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Passage of Bill progresses Hayne recommendations

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Passage of the Financial Sector Reform Bill 2020 through Parliament is a “major step forward” in implementing the recommendations of the Hayne royal commission, the Federal Government says.

The legislation will strengthen the unsolicited selling (anti-hawking) provisions, including for superannuation and insurance products, to prevent pressure selling to consumers.

It will also introduce a deferred sales model for add-on insurance products, make the handling and settlement of insurance claims a financial service, and allow provisions in financial services industry codes to be enforceable.

The Insurance Council of Australia (ICA) says it welcomes passage of the Bill but cautions that some “practical implementation issues” remain.

ICA says the legislation gives insurers “the certainty needed to put in place new processes and systems to bring the benefits of these reforms to consumers”.

“The Insurance Council and its members now look forward to working with Commonwealth Treasury, ASIC, and other groups such as consumer advocates to bring these reforms to life,” CEO Andrew Hall said.

“There are practical implementation issues that we are keen to see resolved so the legislation can maximise consumer outcomes as effectively and quickly as possible.”