The Corporations Point-in-Time Service has been updated to include the Treasury Laws Amendment (Banking Measures No. 1) Act 2018 (Cth) (Act 9 of 2018), the Financial Sector Legislation Amendment (Crisis Resolution Powers and Other Measures) Act 2018 (Cth) (Act 10 of 2018) and the Treasury Laws Amendment (Putting Consumers First - Establishment of the Australian Financial Complaints Authority) Act 2018 (Cth) (Act 13 of 2018).
Schedules 1 and 2 to the Act will promote financial stability through strengthening
APRAs ability to respond to developments in non-ADI lending that pose a risk to financial
Schedule 3 to the Act will promote a reduction of barriers to new entrants to the banking sector and provide a more level playing field amongst ADIs. Further, the changes will align community expectations in respect of the use of the term ‘bank’ with the fact that ADIs are prudentially supervised by APRA and deposits are covered by the FCS guarantee.
Schedule 4 to the Act modernises the Banking Act 1959 (Banking Act) by inserting an objects provision. Similar industry Acts, the Life Insurance Act 1995 and the Insurance Act 1973 contain objects provisions which guide the reader on the main purposes of the Act.
Schedule 5 to the Act amends the Credit Act to introduce a number of reforms to improve consumer outcomes under credit card contracts.
The Act strengthens the powers of the Australian Prudential Regulation Authority (APRA) to facilitate the orderly resolution of an authorised deposit-taking institution (ADI) or insurer so as to protect the interests of depositors and policyholders, and to protect the stability of the financial system. The Act also ensures that APRA has powers to set appropriate prudential requirements and take action in relation to resolution planning so that ADIs and insurers are better prepared for resolution.
This Act will amend the Corporations Act 2001 and other Commonwealth Acts to introduce a new external dispute resolution (EDR)
framework and an enhanced internal dispute resolution (IDR) framework for the financial
The new EDR framework will ensure that consumers have easy access to a single EDR scheme, known as the Australian Financial Complaints Authority (AFCA), which will resolve disputes about products and services provided by financial firms. The AFCA scheme will replace the Superannuation Complaints Tribunal (SCT) and the existing EDR schemes approved by the Australian Securities and Investments Commission (ASIC).
The enhanced IDR framework will require financial firms to report their IDR activities in accordance with ASIC requirements and allow ASIC to publish information it receives under new reporting requirements. This will allow ASIC to improve transparency about the performance of financial firms in relation to their IDR activities.
These amendments have been updated in the Point-in-Time Corporations Service current to 27 March 2018. (NB: subscription required).
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