FSRB finally appears in parliament
After months of waiting, the Federal Government has finally introduced the Financial Services Reform Bill into parliament.
Financial Services Minister Joe Hockey introduced the bill with its first reading when parliament sat at 9:30 this morning. This was followed up an hour later with the second reading which opens the way for the bill to proceed to the Senate.
A spokesperson from Hockey's office stated if the bill is not referred to a committee, it is expected to be introduced into the Senate today or tomorrow.
In the second reading of the bill, Hockey says the Government has been aiming for a commencement date of July 1. However he says this would not be possible due to the need to negotiate with the states over the constitutional basis of the bill.
"We need to allow sufficient time to consult on the regulations under the Bill and for the Australian Securities and Investments Commission and industry to prepare for commencement. I will be taking all steps I can to expedite the passage of the Bill so that the transitional provisions can commence on October 1, 2001."
Hockey says the bill will assist in developing a globally competitive and consumer focused industry and was needed to deal with fragmented regulatory framework currently in place, which was creating inefficiencies and confusion for consumers and advisers.
"The Financial Services Industry report recommended the introduction of a single licensing regime for all financial sales, advice and dealing and the creation of a consistent and comparable product disclosure framework," Hockey says.
According to the Minister the bill will introduce harmonised licensing, disclosure and conduct framework for all providers and establishes a consistent financial product disclosure regime. It also streamlines the regulatory regime for financial markets and clearing and settlement facilities.
"The bill recognises that it is no longer possible for different financial institutions, services and products to be regulated under separate regulatory frameworks," he says.
The introduction of the FSRB comes only a day after Hockey introduced the Corporations Bill 2001, which sets in place some of the legal framework necessary for corporate law reform.
This was stalled late last year after a debate between the State and Federal Governments over the use of powers but was resolved in late December with NSW and Victoria agreeing to support the bill.
Late last month Queensland and Western Australia also agreed to support the bill in principle and according to comments made by Hockey in parliament yesterday, negotiations are under way with Tasmania and South Australia.
AUTHOR
Jason Spits
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