Royal Commission Shifts Focus to Causes of Misconduct

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

  • Jeremy Wright

    If you want a quick comparison of what has occurred with the Financial Services Industry, look no further than the Movie Chicago, with Richard Gere, Renee Zellweger, Catherine Zeta-Jones and other great cast members.

    It shows that the Truth should never get in the way of a good story and in actual fact, the truth should never see the light of day.

    The real truth of the whole Financial Services fiasco will only come to light, when it is too late for the many thousands of innocent people and Businesses who will be destroyed.

    The Royal Commission is highlighting that even those whose job it is to find fault and provide some sort of pathway to achieve a solution, are too far removed from the issues and have insufficient experience to ask relevant questions that would bring to light to, for instance, the REAL problems with the Life Insurance Industry, which has nothing to do with what the Royal Commission and nearly all involved, including ASIC have been focusing on.

    Instead, they have always followed the path of least resistance.