Treasury has released for consultation exposure draft Treasury Laws Amendment (Ending Grandfathered Conflicted Remuneration) Regulations 2019 complementing the Treasury Laws Amendment (Ending Grandfathered Conflicted Remuneration) Bill 2019 (Exposure Draft Bill) which removes the grandfathering arrangements for conflicted remuneration and other banned remuneration from 1 January 2021.  Background.

The Bill enables regulations to be made to provide for the pass-through to customers of the benefits of any previously grandfathered conflicted remuneration remaining in contracts after 1 January 2021.

The Draft Regulations provide details on how benefits must be passed through to the customer and also impose recordkeeping obligations on persons required to pass through benefits.

The Government has also issued a Ministerial Direction, requiring that ASIC undertake an investigation to monitor and report on industry behaviour in the period 1 July 2019 to 1 January 2021.