
“The proposals have also benefited from taking into consideration previous comments from a range of stakeholders. Having regard to the prior consultative process, and the desire to move ahead with changes so that the benefits of regulatory change can be realised as soon as possible, I intend to have a relatively short consultation period for this phase.”
Comments are sought on these proposals and whether there are any major concerns with taking these regulatory reforms forward. Written submissions may be lodged with the Treasury until 22 December 2006.
There will be opportunity early next year for further dialogue with the Treasury in the course of drafting the Bill to deal with issues of technical detail.
Please visit www.treasury.gov.au for a copy of the Corporate and Financial Services Regulation Review Proposals Paper and details on how comments on the proposals may be submitted.
16 November 2006
MELBOURNE