New market – and credit – laws to reach Federal Parliament today

The Federal government is  to tighten supervision of Australia’s financial markets and take over present State responsibilities for consumer credit.

The Federal Financial Services Minister Chris Bowen announced both moves.

Mr Bowen said the Federal government would introduce legislation into Parliament today, which would reform the way Australia’s financial markets are supervised.

“In doing so, the bill will enhance the integrigty of Australia’s financial market and contribute to the goal of making Australia a financial hub,” he said.

Under the government’s plan, the Australian Securities and Investment Commission will be given clear responsibility for the supervision of these markets.

Mr Bowen said this bill would contain three key provisions.

• It would remove the obligation Australian market licencees presently have to supervise their markets
• That obligation would go to ASIC
• And ASIC would be given extra powers not only to make new rules, but also to enforce them.

Mr Bowen said he would also ask parliament to approve the transfer of State consumer credit powers to the Commonwealth.

“Passage of the National Consumer Credit Protection Amendment bill is the final step for the Commonwealth in creating a single, standard, national regime for the regulation of consumer credit,” Mr Bowen said.

He said this “landmark” change is being achieved in a spirit of co-operation between the Federal government and the States and Territories.