The Federal Government has released 35 proposals relating to corporate and financial services in a bid to further simplify the way the industry is regulated.

Parliamentary Secretary to the Treasurer Chris Pearce, who last week released the Corporate and Financial Services Regulation Review Proposals, says the proposals were the most significant in the corporate and financial services sector since the Corporate Law Economic Reform Program.

In August this year he said reforms arising from the consultation paper will be achieved through the Simpler Regulatory System Bill, due early next year after comments have been received.

Australian Securities and Investments Commission (ASIC) Acting Chairman Jeremy Cooper says the regulator has worked closely with Treasury on the proposals, which, in his opinion, raise several important issues.

“ASIC looks forward to continuing to work closely with government and industry to finalise the proposals that have been put forward and, at the same time, to further progress our Better Regulation initiatives,” he said.

Some of the proposals relate to insurers and brokers – for example, one that in some situations allows financial services providers to provide sales recommendations that aren’t considered to be financial advice.

There is also a proposal to remove the requirement to provide a statement of advice (SOA) when personal advice is provided that doesn’t involve a recommendation of a product, or remuneration.

The paper suggests introducing a threshold for SOA requirements so that full documentation is essential only if the advice given is in relation to an investment amount more than $10,000 (except for superannuation).

Under the proposals, a financial services guide would not have to be provided by a financial services representative at a forum attended by 10 or more retail clients.

The Government has also proposed an amendment to the cross-endorsement arrangements so that licensees are jointly and severally liable for the conduct of their authorised representatives only when the representatives provide financial services in the same sub-class of financial product.

The Government has asked ASIC to review policy statement 146, which relates to training, and any revisions that may arise from the other proposals.

Mr Pearce says he wants a relatively short consultation period, and with that in mind he has given the industry until December 22 for written submissions to Treasury.

There will be opportunity early next year for further talks with Treasury at the bill’s draft stage to deal with issues of technical detail.