The Australian Banking Association (ABA) has declared that the implementation of changes to grandfathered advice commissions should happen this year.
ABA chief executive and former Queensland Labor Premier, Anna Bligh has told a Sydney forum that while some of the recommendations of the Royal Commission will require “extensive consultation and consideration” there are others such as ending grandfathered commissions which can be implemented quickly.
“Without doubt, a number of recommended legislative reforms, such as changes to mortgage broker remuneration, enforceability of Codes and extending [the Bank Executive Accountability Regime] BEAR to product life cycle will require extensive consultation and consideration,” she said.
“Equally, there are many that can and should be implemented as quickly possible,” Bligh said. “An end to grandfathered commissions in financial advice, a nationally consistent farm debt mediation scheme and changes to ongoing advice fees, among others, should all happen this year.”
“Australians should expect that whoever wins the next federal election will have a banking reform bill, with these and other reforms, in the Parliament within their first 100 days of being sworn in. I’d call on both sides to commit to taking this action,” she said.
“This will make for a busy second half in 2019, but the circumstances warrant action and urgency,” Bligh said.