The Minister for Financial Services, Superannuation and Corporate Law, Chris Bowen MP, today welcomed the making of the Corporations Amendment Regulations 2010 (No. 2) and Banking Amendment Regulations 2010 (No. 1).
The Corporations Amendment Regulations require authorised deposit-taking institutions (ADIs) and general insurers to provide information relating to the Financial Claims Scheme (FCS) in Product Disclosure Statements.
"These regulations implement the objective of informing customers about the relationship between the Financial Claim Scheme and banking and insurance products," Mr Bowen said.
"They also provide ADIs and general insurers with appropriate time to update their product disclosure statements and systems in relation to disclosing the FCS."
In response to submissions made by industry during consultation, the disclosure requirements will commence for both general insurers and ADIs on 12 October 2011.
The Banking Amendment Regulations ensure that a statutory manager can be appointed under the Banking Act 1959, notwithstanding the existence of external support arrangements such as the Government's guarantee of deposits.
The regulations arise from amendments made in 2008 to implement the Financial Claims Scheme (FCS), which provides depositors in Australian-incorporated authorised deposit-taking institutions (ADIs) with a guarantee of their deposits to a prescribed threshold (currently $1 million) and provides compensation to eligible policy holders with claims against failed general insurers.
25 March 2010