The Turnbull Government has today introduced client money reforms to further protect retail investors and increase consumer confidence in the financial services sector.
As announced by the Minister for Revenue and Financial Services, the Hon Kelly O’Dwyer MP, on 8 November 2016, the Treasury Laws Amendment Bill 2016 is part of the Turnbull Government’s response to the Murray Financial System Inquiry.
Minister O’Dwyer said she was delighted to deliver the Bill.
“It is one of a suite of measures the Government is undertaking to ensure that retail consumers of financial products and services are protected, in line with community expectations, and to further enhance trust and confidence in the financial system,” Minister O’Dwyer said.
“These reforms will ensure that retail clients are better protected when a licensee such as BBY becomes insolvent, and stand as further evidence of the Government’s ongoing commitment to focus on implementing measures that make a real difference to consumers.”
The Bill amends the client money regime and follows extensive consultation earlier this year.
Minister O’Dwyer said the Bill will close a critical loophole in the protection of retail consumers, ensuring that Australian financial services firms can no longer use their retail clients’ money for their own – or other clients’ – purposes.