The Federal Government’s commitment to implement changes to regulatory and legislative settings could prove a game changer for Queensland Country and other Member owned financial institutions, resulting in better outcomes for their Members.

The announcement comes as the Hammond Review in Reforms for co-operative, mutual and member-owned firms handed down its recommendations for reform this week.

Queensland Country CEO, Aileen Cull, said The Hammond Review recommends a number of changes that will improve the ability of customer-owned financial institutions to raise capital.

“Customer-owned institutions have faced unfair challenges in the past, that the big four banks are not impeded by, that made it difficult to raise additional capital to support growth and ensure they remain competitive.

“Access to capital is vitally important to sustain ongoing investment into new technologies for our Members and to grow as an organisation.

“Ultimately these enhancements will allow the co-operative sector to remain competitive and continue to offer its customers better deals and financial products.

“We support Hammond Review’s recommendations and welcome the Federal Government’s commitment to implement all of them.

The Federal Government has accepted Hammond recommendations to:

  1. encourage APRA and ASIC to facilitate the issue of capital instruments by mutual ADIs
  2. consider the effectiveness of the current ‘demutualisation’ provisions in the Corporations Act
  3. encourage ASIC to have further dialogue with mutual ADIs about the disclosure of small scale offers of converting capital instruments
  4. promptly fix a tax anomaly with Tier 2 capital instruments issued by mutual ADIs
  5. amend the Corporations Act to expressly permit mutuals to issue capital instruments without risking their mutual structure or status
  6. amend the Corporations Act to include a definition of a mutual company, and
  7. encourage ASIC to provide regulatory guidance on the duties of directors of mutuals