November 6, 2018
The major banks and regulators will make another appearance before the Financial Services Royal Commission (FSRC) in November as the latter focuses on the causes of misconduct identified in its Interim Report.
The Commission released details of the seventh round of hearings which will take place from 19 to 23 November in Sydney and from 26 to 30 November in Melbourne, and will focus on the role of culture, governance, remuneration and risk management practices in alleged misconduct presented during the previous six rounds.
The FSRC will also consider the role of ASIC and APRA in overseeing the actions of financial services providers, deterring misconduct by those groups, and taking action when misconduct occurs.
A Practice Guideline, released with the hearing information, stated the purpose of the hearings was “…to provide the Commissioner with an opportunity to explore with senior executives from certain financial services entities, and the regulators of those entities, some of the policy issues identified in the Interim Report, and following Rounds 5 and 6 of the public hearings”.
Round 5 covered life insurance but was not included in the Interim Report, however, the Commission questioned the validity of life insurance commissions in a policy released after the hearings (see: Royal Commission Questions Ongoing Use of Life Insurance Commissions).
The guideline further stated, “The public has now had an opportunity to provide the Commission with submissions in relation to those policy issues [raised in the Interim Report]. The Commission is considering those submissions, and they will inform the matters that the Commissioner seeks to explore during Round 7”.
The FSRC stated it would deal with the issues stemming from the Interim Report through a number of entities which would be questioned by the Counsel Assisting the Commission, and by any legal representatives the entities have engaged.
The entities currently slated to appear are as follows, and further groups may be added before the hearings commence:
- AMP Limited
- Australia and New Zealand Banking Group Limited
- Australian Prudential Regulation Authority
- Australian Securities and Investments Commission
- Bendigo and Adelaide Bank Limited
- Commonwealth Bank of Australia
- Macquarie Group Limited
- National Australia Bank Limited
- Westpac Banking Corporation