Financial services groups across the industry need to be looking closely at the Financial Services Reform Bill (FSRB) to establish how it will impact their businesses.
This was one of the key messages coming from the first of three Sydney Australian Investments and Securities Institute’s (ASIC) seminars on the FSRB presented to a mix of financial services professionals yesterday.
ASIC deputy chair Jillian Segal reinforced the industry watchdog’s role of assisting with the issues in the draft bill and with ASIC policy proposal papers (PPP). Segal also emphasised the role of individual industry professionals.
“ASIC’s aim is to facilitate the transition and provide assistance. We need your input and practical feedback. If we get that, we believe we will work harmoniously,” she says.
While the proposed legislation aims for a single licensing regime, ASIC FSR licensing project head Pauline Vamos touched on the definition of advice and different licences that will be available.
“The aim [of the FSRB] is a single licensing regime but there will be different licences because there are different services and products and different history and clients,” she says.
Both Vamos and Segal also pushed the message that work on policy making needs to be done now to ensure a smooth transition, even though the transition cutoff is scheduled for two years from the time the bill is passed.
They also stressed that submitting the licence application should not be left to the last stages of the FSRB implementation process.
“Don’t think this is some time off, and do not leave it for two years. Now is the time to look at the PPPs and what steps to take in order for the transition,” Segal says.
Although ASIC does not expect to see a large number of groups putting in licence applications in the first few months, Segal says those who do have more opportunity for receiving greater assistance.
“You are more likely to have more assistance early on, when ASIC will not be inundated with numbers,” Segal says.
