March 11 marked the beginning of a new era in the Australian financial services industry. The Financial Services Reform Act came into effect, changing forever intermediaries’ role in the insurance process. With two years to secure an AFS licence, brokers see new opportunities opening up.

In September the Federal Government gave ASIC sweeping new powers in a bid to lift the bar on financial reporting. Treasurer Peter Costello unveiled 41 specific recommendations on improving corporate governance and disclosure requirements. Part of the Government’s CLERP 9 (Corporate Law Economic Reform Program) agenda, the recommendations included one to increase fines for breaches of the ASX’s continuous-disclosure rules from $200,000 to $1 million. Legislation is expected early next year.