Fed govt may provide SOA relief

By Ross Kelly

The Federal Government has given the strongest indication yet that it will scale back some aspects of the Financial Services Reform Act (FSRA), with Parliamentary Secretary to the Treasurer Chris Pearce announcing last week that he was working on a series of proposed refinements to the legislation.

“I am committed to ensuring that the Government plays its part to improve the operation of the FSRA disclosure regime in addressing any inadequacies... in the legislative framework,” Pearce told students at the Australian Securities and Investments Commission (ASIC) summer school.

“To this end, I am working on a series of proposed refinements that I believe will improve the operation of the legislation.”

Although he didn’t specify which aspects of the legislation will be reviewed, Pearce hinted at revisiting statements of advice.

“I am aware of strongly held views in a few quarters that the requirements have resulted in such lengthy and complex documents that consumers are actually worse off than if they received no information at all,” he said.

Pearce said the refinements would be based on feedback received from industry, consumer groups, Treasury, ASIC and the Financial Sector Advisory Committee (FSAC).

Last September, the FSAC published a report warning excessive legislation could result in a confusing and costly regulatory framework and hamper business investment opportunities.

Pearce said once feedback from the various stakeholders has been received, he would “lead a process of consultation” with industry and consumer representatives.

“I cannot promise that the Government will agree to every suggestion... However, I can assure you that we will give careful considerations to all suggestions,” he said.