CORPORATIONS (FINANCIAL SERVICES REFORM AMENDMENTS) BILL 2002 Second Reading Speech

Northern Territory Second Reading Speeches

CORPORATIONS (FINANCIAL SERVICES REFORM AMENDMENTS) BILL 2002

(This an uncorrected proof of the daily report. It is made available under the condition that it is recognised as such.)

Madam Speaker, I move that the bill be now read as a second time.

The main purpose of this bill is to make amendments to the Northern Territory acts and regulations made necessary because of the enactment by the Commonwealth parliament of the Financial Services Reform Act 2001 and other associated legislation.

The Commonwealth’s Financial Services Reform Act 2001 and other associated legislation reform national laws governing the provision of various financial products. These products include financial advice services related to shares, debentures, derivatives, managed investment products, certain insurance products, superannuation products, and retirement savings products. The outcome is a new licensing scheme dealing with persons who provide such services. This scheme will commence operation on the 11 March 2002. The relevant provisions are mostly contained in Chapter 7 of the Corporations Act 2001. The main relevance of these changes to Northern Territory legislation is that there is a need to ensure that the Northern Territory legislation uses terminology and has cross-references that match the provisions in the Corporations Act 2001. This bill aims to ensure that this occurs.

I will provide two examples of the kind of changes. The first example is that stock exchanges are now, for the purpose of the Corporation Acts 2001, covered by the term ‘financial market’. The second is that the insurance agents will now be regulated under the Corporations Act 2001, rather than by the Insurance Agents and Brokers Act 1984, which act has been repealed. The Northern Territory consequential amendments will commence operation after commencement of the Commonwealth legislation. In this regard, the Northern Territory’s in the same position as all of the states. Consequently, there will be a period of time when there will not be an accurate match between the Northern Territory and Commonwealth laws.

To a great extent, section 15(2) of the Interpretation Act operates so as to limit the possibility of legal problems arising from this mismatch. Nonetheless, the bill will provide that the new provisions are deemed to have operated from the time of commencement of the Commonwealth legislation. I commend the bill to honourable members.

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