There are recommendations that seek to change, or add to, the law, or industry codes of conduct, in ways that will increase protections to consumers from misconduct or conduct that falls below community standards and expectations. Those recommendations are: about Read More …
Category: Introduction
4.4 Culture, governance and remuneration
Because primary responsibility for misconduct in the financial services industry lies with the entities concerned and those who manage and control them, effective leadership, good governance and appropriate culture within the entities are fundamentally important. And culture, governance and remuneration Read More …
4.3 Regulators and compliance
The recommendations seek to improve the effectiveness of the regulators in deterring misconduct and ensuring that there are just and appropriate consequences for misconduct. Some recommendations seek to increase the ways in which the regulators can enforce the law by Read More …
4.2 Conflicts
Where possible, conflicts of interest and conflicts between duty and interest should be removed. There must be recognition that conflicts of interest and conflicts between duty and interest should be eliminated rather than ‘managed’. Several recommendations deal with conflicts of Read More …
4.1 Simplifying the law so that its intent is met
A general recommendation is that, as far as possible, exceptions and qualifications to generally applicable norms of conduct in legislation governing financial services entities should be eliminated (Recommendation 7.3). In this way, the first, and essential, step to take is Read More …
4 Recommendations: Answering the key questions
As I have already said, I think it useful to restate and reorder what I have set out above so that the reader can see the way in which particular recommendations fit together. Restated and reordered below, the recommendations seek Read More …
3.7 Other important steps
External dispute resolution Recommendation 7.1 – Compensation scheme of last resort The three principal recommendations to establish a compensation scheme of last resort made by the panel appointed by government to review external dispute and complaints arrangements made in its Read More …
3.6 Regulators
Twin peaks Recommendation 6.1 – Retain twin peaks The ‘twin peaks’ model of financial regulation should be retained. ASIC’s enforcement practices Recommendation 6.2 – ASIC’s approach to enforcement ASIC should adopt an approach to enforcement that: takes, as its starting Read More …
3.5 Culture, governance and remuneration
Remuneration Recommendation 5.1 – Supervision of remuneration – principles, standards and guidance In conducting prudential supervision of remuneration systems, and revising its prudential standards and guidance about remuneration, APRA should give effect to the principles, standards and guidance set out Read More …
3.4 Insurance
Manner of sale and types of products sold: Hawking Recommendation 4.1 – No hawking of insurance Consistently with Recommendation 3.4, which prohibits the hawking of superannuation products, hawking of insurance products should be prohibited. Recommendation 4.2 – Removing the exemptions Read More …