The Federal Government has passed a raft of measures it says will ease industry concerns over the complexity of reporting standards and red tape in financial services.

Under pressure from Labor and industry to slash paperwork and complex reporting arrangements, the Government has passed the laws in time for the winter recess, foreshadowing further refinements, including downsized disclosure guides.

The Corporations Legislation Amendment (Simpler Regulatory System) Bill 2007 covers a range of regulatory areas including financial services, financial reporting, takeovers, auditor independence, corporate governance and fund raising.

In particular, the bill addresses internet use in financial reporting, reporting thresholds for proprietary companies, reporting requirements for executive remuneration and fund-raising requirements for employee share schemes.

Changes to financial reporting and electronic distribution of annual reports will take effect for the 2006/07 financial reporting year.

Parliamentary Secretary to the Treasurer Chris Pearce says supporting regulations streamlining financial advice will be issued in the coming weeks. Disclosure documents will also be shortened to make them more comprehendible.

Labor has hammered the Federal Government on the length of financial services guides and has pledged to reduce the weighty tomes to just three pages if it wins office.

The latest reforms come just months after Mr Pearce announced changes to professional indemnity insurance in the financial services sector.

“With the co-operation of stakeholder groups, we have made Australia’s corporate and financial services regulatory framework simpler and more efficient,” he said.

“The Government looks forward to delivering further major reform packages in the future that will deliver benefits to consumers and business for the long-term benefit of all Australians.”