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%.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
This information/research prepared by IGA or IGA Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. 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. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
Please see important Research Disclaimer.
Live prices on most popular markets
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.