Legislation to streamline prudential regulation was introduced into parliament in the hopes of cutting red tape for the financial services sector.
Federal Minister for Revenue and Assistant Treasurer Peter Dutton stated the Financial Sector Legislation Amendment (Simplifying Regulation and Review) Bill 2007 will contain a number of measures that are in keeping with the “Rethinking Regulation” report from the Taskforce on Reducing Regulation Burdens on Business.
“In particular, the changes to breach reporting will make processes simpler, and in doing so will reduce costs, duplication and effort for the financial services sector”, said Dutton.
Besides the streamlining of reporting breaches, the bill will include measures to simplify processes for appointing actuaries and auditors, provide greater flexibility through exemption powers, enforceable undertakings and discretion under prudential standards, and simplify the Life Insurance Act 1995.
In addition, enhanced cooperation between the various professional bodies associated with the financial services industry has been further encouraged.
The bill also includes an amendment to Part 23 of the Superannuation Industry (Supervision) Act 1993, which will provide financial assistance to funds that have suffered loss as a result of fraud or theft.
