Hayne Royal Commission Response Bill introduced

The Government has introduced the Financial Sector Reform (Hayne Royal Commission Response) Bill 2020 into the House of Representatives. Background.

The Bill deals with numerous matters arising from the Royal Commission Final Report including:

  • Enforceable code provisions (commences on the later of the day after Royal Assent and 1 January 2021);
  • Insurer avoidance of life insurance contracts, and duty to take reasonable care not to make a misrepresentation (applies to any life insurance contract that is entered into from the later of Royal Assent and 1 January 2021). The provisions about misrepresentations in consumer insurance contracts applies to consumer insurance contracts that are entered into on or after 5 October 2021;
  • Deferred sales model for add-on insurance (commences after the hawking changes which commence on the later of the day after Royal Assent and 5 October 2021);
  • Caps on certain insurance commissions (commences on the later of the day after Royal Assent and 1 January 2021);
  • Hawking of financial products (commences on the later of the day after Royal Assent and 5 October 2021);
  • Use of terms “insurance” and “insurer” (commences on the later of the day after Royal Assent and 1 January 2021);
  • Claims handling and settling financial services (commences on the later of the day after Royal Assent and 1 January 2021);
  • Trustees of registrable superannuation entities should have no other duty (commences on the later of the day after Royal Assent and 1 July 2021);
  • Adjustment of APRA and ASIC’s roles in superannuation (commences on the later of the day after Royal Assent and 1 January 2021);
  • Reference Checking and Information Sharing Protocol (applies from 1 October 2021);
  • Breach reporting and remediation (apply from 1 October 2021);
  • Investigating and remediating misconduct (apply from 1 October 2021);
  • Statutory obligation to cooperate (commences on the later of the day after Royal Assent and 1 January 2021).

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David Jacobson

Author: David Jacobson
Principal, Bright Corporate Law
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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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