Home       What's New?       Corporate       Business       Published Information       Ministers       Related Websites

Refinements to Financial Services Regulation

Date:

Monday, 19 December 2005

Content ID:

1048

Abstract:

On 19 December 2005, the Parliamentary Secretary to the Treasurer announced that the implementation of the Refinements to Financial Services Regulation (FSR) has been finalised. The FSR Refinements project was an Australian Government initiative to promote effective communication with consumers, so they can make well-informed decisions about their financial future, and to reduce the compliance burden.

The FSR refinements, which were contained in a proposals paper released on 2 May 2005 (see below), have been implemented via regulations and the issue of guidance and relief by the Australian Securities and Investments Commission.

The Corporations Amendment Regulations to implement the majority of the FSR refinements and Explanatory Statement are available on the ComLaw website.

The financial services regulatory framework was substantially amended by the introduction of the Financial Services Reform Act 2001 (now contained in Chapter 7 of the Corporations Act 2001), which came into full effect on 11 March 2004.

There is strong community support for the improvements to the regulatory framework and the standards brought about by this reform to financial services regulation (FSR). However, in light of stakeholders’ day-to-day experience with the legislation, it became clear that some aspects of the regulation of financial services would benefit from refinement to improve their practical operation.

The intention underlying the refinements is to:

  • Ensure that consumers receive information that is relevant to their needs;
  • Reduce the compliance burden on industry; and
  • Clarify the intent of the legislation that applies to the financial services industry.

An important focus of the refinements has been on disclosure to ensure that the original intent of the reforms, to assist consumers in making their own well-informed decisions about financial services, was delivered on. The regulations encourage the production of disclosure documents that have less duplicated information and are more directly relevant to consumers’ needs. The regulations also provide for more simple oral disclosure and streamlined disclosure in relation to basic deposit products and general insurance products.

The regulations are also designed to reduce the compliance burden on industry and to provide greater certainty as to how to comply with their technical obligations under the law.

An information package which summarises the FSR Refinements is available below.

Telephone enquiries should be directed to David Love on (02) 6263 3962.

Documents Available:


Acrobat (PDF) documents

 Acrobat (PDF)

Information Package – Refinements to Financial Services Regulation  91.96kb

Microsoft Word (RTF) documents

 Microsoft Word (RTF)

Information Package – Refinements to Financial Services Regulation  79.00kb

Related Items:

Exposure Draft Regulations – FSR Refinements - 11/10/2005
The abstract for this content item contains formatting that cannot be displayed in this list. Please follow the hyperlink to the item for more detail.
Refinements to Financial Services Regulation - Proposals Paper May 2005 - 2/05/2005
The abstract for this content item contains formatting that cannot be displayed in this list. Please follow the hyperlink to the item for more detail.

Treasury Portfolio Ministers - Link to website MoreSuper  - Link to website Carbon Price Modelling - Link to Website Clean Energy Future  - Link to website Review of compensation arrangements for consumers of financial services - Consultation Paper  - Link to website

spacer