ASIC has released Consultation Paper 132 Trustee companies: Financial requirement and conduct obligations (CP 132) seeking public comment on the financial requirements and other conduct obligations for trustee companies that provide traditional trustee company services (traditional services), such as acting in deceased estates and under powers of attorney.

Under recent amendments, the provision of traditional services by trustee companies will be regulated as a financial service under the Corporations Act and will be brought under the supervision of ASIC. Revised draft regulations under the Corporations Act for trustee companies were recently released for further public comment.

ASIC will also be consulting in the future on the dispute resolution requirements for trustee companies .

Those trustee companies providing traditional services which currently hold an Australian Financial Services (AFS) licence must vary their licence to include the provision of traditional services within six months of the regulations commencing.

Treasury is currently consulting on transitional arrangements for those trustee companies currently providing traditional services that do not hold an AFS licence.

Submissions on the proposals contained in the consultation paper close on Wednesday 7 April 2010.