Corps Act split would separate companies from consumers: ALRC President professionalplanner.com.au - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from professionalplanner.com.au Daily Mail and Mail on Sunday newspapers.
Advisers could be in line for more principles-based regulation according to ALRC president Sarah Derrington, who agreed with a host of global regulatory experts that a balance between principles and prescription is required.
Licensee obligations ‘obscured’ by red tape
Licensee obligations ‘obscured’ by red tape
The government body charged with reviewing the financial services legal system has pointed to “skyrocketing” complexity in the
Corporations Act since it was first introduced, revealing the act is so long it now accounts for 4 per cent of all federal laws in Australia.
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In an industry webinar on Monday, Australian Law Reform Commission legal officer Nicholas Simoes da Silva said in the two decades since the
Corporations Act had been introduced, it had increased in size by around 60 per cent and been amended more than 100 times.
ALRC Commissioner and federal court judge Justice Hon. John Middleton.
Australian Law Reform Commissioner and federal court judge Hon. Justice John Middleton has confirmed the ALRC will look at pulling chapter seven of the Corporations Act – which deals with financial products and services – out of the Act altogether as part of the group’s ongoing review into financial services regulation.
After an ALRC webinar presentation that outlined some of the complexities within the Corporations Act, Middleton was asked by ALRC president and fellow federal judge Justice Hon. Sarah Dennington whether chapter seven might be better “as a standalone statute”.
“It’s certainly something that’s on the table for consideration,” Middleton said, before adding that doing so “wasn’t an automatic cure, necessarily,” to the complexity issues that plague the Act.
The three-page script is described as a "light-hearted dialogue" between the concerned parents of the Corporations Act, who chastise the adolescent document for getting fat, hiding legislative documents under the bed and using obscure definitions like "simple corporate bonds depository nominee".