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Allens Arthur Robinson

News 2000 - 2001

Archive 2000 - 2001

For the latest FSR news, see our Breaking News page.

ASIC announces project to look at disclosure of fees and charges
20 December 2001

ASIC today announced the first stage of a new project to promote better disclosure of fees and charges in product disclosure statements for investment products. This new project follows on from the release on 28 November of ASIC PS 168 Disclosure: Product disclosure statements (and other disclosure obligations). The purpose of the project is to help consumers have a better understanding of investment products and to be able to compare fees for similar investment products. ASIC will be preparing an options paper which is due for release by late March 2002.

ASX releases exposure draft of proposed changes to ASX Listing Rules
20 December 2001

ASX has released an exposure draft of proposed changes to the ASX Listing Rules which need to be made as a result of the commencement of the FSR legislation.

Comments on the proposed changes are invited and must be sent by 18 January 2001 to:

Catherine Officer
National Companies Counsel
ASX
Fax: (02) 9241 7620
Email: catherine.officer@asx.com.au

ASIC releases policy statement on financial requirements
20 December 2001

ASIC has released policy statement (PS) 166 Licensing: Financial Requirements. This policy statement deals with the financial resource requirements for financial service providers.

The release of this policy statement completes the set of ASIC policy statements to be issued for the administration of the new financial services licensing provisions under the FSR legislation.

ASIC has also announced that it is presently considering whether it will issue guidelines about disclosure of ethical investing considerations under the FSR legislation and, if so, what the guidelines should contain. ASIC is inviting public comment on the role it should have in providing such guidance. Comments can be sent to ASIC by email at FSRProjectOffice@asic.gov.au.

Government releases draft regulations under second stage of FSR regulations
19 December 2001

The Government has released the draft of the second stage of the Financial Services Reform regulations together with commentary on the proposed regulations. These draft regulations build on the first set of regulations which were proclaimed by the Governor-General on 8 October 2001. A list of the issues and significant regulations still to be addressed by the Government is contained in Attachment A to the document containing the commentary on the draft regulations.
Comments on these draft regulations are invited and may be sent by 31 January 2001 by email to fsr@treasury.gov.au or by post or fax to:

Ms Ruth Smith
Specialist Adviser
Financial Markets Division
The Treasury
Langton Crescent
PARKES ACT 2600
Fax: (02) 6263 2882

Reforms will affect more than financial services
13 December 2001

From early next year, the sale or issue of general insurance policies following an unsolicited meeting or unsolicited personal contact may contravene the Corporations Act, as a result of recent developments in the Financial Services Reform Act. For more, read our update by Senior Associate Mark Lindfield.

ASIC releases six policy statements and a guidance paper on implementation of the FSR legislation
28 November 2001

ASIC has released six policy statements and a guidance paper dealing with how it will approach the administration of the licensing and product disclosure provisions under the FSR legislation.

The policy statements (PS) are:

PS 146 Licensing: Training of financial product advisers
PS 164 Licensing: Organisational capacities
PS 165 Licensing: Internal and external dispute resolution
PS 167 Licensing: Discretionary powers and transition
PS 168 Disclosure: Product disclosure statements (and other disclosure obligations)
PS 169 Disclosure: Discretionary powers and transition.

The guidance paper is on Licensing: The scope of the licensing regime: Financial product advice and dealing - An ASIC guide.

The purpose of these papers is to provide existing and new financial service providers with as much guidance as possible before the commencement of the FSR legislation on 11 March 2002 to help them prepare for the new regulatory regime.

ASIC will also be issuing further process-related publications over the next few months, including a licensing kit in early February 2002.

ASIC releases draft policy statement on financial requirements
16 November 2001

ASIC has released a draft Policy Statement, PS166 'Licensing: Financial Requirements' which deals with financial resources requirements for non-APRA regulated financial service providers under the FSR Act.

The draft policy statement was developed following:

public consultation on ASIC's PPP No 10 on 'Licensing: Financial Requirements'; and
consultation with industry bodies about the requirements for licensees who hold substantial amounts of clients' money or who enter into transactions directly with their clients.

ASIC has released this policy statement in draft to facilitate further public consultation. ASIC also proposes to meet with industry bodies to discuss the practical impact of some of the proposed requirements outlined in the policy statement.

Public comments on the draft policy statement should be sent by Friday, 30 November to:

Roxanna Irvin
FSR Project Office
Regulatory Policy Branch
Australian Securities & Investments Commission
GPO Box 4866
Sydney
NSW 1042
email: FSRProjectOffice@asic.gov.au

ASIC aims to finalise and publish this policy in December.

ASIC releases policy proposal paper on Australian market licences
2 November 2001

ASIC has released its eleventh policy proposal paper on FSR - Australian market licences: Australian operators.
PPP 11 describes ASIC's role in the licensing of new markets, supervising market operators and the FSR compliance obligations of Australian market licensees. It also sets out:

ASIC's preliminary views on when an Australian market licence is required;
how ASIC proposes to interpret the obligations of market licensees whose principal place of business is Australia; and
how ASIC proposes to deal with applications for an Australian market licence by an Australian operator.
ASIC has invited feedback on this policy paper.

Comments should be sent by Friday, 30 November to:

Roxanna Irvin
Regulatory Policy Branch
Australian Securities & Investments Commission
GPO Box 4866
Sydney NSW 1042
email: FSRProjectOffice@asic.gov.au

ASIC releases further guidance papers
25 October 2001

ASIC has released two further guidance papers, dealing with its implementation of the FSR legislation.

The first paper, Licensing and Disclosure: Making the transition to the FSR regime, provides guidance on how the key financial services licensing and product disclosure transition provisions work. It also outlines how ASIC will deal with applications from existing financial services providers for licences under the FSR legislation.

The second paper provides details about the licensing process and details of the types of licences for which financial services providers can apply under the FSR legislation.

For further details on the timetable for ASIC's publications on the administrative implementation of the FSR legislation, see ASIC's Supplement to Building the FSRB Administrative Framework.

FSR regulations receive assent
10 October 2001

The Governor-General has now given Royal Assent to the regulations relating to the Financial Services Reform Act 2001 (Cth). The regulations were finalised following public and industry consultation with Treasury over the last few months. They cover:

licensing of financial markets and clearing and settlement facilities;
licensing of providers of financial services;
financial product disclosure; and
consequential and transitional matters.

The regulations are available here.

Further issues arising out of the consultation process will be considered in the second stage of the regulation process. These include: the operation of the exemption given to media companies; the treatment of derivatives (particularly warrants); and, whether regulations are needed for the disclosure of labour standard claims and the environmental, social or ethical considerations of investments.

FSR Bills receive assent
27 September 2001

The Financial Services Reform Act 2001 (Cth) (FSR Act) and the Financial Services Reform (Consequential Provisions) Act 2001 (FSRCP) received Royal Assent on 27 September 2001.

This is the final step in the journey from Bill to Act of Parliament.

The main start date for the new FSR regime is 11 March 2002. However, some parts of the FSR Act (most notably, the new provisions dealing with the definition of 'associates') and a number of the transitional provisions contained in the FSRCP Act start on the date of Royal Assent (ie, 27 September).

Over the last 10 days, the Government has released several sets of revised draft regulations and new transitional regulations, details of which are set out below. The most recent set was released on 26 September and deals specfically with disclosure requirements relating to the issue and sale of financial products, particularly for superannuation products and retirement savings accounts. They also cover cooling-off requirements and a number of related miscellaneous requirements.
The FSR regulations are expected to be finalised within the next few weeks. Also, ASIC is expected to finalise its Policy Proposals on FSR by early December.

Government releases more revised draft regulations and draft transitional regulations
25 September 2001

The Government has released two more sets of draft regulations as part of its FSR package.

The first set covers proposed transitional arrangements for certain conduct requirements for financial services licensees. This includes dealing with client money and property, reporting requirements and financial records, statements and audit matters.

The second set contains further revised draft regulations on:

licensing of financial services providers (including licence requirements and conditions imposed on licences,
applying for a licence, conditions imposed on licences and alternative dispute resolution systems);
disclosure requirements for financial services providers and their authorised representatives; and
further regulations in relation to dealings with client money and property, reporting requirements and financial records, statements and audit.

The Government has requested public comments on the draft regulations to be provided to fsr@treasury.gov.au by 9 October.

Government releases revised draft regulations and draft transitional regulations
21 September 2001

The Government has released two further sets of draft regulations relating to FSR.

The first set deal with:

licensing financial markets;
licensing clearing and settlement facilities;
title to and transfer of securities and other financial products; and
transitional arrangements relating to rules (such as business rules and listing rules) of, and directions and notices issued by, securities and futures exchanges (including ASX and SFE) before and during the transitional period.

The second set contains some further transitional provisions relating to:

licensing financial services providers;
disclosure requirements for financial services providers and their authorised representatives; and
financial product disclosure requirements.

The Government has requested public comments on the draft regulations, which must be provided to fsr@treasury.gov.au by 5 October.

ASIC releases policy proposal paper on financial requirements
21 September 2001

ASIC has released its tenth proposal paper on FSR administration - Licensing: Financial Requirements.
PPP 10 sets out the financial requirements that AFS licensees (other than those regulated by APRA) will be required to meet.

All non-APRA regulated licensees must have in place appropriate risk management systems to address financial objectives. In addition, they must be solvent, have positive NTA, and have sufficient cash resources to cover 3 months based on unfavourable assumptions.

Licensees who are responsible entities of registered managed investment schemes, IDPS operators, or providers of custodial or depository services will be required to meet higher NTA requirements, reflecting current policy.
Over the next five weeks, ASIC will discuss the paper with industry and consumer representatives. Comments should be sent to:

Roxanna Irvin, FSR Project Office
Regulatory Policy Branch, Australian Securities & Investments Commission
GPO Box 4866, Sydney NSW 1042
email: FSRProjectOffice@asic.gov.au
by Monday 29 October 2001.

ASIC releases supplement and revises timetable for FSR publications
11 September 2001

ASIC has issued a supplement to Building the FSRB Framework, released in April 2001. According to the supplement, ASIC aims to have issued by 1 December 2001 those policy publications that are most important to implementing the FSR legislation. It will actively review its issued policy publications before commencement of the FSR legislation and during the transition period, enabling it to refine policies as necessary.

The supplement:

confirms ASIC's general approach to implementing FSR;
updates descriptions of ASIC's planned publications;
sets out ASIC's revised publication timetable; and
updates how you can keep up to date with developments and make inquiries about ASIC's implementation plans.

The revised publication timetable is based on indications by the Commonwealth Department of Treasury that the FSR regulations will be finalised by early October 2001. The press release which accompanied the supplement also contains information about who to contact for:

general inquiries about ASIC's implementation of FSR; and
copies of the supplement and the FSR Bill and draft Regulations.

FSR delayed: new 11 March 2002 start date
30 August 2001

The Government has announced that the new FSR regime will commence on 11 March 2002. For more, see Joe Hockey's press statement(16KB pdf).

Third package of FSR Regulations released
28 August 2001

The Government has released the third package of draft FSR Regulations relating to:

disclosure requirements for superannuation products and retirement savings accounts;
cooling off requirements; and
other miscellaneous provisions.

Click to download a pdf version of the regulations and commentary (700KB).

FSR Bill through the Senate
23 August 2001

The FSR Bill has passed through the Senate (click for Joe Hockey's press release). The Bill will now go to the House of Representatives to approve the Senate amendments.

Second package of FSR Regulations released
16 August 2001

The Government has released the second package of draft FSR Regulations relating to:

licensing of financial service providers
financial services disclosure
other provisions relating to conduct

Click to download a pdf version of the regulations (253 KB) and commentary (88KB)

PJSC report into FSRB released
16 August 2001

The Parliamentary Joint Statutory Committee has delivered its report into the Financial Services Reform Bill. It states the Committee's concerns and recommended amendments to the Bill.

First package of FSR Regulations released
8 August 2001

The Government has released the first package of draft FSR Regulations relating to:

licensing of financial markets
licensing of clearing and settlement facilities
fees
ASIC

Click to download a pdf version (386 KB)

ASIC updates its training register
3 August 2001

ASIC has published its updated register of compliant training courses for authorised representatives.

New Corporations Law system for Australia
15 July 2001

On 15 July 2001, The Commonwealth's Corporations Act became effective, replacing the previous state-based Corporations Law regime. For more, see the joint press release from Joe Hockey and Daryl Williams.

New Corporations Law on 15 July?
29 June 2001

The States and Territories have referred their corporations powers. Mr Hockey and Mr Williams have stated that they expect the new Commonwealth Corporations Act to come into effect on 15 July 2001.

FSR amendments released
20 June 2001

The Government has released its first set of amendments to the Financial Services Reform Bill.

ASIC releases second package of Policy Proposal Papers
6 June 2001

ASIC has released the following Policy Proposal Papers for comment:

PJSC report into referral bills released
May 2001

The Parliamentary Joint Statutory Committee has delivered its report into the Corporations Bill. It has recommended that the Bill be passed without amendment and be enacted by 1 July 2001.

ASIC releases the first FSR policies
26 April 2001

ASIC has released the following set of policy proposal papers and process guidelines for comment:

Building the FSRB Administrative Framework: Policy to implement the Financial Services Reform Bill 2001
Licensing: The scope of the licensing regime: Financial product advice and dealing
Licensing: Organisational capacities
Licensing: Adapting IPS 146 to the Financial Services Reform regime
Disclosure: Product disclosure statements (and other disclosure obligations)
Disclosure: Discretionary powers and transition
Licensing Process Guideline: How do you get an Australian Financial Services Licence? [Note: link to document no longer available.]

FSR Bill introduced - start delayed
5 April 2001

Mr Hockey introduced the Financial Services Reform Bill 2001 into parliament today. In introducing the Bill, Mr Hockey acknowledged that the new regime's planned start date of 1 July 2001 will not be met. Instead he said he will be consulting with "interested parties to determine an appropriate commencement date". For more, see the Bill and Explanatory Memorandum, Mr Hockey's Second Reading speech (33KB pdf), and his Press Release. The Bill contains changes from the previous draft, which our site is based on - we will update it as soon as possible.

Commonwealth introduces Referral Legislation
4 April 2001

Following the passage of referral legislation through the NSW Parliament, Mr Hockey has introduced the Corporations Bill 2001 and the Australian Securities and Investments Commission Bill 2001 into Federal Parliament. The move clearly puts the pressure on South Australia and Tasmania - these States have yet to agree to the referral regime. Mr Hockey's press release says that he hopes both states will join the scheme by its anticipated start date, 1 July.

Referral Legislation passed in NSW
29 March 2001

NSW Parliament has passed its Corporations Law referral legislation, making it the first state to do so. This opens the way for the Commonwealth to introduce its Corporations Bill, the first step to making the Corporations Law a piece of Commonwealth Legislation

Corporations Law - a solution in sight?
23 March 2001

In a meeting on 23 March 2001 all the States and the Commonwealth agreed to work towards a referral of the States' corporations powers by 1 July 2001. SA and Tasmania still have a number of concerns, but have agreed to work towards the deadline. While this is the first step towards a solution, until all States refer their powers the possibility of a split system remains. For more, see the press release from Joe Hockey and Daryl Williams.

Victoria introduces referral legislation
20 March 2001

Victoria has joined NSW and introduced legislation into parliament to refer its corporations powers to the Commonwealth.

Referrals Bills released
8 March 2001

The Commonwealth Government has released its Corporations Bill 2001 and the ASIC Bill 2001 (724KB PDF), which will form the basis of a referral of powers by the States. The release of the bills follows the introduction of legislation in the NSW parliament to bring into effect the agreement between the Commonwealth, NSW and Victoria. For more, see the NSW Bill and Explanatory Memorandum (92KB PDF).

New WA Government may accept Commonwealth deal
23 February 2001

Brief update: WA's new Attorney General Jim McGinty, in an interview with the Australian Financial Review, foreshadowed joining NSW and Victoria in agreeing to refer the State's corporations powers to the Commonwealth. If WA accepts the deal, SA will be the only State to indicate it won't.

New table of obligations to retail clients

14 February 2001
Not sure what your obligations are to your retail clients? Confused about the documents you have to provide? We've put together a table to help you figure out who you should be providing with what, plus a collection of short descriptions to give you more information.

ASIC announces timetable
8 February 2001

The Australian Securities and Investments Commission has announced its proposed timetable for releasing policy proposal papers and other guidelines for implementing the Financial Services Reform Bill. For more, see the ASIC press release.

Hockey says he'll press ahead with reform
2 February 2001

Joe Hockey said he would press ahead with FSR, without the backing of all the states if necessary, in a speech to a Committee for the Economic Development of Australia lunch today. He foreshadowed introducing FSR Bill into parliament in February or March 2001.

Mr Hockey also stressed the cost to business of uncertainty about the Corporations Law and commented that prospectuses had started to include commentary on this issue. He said the Government is "looking to implement a new Corporations Law regime for the Commonwealth of Australia from 1 July this year".

WA says no to Commonwealth deal

22 December 2000

In a new deal with the Commonwealth, NSW and Victoria have agreed to refer their corporations powers. But WA rejected the deal, while SA said Cabinet would consider the deal, but "it was not particularly encouraging". For more, see press releases from the Prime Minister and Joe Hockey and Darryl Williams.

Register of authorised training representatives released
4 December 2000

ASIC has released a register of the training courses and individual assessment services which meet its minimum requirements for knowledge, skills and integrity of authorised representatives under IPS 146.

NSW the first state to introduce referral bill
30 November 2000

On 30 November 2000, NSW introduced the Corporations (Commonwealth Powers) Bill 2000, becoming the first State to introduce legislation to refer its corporations powers to the Commonwealth. The Explanatory Note to the Bill sets out NSW's intention that any future amendments to the Corporations Law are to be examined by the Ministerial Council for Corporations before the Commonwealth enacts them.

FSR on hold; States accused of derailment
29 November 2000

FSR is on hold indefinitely, according to a press release from the Federal Financial Services Minister, Joe Hockey, who blames the States. Their proposals, he says, could lead to "non-uniform regulation and a lack of certainty for business and investment across Australia". Meanwhile, a press release by the Federal Attorney-General, Daryl Williams, accuses the States of derailing the reform process, which has "become bogged down by rhetoric and political point-scoring".

PM reassures States, but no solution in sight
28 November 2000

John Howard intervened in the Corporations Law problem, reassuring the States that the Commonwealth's proposed solution posed no threat to their industrial relations systems. But, in a surprise move, the States responded by presenting the Commonwealth with their own referral legislation at a meeting on 28 November.

ASIC releases guidance on training
21 November 2000

The Australian Securities and Investment Commission has released guidance on training for authorised representatives, including a set of frequently asked questions, to help industry players. This builds on ASIC's Interim Policy Statement 146 (Training of Authorised Representatives), released on 6 September 1999.

Attorneys-General meet, but fail to find a solution
17 November 2000

A meeting of Australia's Attorneys-General failed to find a solution to the constitutional problem. It was recognised that the States were unlikely to meet the 1 January 2001 deadline for passing legislation to fix the problem. The 1 July 2001 deadline for the start of FSR was questioned by two States. Joe Hockey and Daryl Williams released a joint press release that blamed the States for causing "uncertainty for business".

Enhanced powers for ASIC
9 November 2000

According to a press release from Joe Hockey, the Australian Securities and Investments Commission will be given enhanced powers to audit Australia's exchanges as part of FSR. For more, see the press release (a 24.4KB pdf file; you can view it using Adobe Acrobat).

Centre for Corporate Law and Securities Regulation Conference
3 November 2000

A conference on "The Future of Corporate Regulation: Hughes & Wakim and the Referral of Powers" has been organised by the University of Melbourne's Centre for Corporate Law and Securities Regulation.

For more see the conference papers.

Further delays

We still don't know when FSR will become law, as the delays continue. Doubts over the validity of the Corporations Law are a major problem. To overcome these doubts, each state has agreed in principle to refer power over companies and securities to the Commonwealth. It was expected this would be done by December 2000, but Western Australia in particular has said it still has a number of concerns. There won't be any progress with FSR until this problem is fixed.

FSR changes
6 October 2000

The Minister for Financial Services and Regulation, Joe Hockey, announced changes to FSR in a speech on 6 October 2000.

For more see our 2006 news archive, 2005 news archive, 2004 news archive, 2003 news archive and 2002 news archive.