Explanatory Memorandum(Circulated by authority of the Treasurer, the Hon Josh Frydenberg MP)
General outline and financial impact
This Bill amends the Act to end the grandfathering regime that currently applies in relation to the conflicted remuneration provisions of the Act.
Date of effect: 1 January 2021
Proposal announced: This measure was announced in the Government's response to the Royal Commission on 4 February 2019 (Recommendation 2.4).
Financial impact: Nil.
Human rights implications: This bill does not raise any human rights issues. See Statement of Compatibility with Human Rights - Chapter 2, paragraphs 2.1 to 2.6.
Compliance cost impact: It is estimated that the increase in annual compliance costs for the industry as a whole will amount to $9 million.
The Treasury has undertaken a process equivalent to a Regulation Impact Statement through the Royal Commission. The link to the Royal Commission Final Report can be found here: