The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry made a number of recommendations concerning the provision of financial products.
On 4 February 2019, the Government released its response to the Royal Commission. The Government is taking action on all 76 recommendations, which includes its commitment to prohibit the hawking of insurance and superannuation products, and to clarify the definition of hawking for a financial product to include selling of a financial product during a meeting, call or other contact initiated to discuss an unrelated financial product.
The Government is today releasing exposure draft legislation for public comment which implements recommendations 3.4 and 4.1 of the Royal Commission:
- Recommendation 3.4 prohibits the hawking of superannuation products.
- Recommendation 4.1 prohibits the hawking of insurance products.
Consistent with the Final Report of the Royal Commission that ‘no financial product should be hawked to retail clients’, the new hawking rules apply to other financial products including managed investment schemes and securities.