Additional Commitments

Additional commitment in response to Recommendation 2.4 — Direct ASIC to undertake grandfathering review

On 22 February 2019, the Government directed ASIC to monitor and report on industry actions from 1 July 2019 to 1 January 2021 (the period leading up to the end of grandfathered conflicted remuneration for financial advisers).

Additional commitment in response to Recommendation 7.1 — Payment of unpaid external dispute resolution (EDR) determinations

On 4 April 2019, regulations were made to enable the payment of unpaid determinations made under the Financial Ombudsman Service (FOS) Terms of Reference and the Credit & Investments Ombudsman (CIO) Rules.

The Department of Industry, Innovation and Science is administering the payments of unpaid EDR determinations through the Business Grants Hub.

Additional commitment in response to Recommendation 7.1 — Expanding AFCA’s remit to consider past disputes

On 20 February 2019, the Government extended AFCA’s remit to consider financial complaints dating back to 1 January 2008, providing expanded access to redress for consumers and small businesses harmed by financial misconduct. AFCA commenced receiving legacy complaints from 1 July 2019.

Additional commitment — Extend legislation for the Product Intervention Power and Design and Distribution Obligations to additional products

The Government extended the Product Intervention Power and Design and Distribution Obligations legislation so that it applied to credit and Australian Securities and Investments Commission Act 2001 products. The legislation received Royal Assent on 5 April 2019.

Additional commitment — Commence a review of financial counselling

On 7 February 2019, the Government commissioned a review of the coordination and funding of financial counselling services, led by Louise Sylvan AM. That review has now been completed and the Government is considering its response.

Additional commitment — Consult on superannuation binding death benefit nominations for Indigenous people

From 29 March to 24 May 2019, the Government consulted on a discussion paper: Superannuation binding death benefit nominations and kinship structures. The Government is considering its response to the outcomes of those consultations.

Additional commitment — Review of the effects of vertical and horizontal integration in the financial system

The Australian Competition and Consumer Commission now considers integration issues in the financial system where they are identified as part of its market studies work.