Murray inquiry: implications for employers

Financial advisers could be subject to tougher requirements under recommendations from the Murray inquiry into the financial services industry.

A register of advisers is one of the key recommendations in the inquiry’s finalreport, prepared by former Commonwealth Bank managing director David Murray and now with the Federal Government.

Among other things, the report recommends greater protection for small businesses by extending unfair contract term protections to the financial services sector.

It also recommends the government consult on providing additional flexibility for businesses in financial difficulty through amending the external administration regime.

In the area of superannuation, the report recommends there be no restriction on employees selecting superannuation funds – and funds be run by a majority of independent directors.

Murray also recommends superannuation funds should not be able to borrow via limited recourse borrowing arrangements. This will impact upon self-managed superannuation funds, which may want to borrow to acquire property such as family business premises.

The report recommends changes to the way EFTPOS and credit card fees are charged which, if implemented, will lead to lower EFTPOS fees and prevent merchants, such as airlines, from over-surcharging customers.

Sharing customer credit data is encouraged, with the threat that if industry doesn’t participate the government should make sharing of credit data mandatory.

Crowd funding for debt and equity should be facilitated through appropriate “light handed” regulation, the report says.

Federal Treasurer Joe Hockey will respond to the 44 recommendations by June 2015.