Release of the Royal Commission’s recommendations
The final report for the Royal Commission into the Banking, Superannuation and Financial Services Industry was released publicly last week.
The report, by Commissioner Kenneth Hayne, made a number of recommendations in relation to the superannuation industry. Some of those recommendations include:
- the prohibition of superannuation trustees assuming any other role or office
- the ‘stapling’ of individuals to a single default account
- a prohibition on deducting advice fees from MySuper accounts, and limits on the deduction of advice fees from choice accounts
- civil penalty offences for breaches of the trustees’ and directors’ covenants and certain obligations in relation to MySuper
- the unsolicited offer or sale of superannuation products being prohibited, except under specific circumstances
- the establishment of a compensation scheme of last resort.
The report also recommended that 24 cases of misconduct by many of the major banks be referred to the financial regulators for consideration of civil or criminal action.
In addition, Hayne has recommended some significant changes to prevent banks from charging fees for no service.
The Federal Government and the Labor Party have both said they intend to support and implement all the recommendations in Commissioner Hayne’s report.