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

UPDATE: Bill passed.

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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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.