It’s 12 months today since the Banking Royal Commission findings were tabled in the Federal Parliament.
The Coalition Government promised to implement all the recommendations within 12 months but has so far introduced legislation for 25-50%.
The financial services sector will certainly not get away with ‘fees for no services’ and other rorts any time soon and there appears to be a new regard for the interests of customers but it remains to be seen whether the sector returns to old, more profitable ways. Much will depend on the Government’s resolve.
- The Government appears to be balking at banning commissions for mortgage brokers
- No progress has been made to stop selling ‘loans at the till’
- The industry is likely to push back hard on extending the Executive Accountability Regime to the financial services industry more broadly
- Westpac’s failure to stop allowing paedophiles to send money to the Phillipines to pay for child exploitation must be taken seriously by former CFO and now CEO Acting CEO, Peter King.
- The NAB faces a lawsuit for its delay in repaying $6.3bn in advisor fees to 330,000 superannuation customers
What else is required?
- The Government should either impose a ban on lobbying by the finance sector until the remaining reforms are in place or fully disclose the nature of all interactions between government and the industry on these reforms
- The Government should ban donations to political parties from the finance sector, much as the NSW Government did for the property development industry
- We also need to see evidence that watchdog agencies have the resources and the teeth to properly oversight the sector. Like other departments, the decades of ‘1% efficiency dividends’ have had a crippling effect on these agencies and should be abandoned altogether.