NO.031
PEARCE SEEKS COMMENT ON DRAFT FSR REFINEMENT REGULATIONS
The Parliamentary Secretary to the Treasurer, Chris Pearce, today released
draft regulations implementing a number of proposed refinements to Financial
Services Regulation (FSR).
The refinements, originally outlined in the Refinements to Financial Services
Regulation proposals paper released on 2 May 2005, are designed to improve the
operation of the FSR framework.
‘In developing both the proposals paper and the draft regulations, we
sought to focus on the original objective for FSR: to help consumers make informed
financial decisions’, Mr Pearce said.
‘The proposals paper recognises the importance of ensuring consumers
receive information that is both concise and relevant to their needs. The draft
regulations develop this further and will help financial services providers
communicate clearly and effectively with clients’.
The draft regulations also implement refinement proposals to improve the operation
of the legislation in practice and to identify the intent of the legislation
by -
- clarifying the retail/wholesale client distinction
- streamlining disclosure where financial services are provided through intermediaries
- fine-tuning the general advice definition
- defining the jurisdictional reach of the law
- simplifying authorisation procedures for representatives.
‘The draft regulations will also reduce compliance costs and provide
industry with greater certainty in complying with the law’, Mr Pearce
said.
The draft regulations were developed after several months of public consultations
and take account of comments received from consumer and industry representatives
on the original refinement proposals.
‘Some comments have raised issues that are relatively complex and which
are beyond the scope of the current set of refinements. These issues are being
considered separately with input from the Business Regulation Advisory Group
and will be progressed outside of the current proposal timeframe’, Mr
Pearce said.
The Government seeks comment on the package of draft regulations, which is
available on the Treasury
website. Submissions should be received by the Treasury no later than 4
November 2005.
CANBERRA
11 October 2005
Contact: Catherine Whitby (02) 6277 2088