Royal commissioner makes 76 recommendations to improve the financial sector
Australia's Royal Banking Commission has made 76 recommendations to improve the Australian financial sector in its final report.
The Australian government has agreed to act on all 76 recommendations, with Treasurer Josh Frydenberg addressing the media on Monday, calling for an end to financial misconduct.
Royal commissioner Kenneth Hayne also advised that remuneration structures across the industry, that are used to reward bank staff members and the like, be overhauled to remove systemic conflicts of interest.
Treasurer Josh Frydenberg said, the government will work with its regulators to ensure they are properly resourced.
'The government accepts commissioner Hayne’s considerations,' Mr Frydenberg said.
The government will also compensate those affected by financial misconduct. ‘This will see almost 300 consumers finally see re-compensation,’ Frydenberg said.
The final report found that the industry's problems were aggravated by corporations refusing to accept responsibility, leading to long delays in compensation payments.
'That is, there remains a reluctance in some entities to form and then to give practical effect to their understanding of what is ethical, of what is efficient, honest and fair, of what is the right thing to do,' Haynes said in the report.
Some of the recommendations include a renewed focus on corporate and prudential regulators which the report said, should be subjected to a new oversight authority.
AMP referred to financial watchdogs
The inquiry revealed, a top wealth manager of AMP engaged in board-level deception of a regulator over charging customers for financial advice it never gave.
The report finds a total of 22 companies have been referred to ASIC and APRA with criminal and civil charges.
Ahead of the report's release, shares in the "Big Four" banks all closed up 1%.
This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.
Live prices on most popular markets