Banks should implement fully the recommendations of the Sedgwick Review.
Government Response
The Government supports banks fully implementing the recommendations of the Sedgwick Review.
Navigation
- Government Response
- Foreword
- Restoring Trust in Australia’s Financial System
- The Government will build on its existing reforms
- Strengthening protections for consumers, small businesses and rural and regional communities
- Enhancing accountability
- Ensuring strong and effective financial system regulators
- Further improving consumer and small business access to redress
- Implementing the reforms to achieve lasting change
- Recommendations – Banking
- 1.1 — The NCCP Act
- 1.2 — Best interests duty
- 1.3 — Mortgage broker remuneration
- 1.4 — Establishment of working group
- 1.5 — Mortgage brokers as financial advisers
- 1.6 — Misconduct by mortgage brokers
- 1.7 — Removal of point of sale exemption
- 1.8 — Amending the Banking Code
- 1.9 — No extension of the NCCP Act
- 1.10 — Definition of ‘small business’
- 1.11 — Farm debt mediation
- 1.12 — Valuations of land
- 1.13 — Charging default interest
- 1.14 — Distressed agricultural loans
- 1.15 — Enforceable code provisions
- 1.16 — 2019 Banking Code
- 1.17 — BEAR product responsibility
- Recommendations – Financial Advice
- 2.1 — Annual renewal and payment
- 2.2 — Disclosure of lack of independence
- 2.3 — Review of measures to improve the quality of advice
- 2.4 — Grandfathered commissions
- 2.5 — Life risk insurance commissions
- 2.6 — General insurance and consumer credit insurance commissions
- 2.7 — Reference checking and information sharing
- 2.8 — Reporting compliance concerns
- 2.9 — Misconduct by financial advisers
- 2.10 — A new disciplinary system
- Recommendations – Superannuation
- 3.1 — No other role or office
- 3.2 — No deducting advice fees from MySuper accounts
- 3.3 — Limitations on deducting advice fees from choice accounts
- 3.4 — No hawking
- 3.5 — One default account
- 3.6 — No treating of employers
- 3.7 — Civil penalties for breach of covenants and like obligations
- 3.8 — Adjustment of APRA and ASIC’s roles
- 3.9 — Accountability regime
- Recommendations – Insurance
- 4.1 — No hawking of insurance
- 4.2 — Removing the exemptions for funeral expenses policies
- 4.3 — Deferred sales model for add on insurance
- 4.4 — Cap on commissions
- 4.5 — Duty to take reasonable care not to make a misrepresentation to an insurer
- 4.6 — Avoidance of life insurance contracts
- 4.7 — Application of unfair contract terms provisions to insurance contracts
- 4.8 — Removal of claims handling exemption
- 4.9 — Enforceable code provisions
- 4.10 — Extension of the sanctions power
- 4.11 — Co operation with AFCA
- 4.12 — Accountability regime
- 4.13 — Universal terms review
- 4.14 — Additional scrutiny for related party engagements
- 4.15 — Status attribution to be fair and reasonable
- Recommendations – Culture, Governance and Remuneration
- 5.1 — Supervision of remuneration — principles, standards and guidance
- 5.2 — Supervision of remuneration — aims
- 5.3 — Revised prudential standards and guidance
- 5.4 — Remuneration of front line staff
- 5.5 — The Sedgwick Review
- 5.6 — Changing culture and governance
- 5.7 — Supervision of culture and governance
- Recommendations – Regulators
- 6.1 — Retain twin peaks
- 6.2 — ASIC’s approach to enforcement
- 6.3 — General principles for co regulation
- 6.4 — ASIC as conduct regulator
- 6.5 — APRA to retain functions
- 6.6 — Joint administration of the BEAR
- 6.7 — Statutory amendments
- 6.8 — Extending the BEAR
- 6.9 — Statutory obligation to co operate
- 6.10 — Co operation memorandum
- 6.11 — Formalising meeting procedure
- 6.12 — Application of the BEAR to regulators
- 6.13 — Regular capability reviews
- 6.14 — A new oversight authority
- Other Important Steps
- Additional Government Actions