The Assistant Treasurer and Minister for Financial Services and Superannuation has released for public comment a draft Bill and explanatory material for the Corporations and Other Legislation Amendment (Trustee Companies and Other Measures) Bill 2011 in relation to trustee companies.

The draft Bill amends the trustee company provisions in Chapter 5D of the Corporations Act 2001 to facilitate the national consolidation of the industry through voluntary transfers using an administrative process.

Prior to the commencement of a national regulatory framework for trustee companies on 6 May 2010 and under the former State and Territory (State) based system, many corporate groups operating across State borders operated multiple subsidiaries whose purpose was to hold a trustee company authorisation in a particular jurisdiction. With the advent of national licensing, many corporate groups wish to transfer the business of these subsidiaries to a single Australian financial services licence (AFSL) holder with a trustee company authorisation.

The voluntary transfer scheme will not be limited to intra-group transfers.

The draft Bill is available for public comment until 10 February 2011.