In a joint statement, Treasurer Josh Frydenberg and financial services minister Jane Hume said the new legislation released by the government would implement a further seven recommendations of the royal commission, including the establishment of a compensation scheme of last resort.
The CSLR laws were originally slated for release in December last year but were pushed back to June this year due to the COVID crisis, to the disappointment of consumer advocacy groups.
“The establishment of the Compensation Scheme of Last Resort will support ongoing confidence in the financial system’s dispute resolution framework by facilitating the payment of compensation to eligible consumers who have received a determination for compensation from AFCA which remains unpaid,” the statement said.
The laws would also address the establishment of the Financial Executive Accountability Regime, which extended the government’s existing BEAR framework to all APRA-related entities.
“The Financial Accountability Regime imposes a strengthened responsibility and accountability framework within financial institutions, recognising that decisions taken by directors and the most senior executives of financial institutions are significant for millions of Australians and the Australian economy,” the statement said.
“The Morrison Government remains committed to completing implementation of the Financial Services Royal Commission and in doing so ensuring Australians continue to have trust and confidence in a strong and effective financial system.”
Australia doesn’t have any genuine consumer advocacy groups anymore. They have been hijacked by fringe political activists who do not represent the real interests of most consumers.
“We’re committed to lowering the cost of advice” hahah of course you are! This will no doubt be another levy imposed on advisers……!
Has APRA actually disqualified anyone under the BEAR legislation or has it been the usual toothless tiger approach?
If the compensation scheme is to be funded by advisers then I’m out. That’s the straw that will break the camels back…
FEAR – that’s almost hilarious. Kinda rolls with Govt narrative right now.
So we are licenced via our licensee at the moment and included on the ASIC register of advisers.
So now we are going to be directly registered with ASIC and registered with our licensee.
What happens to PI insurance…is that our responsibility or the licensee?
What role does the Licensee now play?
Who does our annual audit? Licensee or ASIC?
The legislation states you may have 2 licensees? really?
Where are all the answers to these spelt out?
Or is just the Vibe, Its Mabo, Its everything really and subjective to you making your own decision.
Another wonderful piece of legislation written in crayon by our kindergarten lawyers.
Clear as mud again.
[b]Point 1: [/b]”The Financial Accountability Regime imposes a strengthened responsibility and accountability framework within [b]financial institutions[/b][i][/i], recognising that decisions taken by directors and the most senior executives of financial institutions are significant for millions of Australians and the Australian economy,” – I can’t wait to see how they still manage to swing this back at advisers.
[b]Point 2:[/b] “The Morrison Government remains committed to completing implementation of the Financial Services Royal Commission and in doing so ensuring Australians continue to have trust and confidence in a[b] strong[/b][i][/i] and effective financial system.” – Strong? Hah! What a joke that comment is.
The financial services industry has never been as fragile as what it is now. Adviser numbers (more than 95% of which have been long-term, honest hard-working advisers without complaint) have been slashed by around 50% (probably more come Jan 1, 2022) as a result of this Governments obsession with over regulation and compliance that’s made it pretty much damn impossible to remain viable now.
I’d suggest strongly that the percentage of advisers that have voluntarily left the industry because this Government made it too difficult to do business, compared to those advisers that have been ‘caught’ by this Government’s endless supply of ludicrous legislation is many, many times more. What a disaster for consumers.
There’ll hardly be any financial advisers left to provide personal advise to retail clients soon and those that do stay, will hate what they do because its just too hard now. Thanks Treasurer. Your focus remains fixed on the absolute minority.
Why do I think this is another cost burden that is going to be passed onto advisers and in essence the clients?
Because it is.
Sorry but is FEAR the right answer given the need for good advice and the exodus of talent. Instead of the Financial Executives Accountability Regime, let’s consider SAFE, Senior Accountable Financial Executives or EARTH, Executive Accountability Regime Trying Harder. Anything but FEAR.
Great, more legislation for these muppets to mangle…