Recommendation 2.5 – Life insurance commissions review

ASIC will include the factors identified by the Royal Commission in undertaking its post implementation review of the 2017 life insurance reforms. ASIC’s review will take place in 2021.

Recommendation 6.2 – ASIC’s approach to enforcement

ASIC has established an Office of Enforcement within ASIC. The purpose is to strengthen ASIC’s enforcement culture and effectiveness, and to implement a single enforcement strategy for ASIC. The Office will lead the application of ASIC’s ‘why not litigate’ enforcement approach.

Recommendation 6.10 – Cooperation memorandum

APRA and ASIC are reviewing the cooperation and coordination arrangements between the two agencies, including revising the existing Memorandum of Understanding. This review is expected to be completed before the end of 2019.

Recommendation 6.12 – Application of the BEAR to regulators

ASIC will implement this recommendation in anticipation of the Government’s establishment of a financial regulator oversight authority. ASIC will develop and publish accountability statements before the end of 2019.

Additional commitment in response to Recommendation 2.4 – End of Grandfathered commissions

ASIC will monitor and report on the extent to which product issuers are acting to end the grandfathering of conflicted remuneration in the period 1 July 2019 to 1 January 2021, as directed by Government.