Assistant Treasurer Arthur Sinodinos told the Senate Standing Committee on Economics today that Future of Financial Advice (FoFA) proposed amendments could come into effect "earlier than May."
The senator was asked during the Australian Securities and Investments Commission (ASIC) appearance to the Senate Standing Committee on Economics whether the government would pass the FoFA amendments through regulation or via legislation.
"Where it is legal, we will do it through regulation, and then we'll take it through legislation in the Parliament in due course, which will or will not pass," Sinodinos said.
He added that the amendments passed through regulation "will come into place when the government signs them," which could be "earlier than May."
During the session, the Committee also questioned ASIC's "facilitative approach" to FoFA and asked whether it could represent a threat to consumers.
"There has been no change in the law yet and at the moment you are following government policy, instead of the law," independent senator Nick Xenophon noted.
ASIC "will adopt a measured approach where inadvertent breaches arise or systems changes are underway, provided industry participants are making reasonable efforts to comply," the regulator said in a statement before July 1, 2013.
ASIC deputy chairman Peter Kell told the Committee that the regulator will take a "facilitative approach" until July 1, 2014.
"It has proved to be a very effective approach and it is not an unusual one, we took the same approach during the credit reform," Kell said.
He added that "most of the industry has adapted to the regulation and there shouldn't be a need for more substantial investment form the businesses side."Author: Laura MillanSource: Financial Standard