Customers could benefit financially if plans to end the grandfathering of conflicted remuneration to financial advisers comes into effect on 1 January 2021.
The Royal Commission into misconduct in the banking, superannuation and financial services industry recommended that such arrangements be removed as soon as practicable.
In response, the Australian government released a draft bill in February 2019 that enables money to be paid back to customers for contracts extending beyond 1 January 2021.
The purpose of the Treasury Laws Amendment (Ending Grandfathered Conflicted Remuneration) Regulations (the Regulations) is to amend the Corporations Regulations 2001 to provide for a scheme by which conflicted remuneration that remains payable after 1 January 2021 will be rebated to affected retail customers or passed on in the form of a monetary benefit.
To get feedback from industry, the treasury has opened a consultation process.
Advisers and interested third parties have until 25 April 2019 to respond.
