Draft legislation aimed at reducing the complexity of financial services laws through some simple changes has been released for consultation as an inquiry into a more significant overhaul continues. 

The Australian Law Reform Commission (ALRC) inquiry has made recommendations for straightforward changes that don’t raise major policy issues and which have broad support while it continues to consult on other proposals. 

The process aims to promote more “user friendly” legislation and regulation, with the current framework compared to a poorly built house. 

The draft legislation is the second to address some of the recommendations and Treasury says it will make corporations and financial services laws “more adaptive, efficient and navigable within existing policy settings”. 

“Simplifying these laws will benefit industry and consumers and is critical to maintaining a strong financial sector,” Treasury says. 

The changes create a single glossary of defined terms in Section 9 of the Corporations Act and repeal definitions no longer used. They address unclear or incorrect provisions, simplify those that are unnecessarily complex and “unfreeze” the Acts Interpretation Act so the most current version applies. 

The ALRC will release its third interim report by August 25 next year and will submit a consolidated final report by November 30.  

Consultation on the draft legislation closes on January 15. More details are available here.