Labor said it will act on 75 recommendations laid out in the final report, leaving out the mortgage broker remuneration changes that it first backed when the report was released.
The opposition has affirmed that they will fully implement the royal commission’s recommendation to end the hawking of insurance products, to ensure there are consequences when the big banks breach industry codes and to ban life insurance commissions if ASIC finds there is no clear justification for retaining them.
It has also released three bills to crack down on the banks, but said it would struggle to legislate them unless extra sitting weeks in March are agreed to, before a federal election.
Labor would also establish a victim compensation package, giving victims the opportunity to pursue a just outcome, and for all consumers to benefit from quadrupled AFCA compensation caps going forward.
While Labor would abolish trail commissions from lenders to mortgage brokers and aggregators on new loans from 1 July 2020 as well as banning volume-based commissions and “soft dollar” payments being offered to brokers by lenders, it has softened its stance towards introducing a consumer-pays fee structure.
“Labor’s position is crystal clear – we will implement 75 recommendations in full,” said shadow treasurer Chris Bowen.
“The single remaining recommendation – Recommendation 1.3 – will be implemented in a manner that will achieve the objectives set out by Commissioner Hayne.
“Labor called for this royal commission. Labor fought for this royal commission. And Labor will work day and night to ensure that we deliver the reforms recommended by the royal commission.”