Treasurer Josh Frydenberg has indicated that the federal government’s crackdown on conflicted remuneration in the financial planning sector will be harsher than the measures recommended by the Hayne royal commission. Rather than simply banning grandfathered trailing commissions, a bill to be introduced in coming days will also include a scheme to rebate clients for any forgone remuneration after the ban takes effect in 2021. But superannuation industry executives have expressed some reservations about the rebate scheme. From The Australian:
The Treasurer yesterday flagged he would introduce legislation this week banning grandfathered conflicted remuneration paid to advisers.
Mr Frydenberg said the government would be going “further” than Mr Hayne’s recommendations by setting up a mechanism to rebate clients for any forgone remuneration when the payments are banned at the start of 2021…
