Here's how the Turnbull government is going to shake up the financial sector

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The government today backed most of the recommendations of the Financial System Inquiry.

This is what it means:

Card surcharging

Merchants will be banned from imposing unfair card surcharges greater than the cost to them of accepting payment by card.

The ACCC (Australian Competition and Consumer Commission) will be responsible for enforcing the new surcharging regulations to ensure consumers are not overcharged.

Superannuation

A number of measures to improve the level of competition, efficiency and transparency in the superannuation system. The idea is to improve after-fee returns for fund members.

The Productivity Commission will develop criteria and then assess how efficient and competitive the superannuation system is and develop alternative models for allocating default fund members to products.

Most people don’t make an active choice of funds, they just drop automatically into a default fund. This means they don’t necessarily get the fund which is right for the,

Innovation

The government is working on draft legislation to allow crowd-sourced equity funding and hopes to implement this before the end of 2015.

Financial advisers

New measures to ensure that people get professional and fair treatment from advisers and financial product and service providers.

This idea is to raise professional, ethical and education standards for financial advisers. They will now be required to have a degree, pass an exam, undertake continuous professional development, subscribe to a code of ethics and do a professional year before they can advise clients.

Banks

The Government endorsed APRA and the steps it is taking on capital requirements to ensure the banks are strong and safe.

Financial regulators

Strengthen the accountability and capabilities of APRA, ASIC and the Payments System Board.

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