The Financial Services Reform Bill (FSRB) is alive and kicking despite being held up over an impasse between the Federal and State governments.
KPMG associate director Peter Hutley told the FPA Conference that the reform bill, formerly known as CLERP 6, has only been delayed, despite Financial Services Minister Joe Hockey’s assertion that the delay was “indefinite”.
The former chief of the Investment Funds Association (IFA) described the actions of the Financial Services Minister as a “dummy spit” caused by the Federal Government’s frustration over the impasse with the states.
“It doesn’t mean the reform Bill is dead but it means it is being held hostage by the political process,” Hutley said.
“We have a minister who promotes Australia as a global financial centre, yet our corporations law has been found wanting.”
Hutley says that once pressure starts to mount on both the Federal and State Governments, a compromise settlement will be reached. And he says there are a number of business groups applying that pressure right now.
“They can’t allow this to happen,” he says. “There are a number of business voices telling them to get their act together.”
Hutley says the Bill could still be enacted by July 1 next year, but there may less time for the industry to digest the details of the legislation. He says a similar situation arose when the SIS legislation was introduced to parliament and then enacted three days later.
Hutley says that if the impasse between the State and Federal Government had never happened, the Bill would have been introduced to parliament last week, on the last day it sat for the year. He says it may still meet the July 1 deadline and include the two year transition period.
