The Federal Treasurer, Josh Frydenberg has said the Government will take action on all 76 recommendations contained in the final report of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.
Included in the moves will be the real of grandfathered conflicted remuneration as soon as reasonably practicable, with the Government accepting a timetable for removal of 1 January, 2021.
The Government has also signalled further moving on life risk commissions with the Royal Commission stating the cap should ultimately be reduced to zero.
In doing so, the Treasurer said the Government would be implementing a compensation scheme of last resort and that his message to the financial sector was that misconduct must and that consumers must come first.
As well, Frydenberg said the Government would be clarifying the roles of the financial services regulators with the Australian Securities and Investments Commission becoming the primary conduct regulator.
The Financial Services Minister says the amendments to the SIS Act within the first QAR bill will “clarify the law to affirm the status quo”.
Superannuation funds have thrown their support behind the QAR reforms but want a “clear statement” that they will not be required to check all member SOAs.
In its latest report, the corporate regulator says the deduction of advice fees has led to instances of “inappropriate erosion of members’ balances”.
Financial advice is having a significant impact on how Australians are engaging with the more complex aspects of their superannuation, new findings have shown.
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