Borrow
Government introduces royal commission laws
The government is striving to implement a number of the royal commission recommendations in a package that was recently introduced to Parliament.
Government introduces royal commission laws
The government is striving to implement a number of the royal commission recommendations in a package that was recently introduced to Parliament.
The reforms that were introduced Thursday, 12 November, have addressed 20 of the 76 recommendations from the Hayne royal commission, as well as one additional recommendation from the government.
The reforms have included tougher anti-hawking provisions for superannuation and insurance products to prevent pressure selling, prohibiting superannuation trustees from having a duty to act in the interests of a person other than those arising from their duties as a trustee and allowing provisions in financial services industry codes to be enforceable.
Super Consumers Australia has welcomed the introduction, stating it will strengthen the arm of regulators and allow them to protect individual members who had their retirement savings jeopardised by the miscount of super funds.
“The cost of being sold into a poor quality super fund can mean the difference between a comfortable retirement or struggling to pay the heating bill,” said Xavier O’Halloran, director of Super Consumers Australia.
“We’re especially pleased that the new legislation makes it crystal clear that it’s illegal to hawk a member of a MySuper product into a choice product offered by the same fund. The complementary reforms announced in the federal budget to end the creation of duplicate accounts make it even more important that people end up in a single quality fund and are not sold a lemon,” Mr O’Halloran said.
The legislation will also include breaches of industry codes that could now attract civil penalties – with the government targeting better adherence to the standards and certainty for consumers.
The government has promised to provide further clarity on the role of the regulators, as well as enhance the requirements of reporting breaches from financial institutions, with the intention being to report and investigate significant misconduct sooner.
The package also included a deferred sales model for add-on insurance products, to promote informed purchasing decisions and prevent inappropriate sales, as well as defining the handling and settlement of insurance claims as a “financial service”, which will require insurers to comply with other licensing obligations. Insurers will also be expected to act honestly, efficiently and fairly under the law.
Australian Banking Association (ABA) chief executive Anna Bligh reported the industry is ready for the next round of the royal commission reforms, to come into effect from next year.
According to the body, the banks have fully implemented five of the eight Hayne recommendations, which were directed at the industry to adopt, with progress being made on the remaining three.
Almost half (31) of the recommendations were relevant to banks, with 37 of the total 76 to be implemented by government and regulators.
“Banks have been partnering with the government during the pandemic to support customers and the economy and look forward to continuing that engagement as the royal commission legislation is considered,” Ms Bligh said.
A statement from Treasurer Josh Frydenberg said the government is focused on completing the implementation of the remaining Hayne commission recommendations, consistent with its updated roadmap following the onset of COVID.
About the author
About the author
Banking
Wealth giants hit with $3m penalty for fees for no service
The Federal Court has issued Westpac subsidiaries, BT and Asgard, $3 million in penalties for charging fees for no service and making misleading statements to consumers. ...Read more
Banking
Is Australia’s open banking system falling short?
The era of open banking in Australia has arrived, but are consumers being let down by accuracy problems with the data involved? ...Read more
Banking
Companies usher their employees to vaccine sites
In a bid to reopen the Australian economy, various business groups, including the big four banks, will pay their casual staff to get a COVID-19 jab. ...Read more
Banking
Big 4 extends freeze on foreclosures until 2022
A major bank has announced that it is extending the freeze on foreclosures it first announced in November 2020, until at least February 2022. ...Read more
Banking
COBA warns of ‘a python squeeze to competition in retail banking’
Retail banking industry advocates fear that new regulations will further entrench the dominance of Australia’s big four. ...Read more
Banking
ASIC drops criminal charges against AMP
The corporate watchdog has announced it has finalised an investigation into the alleged fees-for-no-service conducted by AMP’s financial planning, as part of the royal commission into the banking s...Read more
Banking
Banks asked to prepare for negative interest rates
Banks have been told to draft plans to deal with the possibility of zero or negative interest rates by April 2022, with the aim to evade potential “operation challenges”. ...Read more
Banking
RBA makes cash rate call amid wild speculation
The Reserve Bank of Australia has made its first call on the official cash rate for this financial year. ...Read more
The Olympic effect on property and equity investors; COVID-19 Disaster Payments and super
Listen now
Do lockdowns boost property prices? Are short-sellers levelling the playing field? Did you lodge your tax returns early?
Listen now
Will lockdowns halt the housing boom? Is the metaverse taking over? And the cons of lodging your tax returns early
Listen now
Are you being priced out of the market? Have you got the Tuesday blues? And are you ready for the upcoming super changes?
Listen now
Banking
Wealth giants hit with $3m penalty for fees for no service
The Federal Court has issued Westpac subsidiaries, BT and Asgard, $3 million in penalties for charging fees for no service and making misleading statements to consumers. ...Read more
Banking
Is Australia’s open banking system falling short?
The era of open banking in Australia has arrived, but are consumers being let down by accuracy problems with the data involved? ...Read more
Banking
Companies usher their employees to vaccine sites
In a bid to reopen the Australian economy, various business groups, including the big four banks, will pay their casual staff to get a COVID-19 jab. ...Read more
Banking
Big 4 extends freeze on foreclosures until 2022
A major bank has announced that it is extending the freeze on foreclosures it first announced in November 2020, until at least February 2022. ...Read more
Banking
COBA warns of ‘a python squeeze to competition in retail banking’
Retail banking industry advocates fear that new regulations will further entrench the dominance of Australia’s big four. ...Read more
Banking
ASIC drops criminal charges against AMP
The corporate watchdog has announced it has finalised an investigation into the alleged fees-for-no-service conducted by AMP’s financial planning, as part of the royal commission into the banking s...Read more
Banking
Banks asked to prepare for negative interest rates
Banks have been told to draft plans to deal with the possibility of zero or negative interest rates by April 2022, with the aim to evade potential “operation challenges”. ...Read more
Banking
RBA makes cash rate call amid wild speculation
The Reserve Bank of Australia has made its first call on the official cash rate for this financial year. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
