COVID-19 and Royal Commission implementation
The Government has deferred the implementation of the Royal Commission recommendations for six months because of the significant impacts of the coronavirus. While a revised Implementation Roadmap has not been released, the Government has confirmed the following changes:
- measures that were to be introduced into the Parliament by 30 June 2020, will now be introduced by December 2020
- measures originally scheduled for introduction by December 2020 will now be introduced by 30 June 2021
- the commencement dates contained in Royal Commission related exposure draft legislation issued prior to the coronavirus pandemic will be extended by an additional six months – meaning draft legislation scheduled to commence from 1 July 2021 will now commence from 1 January 2021.
The deferral does not apply to recommendations that have already been legislated. The ban on Grandfathered Commissions will proceed from 1 January 2021.
On 31 January 2020, the Government released draft legislation to implement 22 recommendations from the Royal Commission. These changes were subject to a short consultation period with the government planning to progress them through Parliament by 30 June 2020.
The FPA provided submissions to the consultation process on the following changes that will affect financial planning practices:
Recommendation 2.1 - Ongoing Fee Arrangements (draft legislation requirements
Recommendation 2.2 - Disclosure of Lack of Independence (draft legislation requirements
Recommendations 1.6, 2.7, 2.8, 2.9, 7.2: Reference checking and information sharing, breach reporting and remediation (draft legislation requirements)
Recommendation 3.2 and 3.3 – No advice fees from MySuper and deduction of advice fees from choice super (draft legislation requirements)
Read the Royal Commission Final Report (February 2019)
Read the Government Response (February 2019)
Read the FPA Royal Commission wrap-up (February 2019)
We are always keen to hear your valuable feedback and suggestions. Please let us know if there are any issues or concerns that affect you.