While the government will receive the much-anticipated final report on Friday, 1 February, the financial services industry and the Australian public will have to wait until Monday at 4:10pm to see the final result of an inquiry that was established in December 2017 and has received more than 10,000 submissions.
“The Australian government will receive the final report of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry on Friday, 1 February 2019,” said Treasurer Josh Frydenberg.
“The final report will be publicly released at 4.10pm on Monday, 4 February 2019, following the close of trading on the ASX.”
The Treasurer has previously shared his concerns that the release of the report could impact the share market, stating that the public release of the report and its recommendations would “take into account” its potential market ramifications.
“The government recognises the potential market sensitivity of the final report and will take this into account in considering the timing of its release.”
Meanwhile, shadow treasurer Chris Bowen wrote to the Treasurer last week, urging him to release the royal commission’s final report once the government receives it.
“It is in the national interest for the Australian people and victims of banking scandals to be able to access the Hayne banking royal commission’s final report and form their own views, at the earliest opportunity, and that means on Friday, 1 February,” Mr Bowen said.
“I have written to the Treasurer requesting the release of the final report and related documents of the banking royal commission as soon as practicable after it is received by the government.”
He continued: “The Liberal Party has no excuses not to release the final report of the Hayne royal commission when they receive it on 1 February.
“Josh Frydenberg released the royal commission’s interim report on the day they received it – and that was appropriate,” he noted.
“Refusing to release the royal commission’s final report immediately would unnecessarily politicise the handling of the report and give rise to potential material market risks around leaks of all or part of the report,” the shadow treasurer added.
If the Govt change the legislation to ban grandfathered commission, it will be a forced acquisition of existing property (either tangible OR intangible) without consideration.
Unlike FOFA that placed a line in the sand and ceased commission payments for new business going forward, a change in legislation is taking away or acquiring existing property retrospectively for no payment.
It must therefore be considered that every effected adviser is compensated fairly for the loss of property that has been built over many years and was not previously acquired through the FOFA process.
You’re getting paid for nothing. This isn’t your property it’s someone else’s money.
Clad you mentioned “property” – explain how that sector earns it’s fees?
One off commission on the sale of the house. No trailing commissions……and your point is?
Clearly you are not involved in the Industry (but sound like a regulator) and do not have never had to run a business with your own money. If “nothing” is what you believe is provided, are you offering to provide what we do for no cost? No Government money here mate so how will you do it?
I apologise if my comment seemed aggressive I wrote it very quickly.
I do actually run my own practice and obviously this is just my opinion, however this is how I look at it.
Would it be appropriate for a doctor to “grandfather” a drug he knew didn’t work or knew was in some way a detriment to the patient?
Then this drug paid him a royalty for it as well to not move away from it but keep using it.
We’re “doctors” of finance and you shouldn’t be “prescribing” a solution to someone when you’re clearly motivated to keep it for personal gain.
Be honest, do you think if I had an hour with any of your clients in these grandfathered products that I couldn’t find them a better priced and featured solution?
I understand you’re used to the “old ways” but let’s all band together and clean up the industry really make ourselves the professionals we are!
Commissions paid from super funds in the old days were for service to help customers as they needed back then you didn’t have easy access to super funds and all the statement were sent directly from the planners office any paperwork from the clients were completed by the planner not the companies directly it is literally the same thing as intra fund advice for industry funds happening right now in 2019 at the industry funds. https://financialservices.royalcommission.gov.au/publications/Documents/Professor-pamela-hanrahan-background-paper-25.pdf
Like FASEA, the RC is a deliberate and calculated culling exercise…there is no doubt.
It is out to destroy.
The strong form test for the Efficient Market Hypothesis would say that the market has already priced in this private information.
Who said I wouldn’t learn anything from more education.
EMF is horribly flawed: Plenty more downside for the biggest rubbish company affected which unfortunately is very widely held. Still got tons of useless “Execs” on big money (who all must go and be paid out) and any BOLR liabilities which may be triggered. Other examples of why EMF is not a good theory;
Babcock & Brown,
Basis Capital,
Davnet and all the late 90’s techs, and
All the crypo rubbish
…anyone else?
This is very sensible by Frydenberg. It allows the government to formulate their response over the weekend based on the facts of the report, then get on the front foot as soon as it is released to the media.
If the media got it earlier they would distort and misrepresent and sensationalise the content just as they have throughout the whole RC. The government would be backed into a corner and forced to make kneejerk responses to media hysteria. Such responses are far less likely to be in the best interests of consumers.
Storm in a tea cup
so the report must be extremely damning…
How sensible of the Minister to take the time to actually read the report over the weekend to get the sense of the recommendations and to make a considered response. Shows he takes this seriously and not beholden to the impending slavering media headlines shrieking for the most sensational by-line. Nice to see Chris Bowen opting for a common sense approach to implementation without first seeing the content don’t you think?
Liberal vs Labor in a nutshell.
Bowen wrote requesting the release ” as soon as practicable “….so he will get it when the Govt believe it is practicable.
It’s pretty simple isn’t it….Chris Bowen isn’t in power (although he may believe in his own mind that he is).
And then there is Tuesday for the ASX……
Is it really delayed?
The process is that it has to be given to the Governor-General, then sent to Parliament for its formal sign-off and then made publically available. Yes, that could happen on 1 Feb but given the interim report ran well past 700 pages do you think the Federal Government would release a final report that will run just as long without reading it first! Would that even be responsible if there was market sensitive information within it?
Just because Bowen wants it, and it happened with the interim report, does not mean the Government is beholden to the Royal Commission’s publishing timetable.
The RC into Adviser Remuneration*….
i wish I could upvote this comment twice.
An RC into Adviser Rem and only one adviser was put on the stand.
Guys use a cost to service calculator and have that save ready to go. When you give advice it is for the advice. It doesn’t matter if the super fund Australian super to MTAA rollover recommendation only saves them $200 (just an example not sure if that is right figures). You are paid to give advice. Just like when I walk into my accountant they charge 300 for a simple tax return it doesn’t matter if they get me a tax refund or a tax bill I am charged for the service.
This is a stupid reaction by our government. Any market jitters are already in the market…but may now be made worse because many will consider the government fearful of the RC report’s disclosures, recommendations and implications. Bowen is right to call for immediate, impartial release.
Chris Bowen….what a crock of hot air.
He is simply clawing for political points in a lead up to an election.
For him to have recently stated that he would implement all of the recommendations following it’s release without having first read or considered the short or long term advantages and/or disadvantages of doing so, clearly defines the grab n’ go mentality this man has.
Anything that may appear to be or sold to be beneficial to his voters, Chris Bowen will just tick a box.
How quickly would he walk back that comment if there was a recommendation that disadvantaged union super funds.
About 2.5 seconds.
So long…. 🙂