Financial services review considers Aussie regime

The Government has launched a review of non-bank financial products and service providers that will consider links to Australia's regulatory regime.

The review will assess regulation governing superannuation, insurance, managed fund products and securities offerings.

It will investigate the regulation of insurance companies, credit unions and friendly societies, building societies, finance companies and provident societies.

It will be led by the Ministry of Economic Development and aims to send policy proposals to Cabinet by late 2006 with any legislative changes planned for 2008.

"The aim of the review is to improve the efficiency of financial markets by ensuring that there is a consistent and effective framework for the regulation of products and providers," Commerce Minister Pete Hodgson said yesterday.

The review will look at any appropriate co-ordination opportunities with Australia's regulatory regime, Hodgson added.

MED said the review would largely be a stocktake of current regulation and would evaluate whether improvements were needed. It will be co-ordinated with work done by the Government's Financial Intermediaries Taskforce, the Law Commission's report on life insurance and the ongoing review of the 1978 Securities Act.

Bringing these issues together would remove inconsistencies that could lead to unintended regulatory distortions that affect the competitive position of financial products.