Banks want more time on competition law changes
The Australian Bankers Association (ABA) is maintaining its call for up to a one year delay in changes to competition laws to allow banks to get their houses in order.
In a submission to the Senate Economics Committee review of the Government's Competition and Consumer Amendment (Misuse of Market Power) Bill 2016, the ABA has pointed to potential impacts of the "effects test" contained in the legislation and has argued that a long transition period will be necessary.
The Government has been proposing a six month transition period to the new arrangements after the granting of Royal Assent, but the ABA is arguing that a 12 month period would be more appropriate.
The ABA's submission to the Senate Economics Committee review of the legislation has coincided with continuing criticism of the manner in which banks use their vertically-integrated structures.
"ABA's members will require detailed legal and operational advice to develop their compliance arrangements, review their activities and relationships in banking and financial markets and institutionalise their compliance arrangements across all sectors of the bank — retail, wholesale, commercial and institutional — including for the way ahead," the ABA submission said.
It said this would include new training, new compliance frameworks including policies, guidelines etc, across all products and services provided.
"Twelve months transition from the Royal Assent should be provided prior to commencement of the new section 46," the ABA submission said.
Recommended for you
Financial Services Minister Stephen Jones has shared further details on the second tranche of the Delivering Better Financial Outcomes reforms including modernising best interests duty and reforming Statements of Advice.
The Federal Court has found a company director guilty of operating unregistered managed investment schemes and carrying on a financial services business without holding an AFSL.
The Governance Institute has said ASIC’s governance arrangements are no longer “fit for purpose” in a time when financial markets are quickly innovating and cyber crime becomes a threat.
Compliance professionals working in financial services are facing burnout risk as higher workloads, coupled with the ever-changing regulation, place notable strain on staff.
