Explanatory Memorandum(Circulated by authority of the Treasurer, the Hon Josh Frydenberg MP)
Chapter 2 - Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Treasury Laws Amendment (Ending Grandfathered Conflicted Remuneration) Bill 2019
2.1 The Bill is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
2.2 The Bill implements a recommendation of the Final Report of the Royal Commission that grandfathering provisions for conflicted remuneration should be removed as soon as is reasonably practicable.
2.3 It provides for the removal of grandfathering arrangements for conflicted remuneration for financial advice, volume-based shelf-space fees and asset-based fees on borrowed amounts, effective from 1 January 2021.
2.4 It also provides for a scheme, to be made by regulations, under which benefits amounting to conflicted remuneration that would otherwise continue to be given after 1 January 2021 are rebated to affected customers.
Human rights implications
2.5 The Bill does not engage any of the applicable rights and freedoms.
2.6 The Bill is compatible with human rights.