The Senate Economics Legislation Committee has released its report on the Financial Sector Reform package of 4 bills comprising:
- Financial Accountability Regime Bill 2022;
- Financial Sector Reform Bill 2022;
- Financial Services Compensation Scheme of Last Resort Levy Bill 2022; and
- Financial Services Compensation Scheme of Last Resort Levy (Collection) Bill 2022.
The Bills were passed by the House of Representatives on 28 September 2022 and are scheduled to be considered by the Senate on 27 October 2022. Background.
The package of bills finalises a number of remaining recommendations from the Financial Services Royal Commission and the 2016 Review of Small Amount Credit Contract Laws including:
- the establishment of a Financial Accountability Regime (FAR) to replace and extend the Banking Executive Accountability Regime (BEAR) from banking to the insurance and superannuation sectors as well;
- the establishment of a Compensation Scheme of Last Resort; and
- the amendment of the National Consumer Protection Act 2009 to strengthen the consumer protection framework for vulnerable consumers of small amount credit contracts (SACCs) and consumer leases.
While the committee recommends the bills be passed, the Coalition Senators and the Australian Greens made additional comments about their concerns.
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Author: David Jacobson
Principal, Bright Corporate Law
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About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.
