01.National Guarantee Fund Reforms May be on the Horizon
What's the good news?
CHOICE welcomes news that the Council of Financial Regulators has advised the Prime Minister in a recent letter to boost the transparency and accountability of the National Guarantee Fund (NGF), which provides protections to investors on Australia’s stock exchange.
It has recommended that a board of directors appointed directly by the Minister would provide greater independence to the organisation, which will in turn increase confidence. The letter is a result of a review conducted last year on financial regulation, which included submissions from several organisations including CHOICE.
Still work ahead
However, the people’s watchdog has called in a follow-up submission for the new board to include as many appointees from consumer protection backgrounds as from industry. This will further increase broader confidence in the organisation as well better equip the NGF to spearhead future reforms. CHOICE argues that these reforms must include a review of the organisations scope and the establishment of the NGF as an independent company, which could then provide whole of market coverage and protection for consumers.
Read CHOICE’S full submission regarding the National Guarantee Fund.