Jo Dawson - April 2018
The Royal Commission into Banking, Superannuation and Financial Services – what is it all about?
On 14 December 2017 the Governor General announced the establishment of a Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.
The Honourable Kenneth Hayne AC QC has been appointed as the Commissioner to report to the Government, and is required to submit an interim report to the Government no later than 30 September 2018, and a final report by 1 February 2019.
The cost of the Royal Commission to the government is expected to reach $75m.
The Terms of Reference of the Royal Commission are extensive and include, but are not limited to:
- The misconduct of organisations.
- Whether retirement savings are used in the best interest of members and as such meet community expectations.
- Whether such actions are the result of organisational cultural, governance or recruitment and remuneration practices.
- The effectiveness of redress schemes.
To date the Commission has requested information from a number of organisation, being large banks, superannuation funds and insurers. We, your bank, have received no such request. The first of the public hearings was on 13 March and the commission focused on the sale of fraudulent mortgages, car financing and excess credit card lending.
Future hearings may look at payments to mortgage brokers, and the payments by industry superannuation funds to unions.
A lot of information will be gathered and assessed in a very short period of time.
At this time your bank is watching, listening and learning, as the findings will no doubt involve some new regulatory requirements that will impact all banks, but we do not anticipate that we will be called upon to provide any data or information on our practices.