Australian Banking Regulatory Bodies Focus on Financial Services Reforms
Australia’s banking regulatory bodies are working closely together to ensure compliance with the country’s financial services regime. The Corporations Act 2001 sets out a single licensing regime for financial sales, advice, and dealings in relation to financial products, consistent and comparable financial product disclosure, and a single authorization procedure for financial exchanges and clearing and settlement facilities.
Regulatory Framework
The regulatory framework covers a wide range of financial products, including:
- Securities
- Derivatives
- General and life insurance
- Superannuation
- Margin lending
- Carbon units
- Deposit accounts
- Means of payment facilities
ASIC Guidance and Monitoring
The Australian Securities and Investments Commission (ASIC) has released regulatory guidance on compliance with the regime and is continuing to monitor progress in light of ongoing government review.
Focus Areas
Improving Financial Advice for Consumers
ASIC is working closely with other regulatory bodies to implement reforms aimed at improving financial advice for consumers. The Future of Financial Advice (FOFA) reforms are a key area of focus, and ASIC is providing guidance on compliance with these changes. The reforms aim to improve the quality of financial advice by requiring financial advisers to act in the best interests of their clients.
Regulatory Focus Areas
Other areas of regulatory focus include:
- Provision of financial product disclosure
- Dispute resolution processes
- Minimum training standards for financial advisers
Compliance and Awareness
ASIC is working to ensure that all AFS licensees are aware of their obligations under the law and are equipped with the necessary resources to comply with regulations.
Conclusion
The regulatory bodies in Australia are committed to ensuring that the country’s financial system is robust and resilient, and that consumers have access to high-quality financial advice and products. By working together to implement reforms and ensure compliance, these bodies aim to promote confidence in the financial sector and protect the interests of investors and consumers alike.