The Australian government has deferred the implementation of phases two and three of the Royal Commission into the misconduct in the banking, superannuation and financial services industry.
Federal treasurer Josh Frydenberg said that the recommendations of the review into the sector will be postponed for six months, as a result of the impact of the covid-19 outbreak.
“The deferral will enable the financial services industry to focus their efforts on planning for the recovery and supporting their customers and their staff during this unprecedented time.
“Under the updated timetable, those measures that the government had indicated would be introduced into the parliament by 30 June 2020, will now be introduced by December 2020.
“Similarly, those measures originally scheduled for introduction by December 2020 will now be introduced by 30 June 2021,” he added.
Getting it right
Philip Kewin, chief executive of the Association of Financial Advisers (AFA) in Australia, said the move will give some level of certainty to advice businesses in the country.
Adding that it will also give time to the government to take into consideration industry views and consultation when drafting the measures.
“We recognise that the government has committed to the implementation of these two packages of recommendations, including the ones related to financial advice; however, there have already been significant regulatory reforms in the area of financial advice and some reforms, such as the Professional Standards for Financial Advisers, [which] are still being implemented.”
“Access to financial advice will be critical for Australians as we work our way through this crisis. We expect that the government will closely monitor the full impact of the crisis, and continue to assess the right timing for moving forward with these reforms.
“The AFA remains hopeful that this sensible deferral will allow time for more consultation, and looks forward to working with the government to consider the proposals that have been put forward to improve the exposure draft legislation, in order to ensure that these important reforms are both achievable and practical,“ he added.
