Issue 735, 3 February 2020
In this issue:
- Royal Commission implementation: exposure draft legislation
Royal Commission implementation: exposure draft legislation
Treasury has released an extensive package of consultation materials dealing with implementation of several recommendations made in the final report of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry (see ASFA Action issue 697). In broad terms, the recommendations covered by this package involve enhancing consumer protections and strengthening the regulators.
Of potential relevance for superannuation, the consultation package includes draft legislation addressing:
- Recommendation 1.15 – enforceability of financial services industry codes
- Recommendations 2.1 and 2.2 – ongoing fee arrangements and disclosure of lack of independence
- Recommendation 3.1 – trustees of registrable superannuation entities to hold no other role or office
- Recommendations 3.2 and 3.3 – advice fees in superannuation
- Recommendations 3.4 and 4.1 – no hawking of superannuation and insurance products
- Recommendations 3.8, 6.3 6.4 and 6.5 – adjustment of superannuation regulator roles
- Recommendation 4.6 – limiting avoidance of life insurance contracts for unintentional misrepresentation or non-disclosure
- Recommendations 2.7, 2.8, 2.9 and 7.2 – strengthening breach reporting requirements for Australian financial services licensees
- Recommendation 6.14 – establishing the Financial Regulator Assessment Authority
- Additional commitment in response to recommendation 7.2 – providing ASIC with powers to give directions to financial services and credit licensees consistent with the recommendations of the ASIC Enforcement Review Taskforce.
If you have any feedback you would like ASFA to consider in responding to the draft legislation, please forward it to Maggie Kaczmarska by close of business Wednesday, 19 February.
The ASFA Royal Commission Working Group will also be consulted to help shape ASFA’s response to the draft legislation.
ASFA REGULATORY WATCHLIST
ASFA’s Regulatory Watchlist (ARW) tracks developments in Legislation, inquiries, consultations
and other regulatory announcements relevant to superannuation.