Senate

Treasury Laws Amendment (Design and Distribution Obligations and Product Intervention Powers) Bill 2019

Revised Explanatory Memorandum

(Circulated by authority of the Treasurer, the Hon Josh Frydenberg MP)
This memorandum takes account of amendments made by the House of Representatives.

General outline and financial impact

Design and distribution obligations

Schedule 1 to this Bill amends the Corporations Act to introduce design and distribution obligations in relation to financial products.

Date of effect: Two years after the Bill receives the Royal Assent

Proposal announced: The Government announced these obligations as part of its response to the Financial System Inquiry.

Financial impact: Nil.

Human rights implications: The Schedule does not raise any human rights issues. See Statement of Compatibility with Human Rights - Chapter 4.

Product intervention power

Schedule 2 to this Bill amends the Corporations Act and the Credit Act to introduce a product intervention power for ASIC to prevent or respond to significant consumer detriment.

Date of effect: The day after the Bill receives the Royal Assent

Proposal announced: The Government announced the product intervention power as part of its response to the Financial System Inquiry.

Financial impact: Nil.

Human rights implications: The Schedule does not raise any human rights issues. See Statement of Compatibility with Human Rights - Chapter 4.


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