The Federal Government has narrowed anti-hawking and insider trading provisions of the Corporations Act.
Amendments passed last week mean the anti-hawking provisions in section 992A will now apply only to offers of financial products to retail clients. They also ensure that the restrictions in subsection 992A(3) apply only to offers of financial products that are made in the course of, or because of, unsolicited telephone calls.
The Parliamentary Secretary to the Treasurer, Senator the Hon Ian Campbell, said today the amendments addressed industry concerns that the anti-hawking provisions applied more broadly than was necessary or desirable.
"They will ensure that the anti-hawking provisions apply only to genuine pressure selling tactics and do not prevent financial service providers from continuing with their legitimate marketing activities," Senator Campbell said.
The amendments, passed on 21 March 2002, also extend the scope of the current exceptions to the primary insider trading offence that are contained in sections 1043H to 1043J of the Corporations Act.
"They will ensure that the insider trading provisions do not jeopardise the capacity of over the counter market makers to manage risk through the use of derivative products," Senator Campbell said.
"The amendments demonstrate the Government's willingness to refine the law where unintentional barriers to business may have emerged.
"We are set on having a flexible, pro-business approach without compromising the integrity of the legislation and making sure implementation goes smoothly for all stakeholders."
The amendments are contained in the Financial Services Reform (Consequential Provisions) Bill 2002.
PERTH
25 March 2002
http://parlsec.treasurer.gov.au
Contact: Wayne Grant, Senator Campbell's Office
08 9325 4227 or 0407 845 280