Legislation to encourage the development of a retail corporate bond market would be unlikely to significantly increase the depth and liquidity of the domestic Australian market, according to the Association of Superannuation Funds of Australia (ASFA).
The industry association welcomed the Government's amendments to the Corporations Act, which are aimed at improving the trading of retail corporate bonds in Australia.
The reforms would streamline the corporate bond investments process with only a marginal impact on the depth and liquidity of the domestic market, according to ASFA
As the wholesale market was a conduit for super funds, and the additional retail issuance to Australian investors would be marginal compared to the overall size of the wholesale markets, the reforms were unlikely to affect super funds, ASFA said.
Additionally, it welcomed the Government's intention to define the terms ‘financial planner' and ‘financial adviser' as supporting the Future of Financial Advice reforms in empowering consumers to identify "genuine providers of financial product advice".
