{"id":46063,"date":"2019-08-22T14:39:03","date_gmt":"2019-08-22T04:39:03","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=46063"},"modified":"2019-08-28T07:24:48","modified_gmt":"2019-08-27T21:24:48","slug":"asic-reviews-industry-transition-towards-ending-grandfathered-commissions","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2019\/08\/22\/asic-reviews-industry-transition-towards-ending-grandfathered-commissions\/","title":{"rendered":"ASIC to Review Industry Action on Grandfathered Commissions"},"content":{"rendered":"<p class=\"p2\"><span class=\"s1\">ASIC has announced it will investigate how the industry is progressing in the transition away from grandfathered commissions for advisers.<\/span><\/p>\n<p><!--more--><\/p>\n<p class=\"p2\"><span class=\"s1\">The investigation, directed by the Treasurer following the Government\u2019s commitment to a 1 January 2021 end-date, will review the steps taken by industry participants from 1 July 2019 until the 2021 deadline to end the practice.\u00a0<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">The Government introduced legislation on 1 August 2019 to ban grandfathered commissions paid to financial advisers (see: <a href=\"https:\/\/riskinfo.com.au\/news\/2019\/07\/30\/government-confirms-grandfathering-ban-date\/\" target=\"_blank\" rel=\"noopener\">Government Confirms Grandfathering Ban Date\u2026<\/a>), and t<\/span><span class=\"s1\">he industry was quick to voice its concerns on the announcement (see: <a href=\"https:\/\/riskinfo.com.au\/news\/2019\/08\/05\/deep-concerns-over-removal-of-grandfathered-commissions-afa\/\" target=\"_blank\" rel=\"noopener\">Deep Concerns Over Removal of Grandfathered Commissions&#8230;<\/a> and <a href=\"https:\/\/riskinfo.com.au\/news\/2019\/08\/02\/fpa-warning-on-grandfathered-commission-ban\/\" target=\"_blank\" rel=\"noopener\">FPA Warning on Grandfathered Commission Ban&#8230;<\/a>) <\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">ASIC stated it will investigate any impediments to the transition and the extent to which benefits are being passed on to affected clients.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">It will conduct both quantitative and qualitative reviews. <\/span><span class=\"s1\">The quantitative study will involve a survey of entities known to pay grandfathered conflicted remuneration to Australian financial services (AFS) licensees or their representatives and require them under notice to provide data:<\/span><\/p>\n<ul>\n<li class=\"p2\"><span class=\"s1\">Initially for a 12-month period (from 1 July 2018 to 30 June 2019); and<\/span><\/li>\n<li class=\"p2\"><span class=\"s1\">Thereafter on a quarterly basis for the review period (for example, reporting for the period from 1 July to 30 September 2019 will be in October 2019)<\/span><\/li>\n<\/ul>\n<p class=\"p2\"><span class=\"s1\">The first notice to entities will be issued on the 21 August and they will be required to provide their responses via a web portal. <\/span><\/p>\n<p><span class=\"s1\">The qualitative review will include a smaller sample of entities that pay and receive grandfathered remuneration. This will involve more detailed engagement and analysis during the review period.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">ASIC stated it will analyse the information from both reviews and report to the Treasurer by 30 June 2021 and the report will be released publicly. <\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">The regulator expects to provide an update on its investigation to the Treasurer and industry as appropriate during the review period.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>ASIC has announced it will investigate how the industry is progressing in the transition away from grandfathered commissions for advisers.<\/p>\n","protected":false},"author":20,"featured_media":46116,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8,270],"tags":[4247],"class_list":["post-46063","post","type-post","status-publish","format-standard","has-post-thumbnail","category-compliance-regulation","category-remuneration","tag-feature"],"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/46063","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/users\/20"}],"replies":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/comments?post=46063"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/46063\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media\/46116"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=46063"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=46063"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=46063"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}