FSRB put on hold “indefinitely”
The Financial Services Reform Bill (FSRB) has been halted indefinitely after refusal by the state governments to agree with the Federal Government over corporate law reforms.
Financial Services Minister Joe Hockey says the state Attorneys-General had agreed in principle to refer powers to the Commonwealth Government to change the current set of Corporations Law. However the collective state governments said on Wednesday they will not work with the new changes under the current conditions set down by the Commonwealth Government.
While the states refusal does not specifically target the FSR Bill, Hockey says the legislation will not proceed as it was part of the greater changes to corporations law.
The impasse centers round the state's maintaining control over industrial relations legislation. However Prime Minister John Howard has stated to the Premiers that the Commonwealth is not seeking to use the referred powers for industrial relations purposes.
As such, the states have asked for the ability to opt out or alter the referral of powers and also be able to alter the scope, effect and operation of the system of regulation on a state by state basis.
Further work on the FSR Bill will not proceed until the impasse is cleared with the Government.
AUTHOR
Jason Spits
Recommended for you
After seven years at the company, Iress’ chief technology officer for wealth management APAC, Anthony Gerrits, has departed as the firm commences a search process to fill the role.
With advice firms thinking about scaling up in 2025, research has detailed the main avenues financial advisers say they have used for successful recruitment.
The board of Insignia Financial has reached a decision regarding the possible acquisition of the firm by US private equity giant Bain Capital.
Six of the seven listed financial advice licensees have reported positive share price growth in 2024, with AMP and Insignia successfully reversing earlier losses.
