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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.

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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.




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A Life Risk commission cap recommended at zero.
It is now completely apparent that Hayne and the Govt understands nothing at all about Life Risk Insurance.
The agenda was already at zero at the commencement of the Royal Commission.
A reduction to a commission base of zero will destroy the industry in it's entirety and leave hundreds of thousands of Australian's inadequately protected and financially vulnerable to unforseen circumstances.
This is an error in judgment of immense proportion and identifies a distinct lack of understanding.
This recommendation to reduce Life Risk commissions to zero in the name of protecting the consumer will now result in significant cost increases in seeking advice with no reduction in premium cost.
The cost of obtaining quality risk insurance advice has just increased significantly and the consumer will be significantly worse off.

You should read Hayne’s detailed findings on the issue of underinsurance - he held off on recommending it goes to nil, only saying that ASIC should review it, because he believes that the underinsurance argument carries no weight.

Coming from a retired justice who has probably never had a need for anything except IP..

This is a desperate grab for political points and votes prior to a very tenuous election period.

Separately the Govt to be (THELABOR PARTY AND INDUSTRY FUNDS) have declare their abhorrence of Advised Life Insurance. So it appears that RC Haynes and SC ORR, etc have sided with this viewpoint and are determined to do away with ADVISED Sales of Life Insurance. So the generally ignorant Public and those who advise them, including CHOICE, would have the public UNDERINSURED,
USING POOR QUALITY PRODUCTS
USING PRODUCTS WITH HIGH COSTS FOR WHAT ONE GETS
NO UP FRONT UNDERWRITING TO DETERMINE WHETHER THE THOUISANDS OF DOLLARS TO BE SPENT ON GROUP INSURANCE WILL EVER BE PAID AT CLAIM TIME
NO REFUNDS OF PREMIUMS WHEN AT CLAIM TIME IT IS DETERMINED THAT THE INSURED WAS "UNINSURABLE" INITIALLY
INADEQUATE COVERAGE OF PEOPLE GENERALLY BECAUSE NO ONE WILL BE INCETIVISED TO Take the time to EXPLAIN THE VALUES OF LIFE INSURANCE
QUICK DEATHS WHEN PEOPLE DO NOT HAVE ENOUGH MONEY TO PAY FOR LIFE SAVING NEW MEDICINES NOT YET SUBSIDISED ON THE PBS BUT CERTAINLY KNOWN THROUGH O'SEAS TRIALS TO BE EFFICACIOUS
LOSS OF AN UNINSURED BREAD WINNER IN A FAMILY CAUSING STRIFE FOR DEPENDENT FAMILY MEMBERS.

IMAGINE THE COUNTER ARGUMENTS : OH WELL, THE DEPENDENT SPOUSE WITH MANY KIDS CAN READILY REMARRY, OR GET A JOB, OR RELY ON THE WIDOWS PENSION OR SEEK CROWD FUNDING OR SIT ON A PAVEMNET GROVELLING FOR HANDOUTS!

GOOD QUALITY LIFE INSURANCE IS THE ONLY WAY TO PLAN FOR A TOLERABL FUTURE!

THE PRESENT MODEL WHICH REWARDS ADVISERS OVER TIME IS THE ONLY OPTION AND IS THE BEST.

Great, we're were prevaricating over whether we should continue offering insurance advice to clients but this has sealed the deal. No more in future.

One less area of risk to our business and no more potential pro bono claim work like we've done in the past.

Couple this bs with the implications of Bowen & Shorten screwing over our economy with their proposed tax reforms, and say good bye to 'the lucky country' and hello to a new form of economic hell and complete wealth destruction - unless of course you're a crooked union who jumps into politics or better still managing a super fund.

The problem is there is little care for our industry by politicians and media. Financial planners are taken for granted our real worth has been decimated by self interested parties. We are expected to service clients, self-educate, comply with every facet of chapter 7 of the corporations act, pay ongoing fees, office expenses etc. etc., but are livelihoods are slowly being chipped away. I don't why I even bothered to complete a Master of Financial Planning and being treated with such disrespect and disdain. Wait until your clients start requesting no fees for service because they may be getting brainwashed by all this adverse publicity.

If you read the report, Hayne thinks most Australian's are covered reasonably well by the default insurance in their super funds and he downplays the benefits of getting advice from an adviser. How breathtakingly ignorant. If the FPA ever needed to get on the front foot, it is right now because we cannot let these government bureaucrats continue to peddle such absurd nonsense. These default insurances need to be exposed and a serious media campaign needs to be commenced, much like the ISA compare the pair ads.

Hayne is a muppet pure and simple. Shows that despite having a degree and supposedly professional career, you can still be dumb as rocks.

Just amazing that in the stroke of a pen now the circus has finished Hayne comes along and says that the end of your earnings and the Government says ok. No consideration is given to small businesses and the impact on them and their staff as well as clients, this could be the nail in the coffin for so many good advisors.
This comes from the Legal Profession who should also have a royal commission into their behaviour and practices.

I predict the phrase "on just terms' will be rolled out by Slater & Gordon, Shine Lawyers and Maurice Blackburn when they see the pot of gold in commission (property) which has been acquired by the government with this legislative acquisition. 2-3 times commission. Get ready for a big invoice Josh. It will be like watching the castle..how much does he want for the jousting sticks?..tell him he's dreaming.

Yes, the only winners of CLASS ACTION CASES are the Lawyers who take the major part of the winnings and hand over a few crumbs to the poor suckers who employed them. Yes it is profit gouging in the biggest way possible. and at the end of the day the Layers will try to hide the settlement figure which is "confidential" between them and the Party being sued. I KNOW. I HAVE BEEN THERE !!!

You planners thought it was your right to steal and cheat me. Thank you Hayne for stopping these thieves who call themselves financial planners from robbing my retirement nest egg under the provision of "grandfathering"

'You planners' Labelling every single planner with same brush is both ignorant and idiotic. I would like you to have a conversation with some of my clients, one most recently with a young family that would have lost his house, and be on the street without the advice he was given 2 years ago, and yes there are many of these good stories like this, just like the 'worst of worst' stories that have been depicted through 'Hayne's' agenda of basically decimating the industry, and the many good advisor's careers in the process.

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