Tuesday, 2 April 2019
Treasury Laws Amendment (Design and Distribution Obligations and Product Intervention Powers) Bill 2018; Second Reading
I thank those who've contributed to the debate. The government is committed to implementing its response to the financial services royal commission. This bill is an important part of our commitment. It will ensure that financial products are sold to the right consumers and that ASIC is empowered to intervene in order to prevent consumer harm.
The bill introduces a new design and distribution obligation for financial products. These obligations will require product issuers to determine an appropriate target market for their products and distributors to take reasonable steps to ensure that those products are distributed accordingly.
The bill also provides ASIC with a new product intervention power that will allow the corporate watchdog to make interventions in relation to a financial product where it identifies a risk of significant consumer detriment. These crucial reforms build on the substantial steps already undertaken by the government to protect Australian consumers. They deliver on our commitment to ensure that consumers are treated fairly by our financial system. I commend the bill to the House.
Question agreed to.
Bill read a second time.