A key parliamentary committee has rejected legislation to end vertical integration in the Australian financial services industry.
The Senate Economics Legislation Committee within the Australian parliament has today knocked back the proposed legislation, which could effectively have outlawed cross-selling.
Committee chair Jane Hume says current legislative protections are “sufficient enough to ensure money held in bank deposits is safe.”
This comes despite the troubles the industry has faced in the wake of various findings within the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services that has seen Australian’s four largest banks – also the four dominant financial advice providers – exit the market this year.
Financial regulator the Australian Securities and Investments Commission has today also called for a consultation on lifting standards and transparency of complaints handling.
This is set to include new mandatory data reporting and a tightening of standards for its Internal Dispute Resolution arrangements.
These currently allow firms to investigate, resolve of redress problems before consumers can escalate their complaints directly to the regulator.
The FCA is also continuing its work with ASIC on strengthening cooperation between financial services in the UK and Australia including the exchange over information on cross-border activities of advice firms.