Bill Shorten (Maribyrnong, Australian Labor Party, Minister for Financial Services and Superannuation) Share this | Hansard source

Amendment (3) responds to concerns from industry that the carve-out from the ban on conflicted remuneration for execution-only services does not work as intended. The carve-out is intended to apply where there is no advice provided to the client in relation to a particular sale of a product, but the current bill notes that to use the carve-out no advice should have been provided to the client in relation to the product or class of product. The amendment requires that in order for the carve-out to apply, no advice should have been given to the client in the preceding 12 months—a time frame which is more practical for industry to monitor. Amendments (4) to (6) give proper effect to the grandfathering provisions of the bill in relation to the bans on conflicted remuneration. These ensure that the regulation-making power to prescribe other circumstances in which the conflicted remuneration division applies is effective. The amendments also clarify that the conflicted remuneration division does not apply to the extent that the operation of the division would result in an unjust acquisition of property within the meaning of paragraph 51(xxxi) of the Constitution.

See this speech in context