Minister for Revenue and Financial Services Kelly O’Dwyer introduced another bill into Parliament yesterday, which is part of the government's response to the Murray Financial System Inquiry.
The Treasury Laws Amendment Bill 2016 was introduced into Parliament and read for a first time yesterday. The bill amends the client money regime and follows extensive consultation earlier this year, according to a statement.
Ms O’Dwyer said the bill will close a critical loophole in the protection of retail consumers, ensuring that Australian financial services firms can no longer use their retail clients’ money for their own – or other clients’ – purposes.
Ms O’Dwyer added the bill is intended “to further protect retail investors and increase consumer confidence in the financial services sector”.
“It is one of a suite of measures the government is undertaking to ensure that retail consumers of financial products and services are protected, in line with community expectations, and to further enhance trust and confidence in the financial system,” Ms O’Dwyer said.
“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.”
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