Six-month deferral for Royal Commission commitments

8 May 2020

The implementation of recommendations from the Royal Commission will be deferred for six months to allow the industry to deal with the impact of COVID-19.

In a statement, the Treasurer Josh Frydenberg said there would be a deferral to allow the financial services industry to focus on the economic recovery and supporting customers.

The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry recommendations had originally been scheduled to be introduced in June and December, 2020. Under the new rules, they would now be introduced by December 2020 and June 2021.

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Frydenberg said: “This announcement balances the need to implement the recommendations of the Royal Commission with the need to ensure our financial institutions are in a position to devote their resources to responding to the significant challenges posed by the coronavirus.

“The changes will also provide certainty and clarity to all stakeholders about the Government’s commitment to implementing the recommendations arising out of the Royal Commission.”

Since the final report from Commissioner Kenneth Hayne was released, some 24 commitments had already been implemented.

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So Sad - too late. ASIC and the Super funds have already imposed them.

I really don't see the effect or relief to advisers? What are they deferring that effects us? The damage is done. The only thing now would be the FASEA exam.

Good point. Annual Opt-In is the only issue of substance I can think of.

On the other hand, the government also seems to be deferring any reduction to the onerous compliance burden on advice. One obvious area is the removal of TPB from financial adviser regulation. The government has been sitting on a TPB review report since October last year, that canvassed this option. When Jane Hume was asked about this in the FPA webinar last week she acknowledged there were way too many regulators of financial advisers. But she completely sidestepped any accountability for the TPB review delay, saying it's the responsibility of Assistant Treasurer Michael Sukkar.

All adviser associations need to be questioning why Sukkar has done nothing to remove the TPB from financial adviser regulation. He's the Member for Deakin, so if any adviser out there lives in his electorate, can you do everyone a favour and raise this issue with him please?

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