Background
Non-bank financial products and providers include insurance, superannuation, collective investment schemes, platforms and portfolio management services, non-bank deposit takers, securities offerings and issuers of equity and debt securities. These products and providers are currently regulated by a myriad of laws, which has led to gaps in coverage, inconsistencies in the regulatory treatment of similar products and unnecessary compliance costs.
To improve regulation of non-bank financial institutions, financial products and financial intermediaries, two separate but related reviews were commenced in 2004 and 2005, being: Review of Financial Intermediaries and Review of Financial Products and Providers (RFPP). Both reviews shared the objectives of: a sound and efficient financial system; investment which encourages growth and innovation; an environment which facilitates wealth accumulation; and confidence in the sector.
The Review of Financial Intermediaries involved the establishment of a Financial Intermediaries Taskforce, which designed a co-regulatory model involving Approved Professional Bodies as the frontline regulators and the Securities Commission as the overarching regulator.
The Review of Financial Products and Providers saw nine discussion documents issued in 2006: Overview of the Review and Registration of Financial Institutions; Review of Securities Offerings; Supervision of Issuers; Collective Investment Schemes; Non-Bank deposit takers; Insurance; Mutuals' Governance; Consumer Dispute Resolution and Redress; Platforms and Portfolio Management Services.
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