The review will cover the steps taken by industry participants from 1 July 2019 until the 2021 deadline, ASIC said in a statement.
It will conduct both quantitative and qualitative reviews, as well as investigate any impediments to this transition, and the extent to which benefits are being passed on to affected clients.
For the quantitative study, ASIC will conduct a survey of entities known to pay grandfathered conflicted remuneration to Australian Financial Services (AFS) Licensees or their representatives and require them under notice to provide data:
- initially for a 12-month period (from 1 July 2018 to 30 June 2019); and
- thereafter on a quarterly basis for the review period (for example, reporting for the period from 1 July to 30 September 2019 will be in October 2019).
The first notices to entities were issued yesterday and they will be required to provide their responses via a web portal, ASIC said.
As for the qualitative review, ASIC said it will include a smaller sample of entities that pay and receive grandfathered remuneration. This will involve more detailed engagement and analysis during the review period.
ASIC said it will analyse the information from both reviews and is expected to report to the Treasurer by 30 June 2021. Further, the report will also be released to the public.
how many reviews can one sector have. just shut off financial planning. let people figure it out themselves.
once people set up demonstrations and there is real demand we can open up shop
the first batch of the new advisers should come from asic, kell should lead the charge.
actually, i don’t think kell is capable of generating even a single client
So, the Government, pre-election, so they could be seen to be doing something, asked ASIC to investigate the extent to which grandfathering is being voluntarily ended by the industry and whether the benefits were being passed on to affected clients, assumedly as a precursor to framing their legislative response.
ASIC never did as asked, and we now have legislation to end grandfathering as of 1 January 2021, including a framework for rebating previously grandfathered remuneration to affected clients.
So what on gods earth is ASIC undertaking this investigation now going to achieve?
Given the trailing commission is a vital source of income for many small businesses and it will take time to transition clients to new fee for service arrangements why is ASIC meddling with institutions to make these changes before the 1/1/20 deadline ? Surely the point of the delayed deadline is to assist all players transition to this new arrangement and acknowledges this takes time. It is also noteworthy that Centrelink will penalise clients that move from one product to another. Wouldn’t it be more productive and in the best interest of the public for ASIC to review this adverse implication of the change with Centrelink rather than meddling with institutions.
ASIC . Government politicians. Biggest crooks of them all
Can some one please explain what the ‘reporting’ to ASIC is meant to achieve except trying to twist the providers arm to just turn it off early to save them the ‘reporting’ exercise? How is this not intimidation tactics by the Govt and ASIC?
Strong arm tactics to apply public pressure for something that is not yet legislated. Imagine the the response if a business did this to a consumer!
Why are ASIC monitoring the transition to a proposed GF ban before it has been legislated?
So the talk is that 15 advisers so far have taken their own lives since the RC.
Is it any wonder?
If this kind of bullying occurred in the medical or legal profession…there would be rioting on the streets.
But we advisers are just taking it.
so all this is really is ASIC forging ahead with their illegal act to break the (legal and binding) contract advisers have with fund managers / life offices and go hell for leather in the further destruction of small business. Good one ASIC