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Allens Arthur Robinson

Regulations in instalments

The Minister for Financial Services & Regulation, Mr Joe Hockey, has indicated that the Financial Services Reform regulations (FSR Regulations) will be released in instalments. The first instalment covered the financial markets and clearing and settlement facilities. The second instalment which has just been released covers the licensing of financial service providers and product disclosure. 

Each release will be followed by meetings of the Implementation Consultative Committee (ICC). The ICC, which consists of representatives of the financial services industry, consumer associations, insurance and industry associations, has been established to help develop the regulations. The public will also be given an opportunity to comment on the regulations within 14 days of the release of each tranche.

(Source: Minister for Financial Services & Regulation, No FSR/058, 3/08/01.)

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More FSR  policy proposal papers released by ASIC

ASIC has released another set of 4 policy proposal papers for public comment and discussion which deal with administrative issues arising from the FSR Bill. They are:

(Source: ASIC Media Release, MR01/193, 06/06/01. For more, see the media release)

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FSR Bill passes House of Representatives

The Financial Services Reform Bill 2001 (Cth) (FSR Bill) was passed by the House of Representatives on 28 June 2001 and is now before the Senate. The Minister has indicated in a speech at Bond University that the government is still targeting 1 October 2001 as the date the FSR Act will come into force.  

(Source: Daily Bills List, House of Representatives, 29/07/01. For more, see the List)

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PJSC recommends FSR Bill in current form subject to qualifications

The Parliamentary Joint statutory Committee (PJSC) has recommended that the FSR Bill (the Bill) be passed but has raised a number of concerns that PJSC would like the Government to address. In its report regarding the operation of the Bill, the PJSC made the following recommendations (Eds: only those relevant to capital markets are mentioned below):

  • ASIC be given additional funding to enable it to meet its new responsibilities under the new statutory regime;
  • the 2 year transitional period for the commencement of the new regime be retained;
  • media organisations (defined as those that carry on a business with the sole or principal purpose of providing information to the public) be exempted from the requirement of obtaining a financial services licence for those publications that contain general advice or personal advice. In respect of publications containing personal advice, a financial services licence should not be required unless the media organisation carries on the business of providing personal advice or the media's sole or principal purpose is to influence people in making decisions in relation to a particular financial product or class of financial products;
  • the requirement that a bidder or target record all telephone calls made during a takeover bid period to holders of securities in the bid class be removed and that consideration instead be given to the role that ASIC can play in supporting or monitoring self-regulation in this area;
  • the Bill should include a policy direction on matters to be taken into account by the Minister in making licensing decisions and clearing and settlement licensing decisions in the general objects clause of the Bill;
  • basic deposit products and related non-cash payment systems be exempt from the definition of financial product; and
  • disclosure requirements should not apply to pooled superannuation trusts (ie, unit trusts with a corporate trustee that operate as investment vehicles for other superannuation funds) with assets in excess of $10 million.

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