The Minister for Financial Services & Regulation, Joe Hockey, today released the draft Financial Services Reform Bill that will put Australia at the international forefront in the regulation of financial services.
The draft legislation puts into effect proposals contained in the Governments Corporate Law Economic Reform Program 6 (CLERP 6) consultation paper Financial Products, Service Providers and Markets An Integrated Framework', released in March 1999, and will implement a number of recommendations of the Financial System Inquiry.
"This reform is nothing short of revolutionary. It is a total overhaul of financial services in Australia," the Minister said. "The Bill will lead to a more flexible and responsive financial system and put Australia at the international forefront of financial services regulation."
Key aspects of the draft legislation are:
- uniform regulation of all financial products;
- a single licensing framework for financial service providers;
- minimum standards of conduct for financial service providers dealing with retail clients;
- uniform disclosure obligations for all financial products provided to retail clients;
- flexibility for authorisation of market operators and clearing and settlement facilities.
Comments on the draft provisions should be sent to the Treasury by 12 May 2000.
"I am keen to get legislation into the Parliament this year with possible start on 1 January 2001. I have asked Treasury to convene round table discussions with interested players as a means of focussing discussion and resolving issues."
The draft legislation is available on: www.treasury.gov.au and the AusInfo Bookshops.