Financial product design & intervention powers – updated draft legislation released

Written by Philip Hopley

The federal government has just released for public consultation a second exposure draft of the legislation that will introduce financial product design and distribution obligations into the Corporations Act and give ASIC new enforcement powers, which includes the issuing of stop orders.

Having considered the submissions provided on the first draft of exposure legislation that was published last year, the government’s updated draft legislation contains a number of qualifications, clarifications and enhancements to the proposed product design and distribution regime. This includes extending the transitional period from one to two years.

For those wanting a snapshot of what has changed there is a helpful Information Note. A more detailed comparison between the current and proposed laws can be found at page 7 of the Explanatory Memorandum. More committed readers can access the full updated draft bill here.

This consultation is open for comments until Wednesday, 15 August 2018.  Details of how to do so are here.

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Filed under ASIC Guidance, Financial Products & Advice, Financial Services Regulation, Life Insurance, Regulation & Remediation, Superannuation

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