Royal Bank Investigation Commission Final Report Released – Live Policy | Global

The government is responding to Commissioner Hayne's 76 recommendations.

First, with respect to improving consumer protection, we are taking the following steps: With respect to mortgage brokers, we are putting in place a best interest obligation, prohibiting trailing commissions and bonuses based on the volume of new loans as of July 1, 2020.

With regard to the transition to a pay per borrower structure, the consequences will be examined in three years, taking into account that the Productivity Commission, the Murray and Sedgwick examine all the problems raised with regard to the effects of a loan. competition. switch to a borrower payer model.

We are terminating the acquired rights for conflicting compensation for financial advisors, effective January 1, 2021.

With regard to the retirement pension, we will ensure that the members of the fund have only one account. For new members entering the system, a recommendation that reflects the Productivity Commission's report on the retirement pension.

We prohibit the deduction of MySuper account advisory fees. Hawking for the pension and insurance will be prohibited.

In anticipation of some of the most troubling stories brought forward by the royal commission, vulnerable people would have been sold on an unsolicited basis, which they would not need.

Changes will also be made to the sale of complementary insurance, so that their sale is separated by a period of time from the sale of the original product.

For example, nowadays, a mobile phone is sold to one person, but at the same time a basic insurance for a screen that costs more than replacing the screen itself.

There will also be major changes in the way banks deal with distressed farm loans. This will include a new national system for agricultural debt mediation.

An obligation for banks not to charge default interest on agricultural loans in case of drought or national disaster. The value of agricultural land will need to be determined independently from the lending process.

Banks will have to make sure that distressed farm loans are managed by people with experience in agriculture. And receivers should only be named as a last resort.