The Morrison Government has today passed legislation that will further protect Australian households from hidden fees and unexpected expenses.
The passage of Financial Sector Reform (Hayne Royal Commission Response No. 2) Bill 2020 follows through on the government's commitment to implement the recommendations from the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.
Under the legislation passed today, clients of financial advisers will receive an annual, forward-looking summary of fees and corresponding services, in addition to existing disclosures. Advisers will need to obtain written consent prior to deducting fees.
These changes complement the introduction of a new disclosure obligation that requires financial advisers who are not independent of product providers to provide their clients with a clear and concise written disclaimer.
The legislation will also prohibit the deduction of ongoing advice fees from MySuper products and increase the transparency of fees to members.
These changes are an important step in restoring trust and confidence in Australia's financial system.