Powered by MOMENTUM MEDIA
moneymanagement logo
 
 

ASIC pushes design and distribution out to late 2021

regulation/ASIC/DDO/treasury/

11 May 2020
| By Mike |
image
image image
expand image

Consistent with the Federal Treasurer, Josh Frydenberg’s announcement around the delayed implementation of Royal Commission recommendations, the Australian Securities and Investments Commission (ASIC) has announced it will not be proceeding with mortgage broker best interest duty and remuneration reforms or design and distribution obligations for at least six months.

The regulator, which in mid-March announced a recalibration of its regulatory priorities said it would be deferring the commencement date of the mortgage broker best interest duty and remuneration reforms and the design and distribution obligations for six months from their original commencement dates.

This is even though both measures had already been legislated. It said it was doing so, given the significant impact of COVID-19 on the Australian economy, especially on the financial system and consumers.

“ASIC will defer the commencement date for the mortgage broker reforms until 1 January, 2021. ASIC will defer the commencement date for the design and distribution obligations until 5 October 2021,” it said.

“The deferral of these reforms follows, and is consistent with, the Government’s announcement to defer by six months the implementation of commitments associated with the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry as a result of the significant impacts of COVID-19.

“ASIC has deferred the commencement dates so industry participants can focus on immediate priorities and the needs of their customers at this difficult time. In making this decision, ASIC also had regard to the important protections for consumers that these requirements introduce.

“We expect entities will continue preparing for commencement on the extended timeline. ASIC has also conveyed our expectations of meeting consumer needs at this time, including directly to lenders and insurers.”

 

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

The succession dilemma is more than just a matter of commitments.This isn’t simply about younger vs. older advisers. It’...

2 days 14 hours ago

Significant ethical issues there. If a relationship is in the process of breaking down then both parties are likely to b...

3 weeks 6 days ago

It's not licensees not putting them on, it's small businesses (that are licensed) that cannot afford to put them on. The...

1 month ago

After last month’s surprise hold, the Reserve Bank of Australia has announced its latest interest rate decision....

4 weeks 1 day ago

ASIC has released the results of the latest adviser exam, with August’s pass mark improving on the sitting from a year ago. ...

5 days 8 hours ago

While the profession continues to see consolidation at the top, Adviser Ratings has compared the business models of Insignia and Entireti and how they are shaping the pro...

2 weeks ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND