- Financial Sector Reform (Hayne Royal Commission Response) Bill 2020 was introduced on 12 November 2020
- This implements a further 20 recommendations of the Banking Royal Commission
- The Government is now focussed on completing implementation of the remaining Royal Commission recommendations with an updated roadmap
The Financial Sector Reform (Hayne Royal Commission Response) Bill 2020 was introduced on 12 November 2020, and to the House of Representatives on 9 December, to implement a further 20 recommendations of the Banking Royal Commission, including:
- clarifying the role of the regulators (ASIC and APRA) and the reporting of breaches
- strengthening the unsolicited selling (anti-hawking) provisions, including for superannuation and insurance products
- allowing provisions in financial services industry codes to be enforceable, with breaches attracting civil penalties
- introducing mandatory reference checking and information sharing obligations for AFS licensees engaging a financial adviser or mortgage broker
- making the handling and settlement of insurance claims a "financial service"; and
- introducing a deferred sales model for add-on insurance products.
These measures were originally announced by the Government on 4 February 2019 and previously released in exposure draft form on 31 January 2020. Some of the amendments will apply from the later of the day after assent to the Bill and 1 January 2021.
With the introduction of this batch of legislation, Treasurer, Josh Frydenberg, said the Government is now focussed on completing implementation of the remaining Royal Commission recommendations consistent with the updated roadmap. The measures that the Government had indicated would be introduced into the Parliament by December 2020 will now be introduced by 30 June 2021. The commencement dates contained in the exposure draft legislation, were also extended by six months.