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Bills of the current Parliament

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Financial Sector Reform (Hayne Royal Commission Response) Bill 2020


Type
Government
Originating house
House of Representatives
Status
Assent
Portfolio
Treasury

Summary

Introduced with the Corporations (Fees) Amendment (Hayne Royal Commission Response) Bill 2020, the bill amends the: Corporations Act 2001 and National Consumer Credit Protection Act 2009 to strengthen the existing voluntary code of conduct framework by enabling the Australian Securities and Investments Commission (ASIC) to designate enforceable code provisions in approved codes of conduct which, if breached, may attract civil penalties; and establish a mandatory code of conduct framework for the financial services and consumer credit industry through regulations, with the ability to designate certain provisions of civil penalty provisions; Insurance Contracts Act 1984 to: limit the circumstances in which an insurer can avoid a life insurance contract on the basis of non-fraudulent misrepresentation or non-disclosure by an insured; and replace the duty of disclosure for consumer insurance contracts with a duty to take reasonable care not to make a misrepresentation; Australian Securities and Investments Commission Act 2001 to: implement an industry wide deferred sales model for the sale of add-on insurance products; and formalise ASIC's meeting procedures; Corporations Act 2001 to: provide for the interaction of the deferred sales model with the anti hawking obligations; make claims handling and settling a financial service; and ban the hawking of financial products; Australian Securities and Investments Commission Act 2001 and National Consumer Credit Protection Act 2009 to cap the commission that may be paid in relation to add-on risk products supplied in connection with the sale or long-term lease of a motor vehicle; Insurance Act 1973 to restrict the use of the terms 'insurance' and 'insurer'; Superannuation Industry (Supervision) Act 1993 to: impose a new condition on licences held by a body corporate trustee of a registrable superannuation entity; and amend the roles and responsibilities of superannuation industry regulators; Australian Securities and Investments Commission Act 2001 and Corporations Act 2001 to extend the financial services licensing regime to cover a broader range of activities undertaken by superannuation trustees regulated by the Australian Prudential Regulation Authority (APRA); Corporations Act 2001, National Consumer Credit Protection Act 2009 and National Consumer Credit Protection (Transitional and Consequential Provisions) Act 2009 to: impose new obligations on financial services licensee and credit licensees in relation to reference checking and information sharing, and breach reporting and remediation; and clarify and strengthen the breach reporting regime for financial services licensees and introduce a breach reporting regime for credit licensees; Australian Prudential Regulation Authority Act 1998 and Australian Securities and Investments Commission Act 2001 to require APRA and ASIC to cooperate and share information with each other, including requiring them to notify each other when they reasonably believe there may be material breaches of each other's legislation. Also makes consequential amendments to five Acts.

Progress of bill

For committee reference information, please see the Notes section at the end of this page.

House of Representatives
Introduced and read a first time 12/11/20  
Second reading moved 12/11/20  
Second reading debate 09/12/20  
Second reading agreed to 09/12/20  
Consideration in detail debate 09/12/20  
Third reading agreed to 09/12/20  
     
Senate
Introduced and read a first time 09/12/20  
Second reading moved 09/12/20  
Second reading agreed to 10/12/20  
Third reading agreed to 10/12/20 Amendment details: 1 Opposition agreed to
     
House of Representatives
Consideration of Senate message 10/12/20 Details: House agreed to Senate amendment
     
Finally passed both Houses 10/12/20  
Assent 17/12/20 Act no: 135 - Year: 2020
     

Text of bill

  • First reading

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  • As passed by both Houses

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Explanatory memoranda

  • Explanatory memorandum

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Second reading speeches


Proposed amendments

House of Representatives
  • Non-Government
JONES, Stephen, MP

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  • Non-Government
THISTLETHWAITE, Matt, MP

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Senate
  • Opposition [sheet 1180]
MCALLISTER, Sen Jenny

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  • Opposition [sheet 1179]
MCALLISTER, Sen Jenny

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Schedules of amendments

  • Schedule of the amendment made by the Senate

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Bills Digest



Notes