Trustee companies now in federal jurisdiction
The Federal Government has now released the legislation that will bring Australia’s $510 billion trustee company sector under Commonwealth jurisdiction.
The Minister for Superannuation and Corporate Law, Senator Nick Sherry, has unveiled the Corporations Legislation Amendment (Financial Services Modernisation) Bill 2009, which at the same time as bringing trustee companies under Commonwealth jurisdiction is designed to improve consumer protections.
Commenting on the move, Sherry said the bill completely reshapes the regulation of what represents a multi-billion dollar financial services industry.
He said the new legislative regime is focused on entity-level regulation of the traditional services of trustee companies.
Sherry said the legislation would provide authority under Commonwealth law for trustee companies to perform their traditional functions, deem such services to be ‘financial services’ and require them to hold an Australian Financial Services Licence when selling such services.
He said the Australian Securities and Investments Commission would be the sole national regulator for the trustee companies sector.
AUTHOR
Mike Taylor
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