Summary

Introduced with the Corporations (Fees) Amendment (Hayne Royal Commission Response) Bill 2020, the bill amends the:

and to: strengthen the existing voluntary code of conduct framework by enabling the Australian Securities and Investments Commission (ASIC) to designate enforceable code provisions in approved codes of conduct which, if breached, may attract civil penalties; and establish a mandatory code of conduct framework for the financial services and consumer credit industry through regulations, with the ability to designate certain provisions of civil penalty provisions; to: limit the circumstances in which an insurer can avoid a life insurance contract on the basis of non-fraudulent misrepresentation or non-disclosure by an insured; and replace the duty of disclosure for consumer insurance contracts with a duty to take reasonable care not to make a misrepresentation; to: implement an industry wide deferred sales model for the sale of add-on insurance products; and formalise ASIC's meeting procedures; to: provide for the interaction of the deferred sales model with the anti hawking obligations; make claims handling and settling a financial service; and ban the hawking of financial products; and to cap the commission that may be paid in relation to add-on risk products supplied in connection with the sale or long-term lease of a motor vehicle; to restrict the use of the terms 'insurance' and 'insurer'; to: impose a new condition on licences held by a body corporate trustee of a registrable superannuation entity; and amend the roles and responsibilities of superannuation industry regulators; and to extend the financial services licensing regime to cover a broader range of activities undertaken by superannuation trustees regulated by the Australian Prudential Regulation Authority (APRA); , and to: impose new obligations on financial services licensee and credit licensees in relation to reference checking and information sharing, and breach reporting and remediation; and clarify and strengthen the breach reporting regime for financial services licensees and introduce a breach reporting regime for credit licensees; and and to require APRA and ASIC to cooperate and share information with each other, including requiring them to notify each other when they reasonably believe there may be material breaches of each other's legislation. Also makes consequential amendments to five Acts.