Financial Services Regulation Planning 2021 update

Royal Assent has now been given to three significant bills passed in the last week of Parliament:

Here is an updated timetable (based on bills passed up to 11 December 2020 and government announcements).

January 1, 2021

Prohibition of hawking of insurance and superannuation

changes commence

January 1, 2021
January 1, 2021

Mortgage brokers

commission changes and best interests duty starts

January 1, 2021
January 1, 2021

Insolvency

New corporate regime starts

January 1, 2021
January 1, 2021

Payment Times

Reporting Act commences

January 1, 2021
January 1, 2021

Ban on grandfathered conflicted remuneration

commences

January 1, 2021
January 1, 2021

Industry Code provisions

Become enforceable

January 1, 2021
January 1, 2021

Insurance claims handling and settling

Licensing starts

January 1, 2021
January 1, 2021

Regulation of insurance terms

commences

January 1, 2021
January 1, 2021

Cap on commission

add-on insurance for motor vehicle sales

January 1, 2021
January 1, 2021

Bankruptcy threshold

increases to $10,000

January 1, 2021
March 1, 2021

Consumer Credit

changes to responsible lending obligations

March 1, 2021
March 31, 2021

Modern Slavery

first statement due for financial year reporting entities

March 31, 2021
April 1, 2021

Credit

new APRA APS 220 credit risk management

April 1, 2021
April 1, 2021

Debt management firms

credit licence required

April 1, 2021
April 5, 2021

Unfair insurance contracts

changes commence

April 5, 2021
June 18, 2021

AML amendments

commence (customer ID Procedures, tipping off, correspondent banking)

June 18, 2021
June 30, 2021

Hayne Royal Commission changes

* financial advice regulation changes

*introduction of further changes including compensation scheme of last resort and extension of BEAR to RSE licensees and insurers (FAR)

June 30, 2021
July 1, 2021

General Insurance

Code of Practice changes commence

July 1, 2021
July 1, 2021

Consumer credit

SACC and consumer lease changes

July 1, 2021
July 1, 2021

Consumer Credit

best interest duty for credit assistance providers

July 1, 2021
July 1, 2021

RSE licensees

duties obligation commences

July 1, 2021
October 1, 2021

Breach reporting

obligations change

October 1, 2021
October 1, 2021

AFS and Credit Licensees

reference checking for mortgage brokers and financial advisers

October 1, 2021
October 1, 2021

AFS and Credit Licensees

obligation to notify clients of suspected misconduct

October 1, 2021
October 5, 2021

Product Design and distribution obligations

DDO commences

October 5, 2021
October 5, 2021

IDR

ASIC RG 271 internal dispute resolution changes commence

October 5, 2021
October 5, 2021

Insurance

deferred sales model for add-on insurance commences

October 5, 2021
October 5, 2021

Marketing

no hawking of financial products

October 5, 2021
December 31, 2021

Monitor

* virtual meetings and electronic document execution
* mandatory credit reporting
* revised Customer Owned Banking Code of Practice
* revised ePayments Code
* Directors Identification Numbers (12 June 2022)
* APRA remuneration standard CPS 511
(1 January 2023)
* Retail payments regulation
* Privacy Act review

December 31, 2021

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David Jacobson

Author: David Jacobson
Principal, Bright Corporate Law
Email:
About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.

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