Richard Colbeck (Tasmania, Liberal Party, Parliamentary Secretary to the Minister for Finance and Administration) Share this | Hansard source

I thank the honourable senators for their contributions to the debate. The measures contained in the Financial Sector Legislation Amendment (Restructures) Bill 2007 facilitate financial groups in Australia to adopt a non-operating holding company as their ultimate holding company. This bill provides greater flexibility for financial groups in choosing a structure to better manage their risk exposures and comply with prudential requirements. The bill will also provide financial groups with the opportunity to improve their business efficiency and international competitiveness.

As a result, the bill further enhances prudential regulation in the financial sector to the benefit of both consumers and business. Any authorised deposit-taking institution, general insurer or life insurance company will be able to apply to the minister for approval to restructure a group headed by one of these prudentially regulated entities. The bill will provide the minister with the power to approve and grant relief from specific statutory restrictions in the Corporations Act 2001, which currently impede the adoption of a non-operating holding company structure. Any relief allowed by the bill will be limited to nominated specific provisions and does not in any way relieve an entity from meeting its general obligations under the Corporations Act or any other relevant legislation. The bill also makes consequential amendments to the income tax law to remove tax impediments that would otherwise discourage restructuring. I again thank the honourable senators for their contributions and I commend the bill to the Senate.

Question agreed to.

Bill read a second time.