The Government has released for public consultation a revised exposure draft of the Treasury Laws Amendment (Design and Distribution Obligations and Product Intervention Powers) Bill 2018 (‘the Bill’) and explanatory materials.
The revised exposure draft of the Bill has been developed in response to the feedback received during the Government’s previous round of consultation.
These measures implement the Government’s response to the Financial System Inquiry (FSI), Improving Australia’s Financial System 2015, whereby the Government accepted the FSI’s recommendations to introduce:
- design and distribution obligations for financial products to ensure that products are targeted at the right people (FSI recommendation 21); and
- a product intervention power for the Australian Securities and Investments Commission when there is a risk of significant consumer detriment (FSI recommendation 22).
The Government previously released exposure draft legislation for consultation on 21 December 2017. Submissions for the draft legislation closed on 9 February 2018.
The attached Information Note summarises the key changes from the previous version of the Bill.