The federal government has announced a six-month deferral of royal commission commitments for unlegislated commitments.
The Treasury has announced a six-month deferral to the implementation of commitments associated with the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, as a result of the significant impacts of the coronavirus.*
The move comes as ASIC also announced a deferral of the Best Interests Duty obligations.
The government has said that “commencement dates contained in royal commission-related exposure draft legislation issued prior to the coronavirus pandemic will also extend by an additional six months”.
The delay aims to “enable the financial services industry to focus their efforts on planning for the recovery and supporting their customers and their staff during this unprecedented time”, according to Treasury.
Under the updated timetable, those measures that the government had indicated would be introduced into the Parliament by 30 June 2020 will now be introduced by December 2020.
Similarly, those measures originally scheduled for introduction by December 2020 will now be introduced by 30 June 2021.
“This announcement today balances the need to implement the recommendations of the royal commission with the need to ensure our financial institutions are in a position to devote their resources to responding to the significant challenges posed by the coronavirus,” the Treasury said.
“The changes will also provide certainty and clarity to all stakeholders about the government’s commitment to implementing the recommendations arising out of the royal commission.”
*This story was updated on 8th May to reflect changes announced by ASIC.
Annie Kane is the editor of The Adviser and Mortgage Business.
As well as writing about the Australian broking industry, the mortgage market, financial regulation, fintechs and the wider lending landscape – Annie is also the host of the Elite Broker and In Focus podcasts and The Adviser Live webcasts.
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