Monday, November 25, 2013
CFI "green tape" to be reviewed
The "shibboleth"that crippling regulations will make consumers sufficiently confident about the environmental integrity to pay high prices for abatement offsets will be tested in the enquiry into the Australian financial system, announced by the offices of the Prime Minister and Treasurer. Australian Carbon Credit Units are formally financial instruments and anyone dealing in them (except farmers selling on their own behalf) must have an Australian Financial Services Licence. This requirement brings ACCUs into the purview of the enquiry.
The government aims to, among other things, "reduce the regulatory burden... wherever the benefits to... consumer protection are questionable." The issue is tagged as "Gold-plating the CFI". The Government plans a "root and branch examination of the nation's financial system". It said: "The inquiry will make recommendations to foster an efficient, competitive and flexible financial system, consistent with financial stability, prudence, integrity and fairness. This should result in less costs, lower fees and greater efficiency in the allocation of capital."
See 100 Year Old Deal-killer
Posted by Michael Kiely at 11:58 AM