The Banking Royal Commissions final report was released yesterday, with over 70 recommendations targeting the banks and regulators.
Both the Coalition and Labor have agreed to support the Commission’s findings, with the government set to announce specifics in the coming weeks.
Mortgage brokers, Financial advisors, Superannutation and Insurance are the most affected by the commission’s recommendations – here are some highlights with links to articles explaining more in detail:
- Mortgage brokers will have to act in the interests of borrowers with significant penalties if they fail to do so.
- There are changes to the way mortgage brokers will be paid, with a special focus on commissions.
- Car dealers will face changes to the way they offer finance to customers.
- More action against those who charge customers for financial advice not received – with the Big Four already expected to pay $850m in remediation over these issues alone.
- Financial advisors should report into a new disciplinary system where advisors must be registered and monitored.
- Creation of a single default superannuation account per worker and curbing overselling of Super products.
- If banks and financial services companies break industry codes, there should be bigger financial penalties to act as a proper detterent.
- The regulators ASIC and APRA should be monitored by a new body and must coordinate their activities more effectively.
We will update this post as new information arrives – however legislative changes are not likely in the short term – mainly because there aren’t many sitting weeks of parliament before the next election. Which means the Commissions findings will be a hot topic in the upcoming election campaign.