{"id":46337,"date":"2019-09-17T14:19:10","date_gmt":"2019-09-17T04:19:10","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=46337"},"modified":"2019-09-18T05:47:39","modified_gmt":"2019-09-17T19:47:39","slug":"asic-grilled-over-due-diligence-on-grandfathered-commissions","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2019\/09\/17\/asic-grilled-over-due-diligence-on-grandfathered-commissions\/","title":{"rendered":"ASIC Grilled Over Due Diligence on Grandfathered Commissions"},"content":{"rendered":"

ASIC has been grilled by the Parliamentary Joint Committee on Corporations and Financial Services over what was implied to be its failure to clearly articulate the complexities – including the human costs – associated with the ending of grandfathered commission payments.<\/p>\n

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PJC member and Coalition MP, Bert van Manen …grilled ASIC last week over due diligence on the ending of grandfathered commissions<\/figcaption><\/figure>\n

The passage of legislation early last week through the House of Representatives to end the payment of grandfathered conflicted remuneration to financial advisers (see Grandfathered Commissions Ban…<\/a>) was followed by a PJC hearing at the end of last week, during which a spotlight was shone on the many and varied issues associated with the ending of grandfathered commissions.<\/p>\n

During the ASIC Oversight hearing before the PJC, ASIC’s Chair, James Shipton<\/strong>, was questioned by PJC Coalition MP, Bert van Manen<\/strong>, on the effective due diligence the regulator undertook before making a recommendation to the Banking Royal Commission in the Round 2 (Financial Advice) hearings in May 2018 that “…ASIC believes that the grandfathering of commissions should cease as soon as reasonably practicable and to the maximum possible extent.”<\/p>\n

During exchanges with Shipton, van Manen, implied:<\/p>\n