Australia financial services reform bill - A sledge hammer?

SYDNEY, Australia – If the problem is a peanut, don’t use a sledgehammer. That’s the message that the Credit Union Service Corporation of Australia, Ltd. (CUSCAL) is trying to deliver to the Federal Members of Parliament. The legislative group has proposed a new licensing and disclosure regime for financial services called the Financial Services Reform Bill 2001 (FSR). FSR would issue new training requirements for providers of financial products and services and covers products from those that involve high risk to the plain vanilla services. It is the plain vanilla basic deposit accounts that are being hotly debated by the MPs. Coalition MPs wish the basic deposit products to be exempted. Opposition MPs want to include basic deposit products in the regime. CUSCAL CEO Steve Laue stated that “Credit unions are happy to accept the inclusion of basic deposit products in the Financial Services Reform Bill 2001 regime, as long as the regime is applied flexibly and in proportion to the consumer risks it is meant to cover.” Laue also quoted “Minister for Financial Services and Regulation, Joe Hockey as saying, “proportionality is the key to an effective regulatory regime.” [email protected]