The Federal Government will move the legislation to end grandfathered commissions as of 1 January, 2021 in the Parliament on Thursday.
The Federal Treasurer, Josh Frydenberg announced the decision to introduce the necessary legislation in a statement issued today.
He said the move was in line with meeting the key recommendations of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.
Frydenberg said Government's reform would benefit retail clients, as they will received higher quality advice and stop paying higher fees to fund grandfathered conflicted remuneration.
He said the Treasury Laws Amendment (Ending Grandfathered Conflicted Remuneration) Bill 2019 implemented the Government's response to the Final Report, to end the grandfathering of conflicted remuneration by 1 January 2021.
To ensure that the benefits of industry renegotiating current arrangements to remove grandfathered conflicted remuneration ahead of 1 January 2021 flow through to clients, the Government has commissioned ASIC to monitor and report on the extent to which product issuers are acting to end the grandfathering of conflicted remuneration.