The ASIC register is being scrapped, Australian citizens are concerned

Due to the different reports surrounding the announcement from Australian Prime Minister Tony Abbott to reinstate the government’s seven-year seizure of inactive bank accounts, and scrapping ASIC, many concerned citizens feel a fact finding investigation is needed.

Sydney, Australia – April 25, 2015 /PressCable/ —

With ongoing efforts to provide the latest information concerning Australian citizens, Business Review has released an article for Australians with inactive bank accounts.

The Australian Government has promised people with inactive bank accounts more time before their money is transferred to the government. The Prime Minister Tony Abbott says he will restore the seven year limit for the seizure of inactive accounts. LABOR argues it will benefit banks, not consumers, by reversing the Gillard government’s policy of seizing money from bank accounts that go untouched for three years.

The Australian Securities and Investments Commission (ASIC) will no longer be required to keep a register of unclaimed monies for the entire seven years, enabling banks to continue to charge fees. Citizens are concerned about the register being scrapped and the Prime Minister’s intentions.

The Australian reports: The Prime Minister announced the government was reinstituting the Howard government’s seven-year trigger for the seizure of inactive bank accounts, saying Labor’s three-year policy amounted to a “smash and grab raid on people’s savings.”

“About 156,000 accounts worth $550 million a year were being effectively confiscated by the government and then of course the government was making people go through months and months of paper work to get its own money back,” Mr Abbott told Sydney radio station 2SM.

ABC.net.au: “The Federal Government says there’s about $700 million sitting in lost bank accounts and life insurance policies in Australia.”

“As part of the overhaul, ASIC’s register of people with dormant accounts will also be scrapped.”

“The Australian Federal Government’s concerns with privacy have also prompted a rethink of tax disclosure laws.”

According to Assistant Treasurer Josh Frydenberg, “The advice to us is that information has been used by unscrupulous players to charge exorbitant charges to people to recover their money which is rightly theirs.” “Also, there has been the advice that there is the chance of identity theft by having that information publicly provided.”

Sky News: “Under the changes, children’s bank accounts and those in foreign currencies will be exempt from the trigger. As well, the Australian Securities and Investments Commission (ASIC) will no longer be required to keep a register of unclaimed monies.”

Assistant treasury spokesman Andrew Leigh called on Mr Abbott to explain why the change is in the public’s interest. “Hundreds of thousands of Australians have money in old bank accounts and lost superannuation. We put these rules in place to stop the value of those accounts being eroded over time by fees,” Dr Leigh said.

“By reverting to the old rules, the government is saying unclaimed monies should be held secretly by banks for long periods being eaten away by fees and charges. The government needs to explain how this change is in the community’s interest, and not just the interests of the big banks.”

Sources: The Australian, ABC.net.au, Sky News

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Contact Info:
Name: James Owens
Organization: Australian Business Review

Release ID: 80387