In October 2015, the Government announced that it would develop legislation to better protect client money, as part of its response to the Financial System Inquiry.
In December 2015, the Government released a policy paper that explains the proposed changes to the regulatory framework, and invited interested parties to comment (submissions closed on 5 February 2016).
The Government is now pleased to release draft legislation and regulation to reform the Australian client money regime, and the associated explanatory materials. The Corporations Amendment (Client Money) Bill 2016 and Corporations Amendment (Client Money) Regulation 2016 give effect to the proposals made in the policy paper, and deliver on the Government's commitment to better protect retail client money - while continuing to facilitate the efficient operation of wholesale derivatives markets.
The changes better align the Australian client money regime with international best practice and community expectations of consumer protection.
The Government will take all feedback on client money reform into account when finalising the legislation and regulation (including comments already made on the policy paper).