Legislative changes impact licensee use of client monies
Among the legislative changes to be introduced to the Parliament before it rose for the Christmas break were amendments aimed at offering greater protections to retail investors.
The legislation, introduced by the Minister for Revenue and Financial Services, Kelly O'Dwyer closes off a loophole with respect to the use of retail client monies by licensees.
The legislation, the Treasury Laws Amendment Bill 2016, was described by O'Dwyer as being one of a suite of measures the Government was undertaking to ensure that retail consumers of financial products and services were protected.
"These reforms will ensure that retail clients are better protected when a licensee such as BBY becomes insolvent, and stand as further evidence of the Government's ongoing commitment to focus on implementing measures that make a real difference to consumers," she said.
The minister said the bill would close a critical loophole in the protection of retail consumers, ensuring that Australian financial services firms could no longer use their retail clients' money for their own — or other clients' — purposes.
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