The Terms of Reference for the Inquiry require the Australian Law Reform Commission (ALRC) to survey the gamut of corporations and financial services legislation and make recommendations for simplification.
CA ANZ wholeheartedly supports this Inquiry and its importance to ensure the law is fit for purpose for industry and consumers. The Inquiry recognises the dynamic nature of the financial services sector and its significant contribution to the Australian economy.
Legislative simplification should reduce the amount of time and money this overarching legislative framework places on industry and, if simplification is achieved, many more Australians may be able to access high quality financial advice at an affordable cost.
Our submission provides responses to the proposals raised and questions asked in first interim report, Report A. Report A looks at the terms and definitions used across financial services legislation.
Broadly we support the proposals as they seek to simplify many of the basics by consistent use of terms across legislative instruments and applying definitions that reflect the everyday use of these terms. We do not support diluting the term ‘responsible person’ to ‘preparer’. We consider the term ‘responsible person’ gives consumers with confidence that they can rely on the information provided to make an informed choice.
Subsequent interim reports are expected to be released later this year with the final report provided in early 2023.