Submission: Senate Inquiry into PIP/DADO Bill
We continue to strongly support the introduction of the Design and Distribution Obligations (DADOs) and Product Intervention Powers (PIP) for the reasons outlined in our previous submissions. As noted by the Australian Securities and Investments Commission (ASIC), these reforms represent a ‘fundamental shift away from relying predominantly on disclosure to drive good consumer outcomes, and are central to realising the vision of the Financial System Inquiry (FSI) of promoting consumer trust in the system and fair treatment of consumers.’
While we support the reforms, we are concerned that the legislation is significantly narrower in scope than the regime that was proposed by the FSI. We consider that significant amendments are required to ensure the legislation meets the needs of Australian consumers. Ensuring the legislation is fit for purpose is more pertinent than ever in an environment of declining confidence in financial services providers and the extensive misconduct being revealed by the Royal Commission.
181015 PIP DADO - Senate Economics Cte