Explanatory Memorandum
(Circulated by the authority of the Deputy Prime Minister and Treasurer, the Hon Wayne Swan MP)General outline and financial impact
OUTLINE
The Commonwealth Government Securities Legislation Amendment (Retail Trading) Bill 2012 (the Bill) amends the Commonwealth Inscribed Stock Act 1911 (the CIS Act) to facilitate trading of beneficial interests in Commonwealth Government Securities (CGS) on financial markets in Australia that are accessible to retail investors. The Bill also contains amendments to the Corporations Act 2001 (the Corporations Act) requiring financial advisers to provide a prescribed information statement to retail clients when they give them personal advice about investing in CGS. . Finally, a number of minor amendments are made to the CIS Act to facilitate the Australian Office of Financial Management's (AOFM) daily administrative work and to remove some redundant provisions.
Date of effect: The day after the Act receives the Royal Assent.
Proposal announced: The measure was announced in a media release titled 'A competitive and sustainable banking system' by the Deputy Prime Minister and Treasurer dated 12 December 2010 and included in the 2011 12 Budget.
Financial impact: Total funding of $11.2 million for implementing the measure was provided to the AOFM in the 2011 12 Budget and the costs have been included in the forward estimates as follows:
| 2010-11 | 2011-12 | 2012-13 | 2013-14 | 2014-15 |
| nil | $0.9 million | $3.5 million | $3.4 million | $3.4 million |
Human rights implications: This Bill does not raise any human rights issue. See Statement of Compatibility with Human Rights - Chapter 2, paragraphs 2.3 to 2.6.
Compliance cost impact: This Bill has a minor compliance cost impact on financial advisers due to the requirement to provide the prescribed information statement for retail CGS when giving personal advice. The information statement will be available on a designated website and financial advisers will be able to download and print out the document for provision to their clients.
Summary of regulation impact statement
Coverage of gaseous fuels - Regulation impact on business
Impact:
The Office of Best Practice Regulation has confirmed that the amendments do not require a regulation impact statement because they only have a minor impact on business (Office of Best Practice Regulation reference ID 13950).