The Treasury Laws Amendment (Ending Grandfathered Conflicted Remuneration) Bill 2019 was passed by the Senate on 14 October 2019 and now awaits royal assent.
The Bill will implement the Governments’ response to recommendation 2.4 of the Royal Commission Final Report - to end the grandfathering of conflicted remuneration paid to financial advisers by 1 January 2021.
The Bill also enables the regulations to provide for a scheme under which amounts that would otherwise have been paid as conflicted remuneration are rebated to affected customers after 1 January 2021.
ASIC will monitor and report on the extent to which product issuers are acting to end the grandfathering of conflicted remuneration.
Parliament of Australia, Treasury Laws Amendment (Ending Grandfathered Conflicted Remuneration) Bill 2019 and Explanatory Memorandum, 1 August 2019