Retail investors to boost corporate bond market
The Government will soon create a cheaper and easier way for retail investors to enter the local corporate bond market, by introducing new legislation to reform the sector.
Finance minister Senator Penny Wong is expected to release draft legislation designed to cut red tape and make it easier for local firms to issue bonds to Australians, rather than raising debt overseas.
Senator Wong told Fairfax media the changes would also allow for $1.4 trillion in superannuation savings to be directed towards Australian companies.
Corporations, however, would have to provide new, simpler prospectuses for retail investors.
The changes come after a period of neglect of the local market for corporate bonds, due to high costs and administrative burdens for retail investors.
Fairfax media reported the draft legislation is to be released next week.
"These reforms are an important part of promoting Australia as a leading financial services hub and securing our reputation as one of the most attractive investment destinations in the world," Senator Wong told the Australian Financial Review.
Recommended for you
Greater consistency across the ASIC adviser exam has helped boost the number of first-time candidates this year with many opting to sit before undertaking a Professional Year.
Financial advice practice Eureka Whittaker Macnaught is in the process of acquiring three firms to boost its annual revenue to $25 million.
AMP has partnered with Dimensional Fund Advisors and SouthPeak IM to launch a suite of investment solutions aimed at expanding retail access to traditionally institutional funds.
The Financial Advice Association Australia has appealed to licensees to urgently update their FAR records as hundreds of advisers are set to depart by the end of the year.
