The Minister for Financial Services and Regulation, Joe Hockey, today introduced ground-breaking legislation which will further empower Australian consumers of financial services through the transfer of regulatory responsibility for building societies, credit unions and friendly societies from the States and Territories to the Commonwealth.
342 building societies, credit unions and friendly societies will be involved in the regulatory transfer. These organisations represent 1326 branches nationally, with $38 billion in assets and 12,420 employees.
"This is the next step in our response to the Wallis financial system recommendations. Creating a uniform prudential environment means greater certainty for financial consumers," the Minister said.
"Along with certainty, consumers will have a greater selection of financial service providers and products. In other words, Australian consumers will have more choice. Giving consumers more choice is another example of this Governments commitment to consumer empowerment and consumer sovereignty.
"The inclusion of building societies, credit unions and friendly societies in the Commonwealth's regulatory framework will not only improve international perception of Australia's financial system, but will result in new opportunities for the entities involved as well as their customers."
These changes are part of the Governments fundamental goals of increasing competition and improving efficiency, while preserving the integrity, security and fairness of the financial system.
To effect the transfer, a package of three bills were introduced: the Financial Sector Reform (Amendments and Transitional Provisions) Bill (No. 1) 1999, the Financial Sector (Transfers of Business) Bill 1999 and the Income Tax Rates Amendment (RSAs Provided by Registered Organizations) Bill 1999.
Subject to the passage of legislation, the transfer will take place on 1 July 1999. The States and Territories will introduce complimentary legislation to facilitate these changes.