Select either Recommendation 2.1 or Recommendation 2.4 below from the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry Final Report to research: 1. Recommendation 2.1 - Annual renewal and payment. The law should be amended to provide that ongoing fee arrangements whenever made): o must be renewed annually by the client; o must record in writing each year the services that the client will be entitled to receive and the total of the fees that are to be charged; and o may neither permit nor require payment of fees from any account held for or on behalf of the client except on the client's express written authority to the entity that conducts that account given at, or immediately after, the latest renewal of the ongoing fee arrangement. 2. Recommendation 2.4 - Grandfathered commissions. Grandfathering provisions for conflicted remuneration should be repealed as soon as is reasonably practicable. Analyse the recommendations contained in the Royal Commission. This should include the following a) Describe the underlying issue brought to light during the Royal Commission that has resulted in the recommendation. (8 marks) b) Provide two relevant examples/ case studies that were highlighted during the Royal Commission relevant to the recommendation. (6 marks) c) How will the recommendation change the way a financial planner operates assuming implementation? (7 marks) d) What is the status of the recommendation i.e. is it now law? If this has been legislated include the name of the legislation and a link to it. (4 marks) Select either Recommendation 2.1 or Recommendation 2.4 below from the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry Final Report to research: 1. Recommendation 2.1 - Annual renewal and payment. The law should be amended to provide that ongoing fee arrangements whenever made): o must be renewed annually by the client; o must record in writing each year the services that the client will be entitled to receive and the total of the fees that are to be charged; and o may neither permit nor require payment of fees from any account held for or on behalf of the client except on the client's express written authority to the entity that conducts that account given at, or immediately after, the latest renewal of the ongoing fee arrangement. 2. Recommendation 2.4 - Grandfathered commissions. Grandfathering provisions for conflicted remuneration should be repealed as soon as is reasonably practicable. Analyse the recommendations contained in the Royal Commission. This should include the following a) Describe the underlying issue brought to light during the Royal Commission that has resulted in the recommendation. (8 marks) b) Provide two relevant examples/ case studies that were highlighted during the Royal Commission relevant to the recommendation. (6 marks) c) How will the recommendation change the way a financial planner operates assuming implementation? (7 marks) d) What is the status of the recommendation i.e. is it now law? If this has been legislated include the name of the legislation and a link to it. (4 marks)
