Here’s a snapshot of key changes coming up (that have been passed or announced) for the rest of 2020 and 2021.
The Government says that by 30 June 2021, legislation for all Financial Service Royal Commission recommendations requiring legislative change will have been introduced into parliament. These changes and other reviews will be implemented in 2021-2022.
Also see ASIC’s timetable of ongoing work.
Royal Commission changes
Consultation and introduction of legislation for first group of Financial Services Royal Commission changes including removal of POS exemptions, deferred sales model for add-on insurance
Prohibition of hawking of insurance and superannuation
New small business insolvency process
Incorporated businesses with liabilities of less than $1 million will be able to keep trading without an administrator while they develop a debt restructuring plan.
Mortgage broker commission changes and best interests duty starts
Payment times reporting
Payment Times Reporting Act commences
Consumer credit changes
changes to the National Credit Act responsible lending obligations
Modern Slavery Act
first statement under the Modern Slavery Act (Cth) due for financial-year-reporting entities
Unfair insurance contracts
Unfair insurance contract prohibition commences
Royal Commission changes
Consultation and introduction of group 2 Financial Services Royal Commission changes including
*Compensation scheme of last resort
*Extension of BEAR to RSE licensees and insurers (FAR)
General Insurance Code of Practice
General Insurance Code of Practice commences
changes to the breach reporting regime
reference checking for mortgage brokers and financial advisers
notify clients of suspected misconduct
Product design and distribution obligations
New product design and distribution obligations commence
Internal Dispute Resolution
New ASIC RG 271 commences
Revised APS 220 Credit Risk Management commences.
*Mandatory credit reporting regime
*Revised Customer Owned Banking Code of Practice
*revised ePayments Code *Directors Identification Numbers (12 June 2022)
*APRA remuneration standard
*Cash payment limits
*Retail payment regulation
*More active supervision and enforcement by regulators
All of these changes will have an impact on your customers as well as affecting your internal systems and processes. Some, like open banking, will have major technological changes.
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Author: David Jacobson
Principal, Bright Corporate Law
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.