The Financial Services Council (FSC) has urged the Government to hold further discussions around its Royal Commission implementation proposals for a new disciplinary system for financial advisers and a compensation scheme of last resort.
Responding to the release of the Government’s so-called Royal Commission Implementation Roadmap, FSC chief executive, Sally Loane specified the new disciplinary system for financial advisers as one of the issues which required further discussion with Government.
However, she said the FSC looked forward to working with the Government on implementing the Royal Commission’s other recommendations including ending grandfathered commissions for financial advisers, reference checking and information sharing for financial advisers and enforceable code provisions for industry codes of conduct.
The FSC broadly welcomed Treasurer, Josh Frydenberg’s release of the Implementation Roadmap with Loane saying it had provided certainty.
“It is very important to move quickly to rebuild consumer confidence and enhance consumer outcomes, however any legislation to implement the recommendations should be treated with the same diligence and rigor as any other new bill to be brought before the Parliament,” Loane said.
“The industry is committed to embracing this program of reform through action, strengthening the trust and ties between financial services and the community.”
However, Loane noted that the modernising of the default superannuation system to end the proliferation of duplicate accounts by implementing a ‘default once’ framework had not been dealt with as part of the Implementation Roadmap.
“We look forward to the Government providing a response to the issue and timing for the reform as part of its response to the Productivity Commission’s report into the efficiency of the super system,” she said.