Grandfathering to end
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.
Recommended for you
Ethical considerations fall down the list in terms of priorities for consumers seeking financial advice when there is a pessimistic economic environment, according to the RIAA study.
In a never-ending saga, the case management hearing to settle on the final sum for the AMP BOLR class action has been delayed for a third time.
Money Management explores which actions the Financial Services and Credit Panel is taking when it considers the outcomes of cases.
Reacting to the Compensation Scheme of Last Resort levy, the FAAA said another levy in addition to the existing ASIC levy will drive advice firms out of business.