The Parliamentary Secretary to the Treasurer, Chris Pearce, has released
for comment draft regulations implementing a number of proposed refinements to Financial
Services Regulation (FSR).
The refinements, originally outlined in the Refinements to Financial Services
Regulation proposals paper released on 2 May 2005, are designed to improve the
operation of the FSR framework.
‘In developing both the proposals paper and the draft regulations, we
sought to focus on the original objective for FSR: to help consumers make informed
financial decisions’, Mr Pearce said.
‘The proposals paper recognises the importance of ensuring consumers
receive information that is both concise and relevant to their needs. The draft
regulations develop this further and will help financial services providers
communicate clearly and effectively with clients’.
The draft regulations also implement refinement proposals to improve the operation
of the legislation in practice and to identify the intent of the legislation
by –
- clarifying the retail/wholesale client distinction
- streamlining disclosure where financial services are provided through intermediaries
- fine-tuning the general advice definition
- defining the jurisdictional reach of the law
- simplifying authorisation procedures for representatives.
