Financial Services and Regulation Minister Joe Hockey has capitulated to pressure from the financial services sector and put back the implementation date for the Financial Services Reform Act to March 11. The concession to move back from October 1 was reached after Mr Hockey met industry leaders and association executives last week.

The delay is a significant backdown by Mr Hockey, who was adamant to the end that the Act would come into effect on October 1. The decision was greeted with relief by most sectors of the industry.

NIBA Chief Executive Noel Pettersen said his association supports the five-month delay because it “gives the industry a bit of a buffer” while it absorbs the impact of the accompanying regulations.

Some industry groups will also be using the time available to see what further concessions might be squeezed from the politicians in the lead-up to an election. Leading the lobbying charge will be the accountant groups, which feel concessions to lawyers have given the law firms an unfair competitive advantage.

Amendments to the FSRB rushed to the Senate now exclude call centre operators from the new law’s disclosure requirements. The cooling-off conditions on some short-term products were also amended – a move that was opposed by the Labor Party.