The Government will not establish a Royal Commission to investigate the advice failings of the Commonwealth Bank, saying enough inquiries have already been carried out.
Delivering the Government’s response to the Senate inquiry into the performance of the Australian Securities and Investments Commission (ASIC), Acting Assistant Treasurer, Senator Mathias Cormann, said the Government did not accept the Senate Economics Reference Committee’s recommendation to establish a Royal Commission into CBA. The inquiry was established to address accusations of incompetence and inaction levelled at ASIC over its handling of poor advice practices within CBA’s networks (see: ASIC ‘Incompetence’ Leads to Senate Inquiry).
“There have already been several comprehensive inquiries into these and related matters,” Senator Cormann said.
“The Government considers that the most important focus today must be on resolving any legitimate outstanding grievances from affected Commonwealth Bank customers through the Open Advice Review Program and enforcement by ASIC.”
He said the CBA’s Review Program should be given an opportunity to work, and that the bank should resolve any outstanding and unresolved issues for its aggrieved customers.
The Senator also acknowledged the steps ASIC has taken to address some of the numerous recommendations directed towards the regulator, including the establishment of an Office of the Whistleblower, and improved communications procedures.
…the most important focus today must be on resolving any legitimate outstanding grievances from affected Commonwealth Bank customers
Senator Cormann said the Government would continue to work with all relevant stakeholders on improving professional, ethical and educational standards across the industry.
“Our focus is on ensuring Australians saving for their retirement or managing financial risks through life can have access to high quality advice they can trust and which is also affordable,” Senator Cormann said.
“We need to ensure we have a robust but efficient financial services regulatory system, which is competitively neutral so that people saving for their retirement or managing financial risks through life can access high quality advice they can trust and which is also affordable.”
He added that the working group established to develop the new ASIC Register of Financial Advisers (see: Industry Backs Government Adviser Register) will also carefully consider the Senate Committee’s recommendations in relation to the proposed introduction of a national exam, and the requirement for advisers to hold a relevant degree qualification.
However, Senator Cormann said the Government has yet to address the Committee’s recommendations relating to the role, objectives and funding of ASIC. He advised that these will be considered as part of the Government’s response to the Financial System Inquiry, which is due to provide its report next month.
