DAVID KOCH:
Well, it’s been more than six months since the Final Report into the Banking Royal Commission was handed down. Today, the Government will outline its plan to implement most of the 76 recommendations. Treasurer Josh Frydenberg is in Melbourne this morning and joins us now. Treasurer, good morning to you.
JOSH FRYDENBERG:
Good morning.
DAVID KOCH:
A lot of people are saying why has it taken this long to act on the recommendations? They were handed down back in February.
JOSH FRYDENBERG:
Well, we’ve actually implemented fifteen of the Government’s commitments in response to the Royal Commission, but as you know, there are many more still to implement. So, we’ve set out a very ambitious timetable. This is the most comprehensive set of reforms to the finance sector in three decades, and we will be implementing them in record time. Kochie, you may remember when the Future of Financial Advice Reforms were implemented a few years ago it was nearly two years between the receipt of the committee’s report, and actual legislation. Whereas, we have already passed legislation and we have more to pass in the coming months.
DAVID KOCH:
Yeah, of all these recommendations you’re going to implement, for you, what are the most, a couple of the most significant ones?
JOSH FRYDENBERG:
Well, obviously getting our regulators to be better performing and to holding those who breach the law to account, because Commissioner Hayne had said that most of the offences and the misconduct that he identified was actually in breach of existing law, so that’s one part of it. A second is in terms of insurance, ensuring that the public don’t face unfair contract terms, I think that’s important.
A best interest duty for mortgage brokers will also be important and we’ll be introducing that legislation before the end of this year. Around sixty per cent of mortgages are written by mortgage brokers and they play a critical part in our economy and in our community and we want obviously for them to be acting in the best interests of their customers.
DAVID KOCH:
Yeah, speaking of those regulators, ASIC has come out today saying it’s in the final throes of actually drawing up charges against the ‘Big Six’, the ‘Big Four’ banks and on AMP and Macquarie as a result. So, the regulators seem to really have them in their sights and going to do something about it.
JOSH FRYDENBERG:
Well, Commissioner Hayne did make twenty referrals to the regulators involving fourteen different entities, and the regulators are working through those cases as well as bringing other cases forward. This is very important because those who break the law should be held to account, and in doing so, we can help restore the trust and the confidence of the Australian people in the financial services sector, bearing in mind that the financial services sector is the single largest sector in the Australian economy. More than fifteen million Australians have a superannuation account, more than three million Australians have a household mortgage, and millions of Australians see a financial advisor every year.
DAVID KOCH:
Yep, absolutely. Well it’s great to see you’re adopting most of those recommendations. Appreciate your time.