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CLERP 6: process needs a helping hand.



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Media Release

Stephen Conroy

Shadow Minister for Financial Services and Regulation

Labor Senator for Victoria

 

 

CLERP 6: PROCESS NEEDS A HELPING HAND

 

In a speech today to the Australian Shareholders’ Association, Senator Stephen Conroy, Shadow Minister for Financial Services and Regulation, announced that he will move to have the Parliamentary Joint Committee on Corporations and Securities to look into matters arising from the consultation paper, Implementing CLERP 6: Financial Products, Service Providers and Markets - An Integrated Framework .

 

“While there is general support for the CLERP 6 objectives, there are a number of key proposals that are subject to passionate debate among constituencies in the financial sector”, Senator Conroy said.

 

“Issues of contention include the introduction of the so-called “know your client” rule for all kinds of financial services, the proposal to allow retail investors to opt up as wholesale investors, and licensing restrictions on financial service providers.”

 

“The lack of consensus has now acted as a roadblock in the Government’s path of reform. The Government has now effectively admitted that there would be a delay in drafting of the Bill,” Senator Conroy said.

 

“Well, Labor would like to help. We can expedite the process by now calling for a Parliamentary Committee to look into matters arising from the CLERP 6 consultation paper, rather than wait for the introduction of the Bill, which may not be forthcoming in the near future.”

 

“Mr Hockey knows how the process works. An inquiry now, in-line with the drafting of the Bill, will speed up the process.

 

“This will allow the public to openly assess the concerns of various constituencies and to gain an immediate forum through which stakeholders can contribute to the preparation of the Bill.

 

“ALP colleagues in the Committee, comprising Mr Kevin Rudd MP, Mr Bob Sercombe MP and Senator Barney Cooney, have expressed support for the inquiry.”

 

“I have drafted terms of reference for the inquiry and will forward this to the Committee,” Senator Conroy said.

 

4 August 1999

 

FOR FURTHER COMMENT CONTACT:

Stephen Conroy 0418 383 9650 or Arnold Jorge (03) 9650 1188

 

Copy of the speech can be obtained on request.

 

 

SUGGESTED TERMS OF REFERENCE

FOR PROPOSED INQUIRY BY THE JOINT COMMITTEE ON

CORPORATIONS AND SECURITIES ON MATTERS ARISING FROM THE

CLERP 6 CONSULTATION PAPER

 

The Joint Committee on Corporations and Securities will be charged to undertake an inquiry into all matters arising from the consultation paper, Implementing CLERP 6: Financial Products, Service Providers and Markets - An Integrated Framework.

 

The Committee will specifically undertake the following but not to the exclusion of other concerns arising from the CLERP 6 consultation paper:

 

(i) Investigate the potential for r egulations that distinguishes between financial services and products of different risks;

 

(ii) Investigate the restrictions on licensing and the ability of licensees to act as and use the term independent;

 

(iii) Assess the impact of allowing retail clien ts to opt up as wholesale clients;

 

(iv) Determine the full extent to which the "know your client" rule would be practically applicable to all financial services;

 

(v) Consider transition arrangements that would ensure minimal disruption to the activities of the financial services providers and minimal confusion to customers;

 

(vi) Assess the consequences of opening up to competition the stock markets, and clearing and settlement facilities;

 

(vii) Determine the appropriate level of regulatory agency power and flexibility;

 

(viii) Consider the appropriate criteria for liability;

 

  1. Determine the best approach to encouraging industry codes of conduct; and

 

(x) Consider, as appropriate, other issues or concerns, which may be brought to the attention of the Comm ittee as relevant to CLERP 6.

 

 

jy  1999-08-09  14:33