CANBERRA, AAP – The final round of reforms to the financial sector following the banking royal commission have been introduced to federal parliament.
Four bills were brought to parliament on Thursday, which would see six recommendations from the Hayne royal commission implemented.
Among those was the financial accountability regime be extended to all financial bodies regulated by the Australian Prudential Regulation Authority.
The measures would see all directors and senior executives at banks, insurance and superannuation companies be held responsible for their actions.
The regime will be applied to the banking sector by July 1 next year at the latest, while it will be applied to super and insurance companies by July 1, 2023.
The new legislation will also establish a compensation scheme of last resort.
Under the scheme, up to $150,000 in compensation will be able to be provided to customers who have been told they were eligible for compensation by the Australian Financial Complaints Authority due to misconduct, but have yet to have been paid the amount.
Treasurer Josh Frydenberg said the federal government would fund the scheme’s set-up and contribute costs in its first year of operation.
Claims would be able to be paid from July 1 next year.
After that, the scheme will be funded by levies imposed on financial institutions.
“The bill underscores the government’s commitment to take action in response to the royal commission, which uncovered too many instances of misconduct,” cabinet minister Alan Tudge told parliament.
“The regime will ensure where misconduct occurs, appropriate consequences will follow.”
Mr Frydenberg said the government was continuing consultations on the new legislation as it went through parliament.
“The government has now met the legislative commitments it outlined in its road map for the implementation of the Hayne royal commission,” he said in a statement.
“Remaining recommendations, which include conducting several reviews in 2022, will be implemented consistent with our prior commitments.”