Bill Shorten (Maribyrnong, Australian Labor Party, Assistant Treasurer) Share this | Hansard source

in reply—I thank honourable members for their contribution to the debate on this bill. The purpose of the Corporations and Other Legislation Amendment (Trustee Companies and Other Measures) Bill 2011 is to improve the operation of chapter 5D of the Corporations Act 2001. As mentioned in my second reading speech, the bill provides for voluntary transfers of trustee business between entities. Prior to the commencement of chapter 5D, many corporate groups operated multiple subsidiaries in order to comply with former state and territory regimes. This bill, along with the appropriate state and territory legislation, will provide industry with a process for consolidating the business of these subsidiaries into one Commonwealth licensed entity.

The bill also allows for compulsory transfers of trustee company business from a failing licensed trustee company to a state or territory public trustee. Further, the bill provides for a formal procedure under which the prospective licensee applies to the government to be listed as a licensed trustee corporation, and prohibits an entity from holding itself out as a licensed trustee company unless it holds an AFSL with a trustee company authorisation.

Finally, the bill will also amend the Payment Systems (Regulation) Act 1998 to protect participants in the automatic teller machine system from prosecution under the Competition and Consumer Act 2010 and allow them to continue to comply with the Reserve Bank of Australia’s ATM reform. In summary, this bill is the outcome of ongoing consultation with stakeholders such as the Trustee Corporations Association of Australia and state and territory governments with a view to ensuring that the policy objectives and outcomes are being met, and continuing to review and improve the regulatory regime underlying chapter 5D of the Corporations Act 2001. I commend this bill to the House.

Question agreed to.

Bill read a second time.

Ordered that this bill be reported to the House without amendment.

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