Explanatory StatementIssued by the Parliamentary Secretary to the Treasurer
Subject: Retirement Savings Accounts Act 1997
Section 200 of the Retirement Savings Accounts Act 1997 (the RSA Act) provides that the GovernorGeneral may make regulations prescribing matters required or permitted to be prescribed, necessary or convenient to be prescribed for carrying out or giving effect to the Act, including certain specified purposes.
The purpose of the Regulations is to amend the Retirement Savings Account Regulations 1997 to support the reforms to the regulation of the financial services industry which are included in the Financial Services Reform Act 2001 and associated legislation. They are needed as a consequence or moving requirements for disclosure about retirement savings accounts from the Act into the Corporations Act 2001 (the Corporations Act) and Corporations Regulations 2001.
The Financial Services Reform Act 2001 amends the Corporations Act and the Australian Securities and Investments Commission Act 2001, and will provide:
- a single licensing regime for financial sales, advice and dealings in relation to financial products;
- consistent and comparable financial product disclosure; and
- a single authorisation procedure for financial exchanges and clearing and settlement facilities.
In broad terms, the amendments:
- delete regulations the subject matter of which is to be covered by the Corporations Act and Corporations Regulations following the commencement of the Financial Services Reform Act 2001; and
- substitute appropriate cross-references to the relevant provisions in the Corporations Act.
A more detailed description of what the amendments to the Retirement Savings Accounts Regulations do is included in the attachment.
The regulations commence at the same time as Item 1 of Schedule 1 of the Financial Services Reform Act 2001 commences. This Item has been proclaimed to commence on 11 March 2002.
Disclosure requirements under Part 2 of the RSA Regulations have been replaced by regulations made under the operation of Part 7.9 of the Corporations Act. This includes 'point of sale' disclosure and periodic reporting requirements.
A. Deletion of particular Retirement Savings Accounts Regulations
The regulations delete Divisions 2.1 - 2.5, 2.7 - 2.8, and Regulations 2.06 - 2.08 and 2.10.
B. Correction of cross-references and other consequential amendments
Consequential amendments are also made to
- the definition of 'reporting period' in Regulation 1.03;
- the reference to where to find the information prescribed for the purpose of paragraph 52(2)(a) of the RSA Act;
- the definition of 'RSA holder reporting period';
and the regulations make certain other minor consequential amendments (to paragraph 3.09(b), and Regulations 4.32, 4.33 and 6.12).