Monday, February 4, 2019

Australia to overhaul regulators after landmark banking inquiry

Australia to overhaul regulators after landmark banking inquiry


Australia’s corporate regulators will be subjected to a new oversight body in a shake-up of the banking sector designed to combat the excessive greed and unethical practices that have engulfed some of the country’s biggest financial institutions.

The Royal Commission, Australia’s most powerful type of government inquiry, also advised in its landmark report on Monday that remuneration structures across the industry – used to reward everyone from bank sales staff to mortgage brokers – be overhauled to remove systemic conflicts of interest.

The report’s recommendations were largely supported by the conservative government immediately after its release. It marks the climax of a year-long interrogation of some of Australia’s biggest corporations and business leaders which wiped A$60 billion ($43.45 billion) from the country’s top finance stocks since hearings began one year ago.

The inquiry revealed misconduct had reached into the sector’s upper echelons, with AMP Ltd engaging in board-level deception of a regulator over the deliberate charging of customers for financial advice it never gave, costing the fund manager its chairman, CEO and several directors.

The final report from Commissioner Kenneth Hayne, a former High Court justice who led the inquiry, found that the industry’s problems were exacerbated by an unwillingness by corporations 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,” the report said.

WATCHDOG BITES
The Royal Commission made 76 recommendations in its final report that included a renewed focus on the corporate and prudential regulators which, it said, should be subjected to a new oversight authority.

Regulators were routinely accused throughout 68 days of Royal Commission hearings of working too closely with the banks. When misconduct was revealed, it either went unpunished or the consequences did not reflect the seriousness of what had been done, the inquiry found.

The Royal Commission used its final report on Monday to recommend that regulators use infringement notices for administrative failings, rather than issues that should be referred to a judge.

The institutional impropriety revealed during the past 12 months hurt some of society’s most vulnerable customers, highlighted by the case of a blind pensioner being persuaded to guarantee a loan without warning her of the risks.

In a separate incident, an insurer used aggressive sales techniques to sell an opaque product to a young man with Down Syndrome.

The report said 24 instances of bad corporate behavior, including the wide-spread charging of fees for services not rendered, have been referred to the regulators for possible prosecution.

Australian Treasurer Josh Frydenberg said in a statement on Monday the government would act on all recommendations.

“The price paid by our community has been immense and goes beyond just the financial,” Frydenberg said.

“Businesses have been broken, and the emotional stress and personal pain have broken lives.”

The inquiry’s recommendations still need to be approved by parliament.

CREDIT SQUEEZE
During 2018, investors responded to the punishing Royal Commission hearings by pulling their money from brand-tarnished insurers, banks and fund managers. Shareholders registered their distaste by voting against the executive remuneration plans of two of Australia’s biggest financial institutions, National Australia Bank and Australia and New Zealand Banking Group.

The two big banks, alongside counterparts Commonwealth Bank of Australia, National Australia Bank, and wealth managers AMP and IOOF, were among the worst hit by the inquiry, although wide-spread impropriety was also found in other sectors including insurance.

The conservative government formerly opposed a Royal Commission into the sector, arguing it would undermine investor confidence in Australia’s banks.

It then reversed its position amid widespread public and political pressure.


But the country’s mortgage broking sector is facing an overhaul of its remuneration structures, whereby the borrower – not the lender – will need to start paying the mortgage broker, disrupting a major channel banks use to increase their home loan books.

Our Standards: The Thomson Reuters




SHARE THIS

Author:

Thanks for visiting our website. Like our FB pages and subscribe for daily updates; you can comment on the above post bellow ↓with your Google id or Facebook id – Thank you for your time..☺

0 comments:

 
‎لطیفے اور شاعری‎
Facebook group · 8,142 members
Join Group
یہ گروپ آپ سب کے لئے ہے۔ پوسٹ کیجئے اور بحث کیجئے۔۔۔۔۔ اپنی آواز دوسروں تک پہنچائے۔۔۔اور ہاں گروپ کو بڑا کرنے کے لئے اپنے دوستوں کو بھی گروپ میں دعو...
 

All Categories

Aaj Kamran Khan ke Saath Aamir Liaquat Hussain Aapas ki Bat NajamSethi Abdul Qadir Hassan AchiBaatain Afghanistan Aga Khan University Hospital AirLineJobs Allama Iqbal America Amjad Islam Amjad Anjum Niaz Ansar Abbasi APP Aqwal Zareen Articles Ayat-e-Qurani Ayaz Amir Balochistan Balochistan Jobs Bank of Khyber Banking Best Quotes Biwi Jokes Blogger Tips Chaltay Chaltay by Shaheen Sehbai China Chitral Coca-Cola Coke Studio Columns CookingVideos Corporate News Corruption Crimes Dr Danish ARY Sawal Yeh Hai Dubai E-Books EBM Education Educational Jobs Emirates English #Quotes English Columns EnglishJokes Funny Photos Funny Talk Shows Funny Videos Gilgit-Baltistan Girls Videos Govt Jobs HabibJalibPoetry Hamid Mir Haroon Al-Rashid Hasb-e-Haal with Sohail Ahmed Hassan Nisar Hassan Nisar Meray Mutabaq Hazrat Ali AS Sayings HBL Health HikayatShaikhSaadi Hospital_Jobs Hotel Jobs Huawei Hum Sab Umeed Say Hain India Information Technology Insurance International News Islam Islamabad Islamic Videos JammuKashmir Javed Chaudhry Jazz Jirga with Salim Safi Jobs Jobs Available Jobs in Karachi Jobs in KPK Jobs in Pak Army Jobs_Sindh JobsInIslamabad Jokes Jubilee Insurance Kal Tak with Javed Chaudhry Karachi Kashmir KhabarNaak On Geo News Khanum Memorial Cancer Hospital Khara Sach With Mubashir Lucman Khyber Pakhtunkhwa Lahore Latest MobilePhones Lenovo LG Life Changing Stories LifeStyle Live With Dr. Shahid Masood Live with Talat Hussain Maulana Tariq Jameel MCB Bank Microsoft Mobilink Mujeed ur Rahman Shami Munir Ahmed Baloch Nasir Kazmi Nazir Naji News News Videos NGO Nokia North Korea Nusrat Javed Off The Record (Kashif Abbasi) Off The Record With Kashif Abbasi On The Front Kamran Shahid OPPO Orya Maqbool Jan Pakistan Pakistan Army Pakistan Super League Pashto Song Photos Poetry Political Videos Press Release Prime Time with Rana Mubashir PTCL Punjab Quetta Quotes Rauf Klasra Samsung Sar-e-Aam By Iqrar-ul-Hasan Sardar Jokes Saudi Arabia ShiroShairi Show Biz Sikander Hameed Lodhi Sindh Social Media Sohail Warriach Songs Sports News Stories Syria Takrar Express News Talat Hussain Talk Shows Technology Telecommunication Telenor To the point with Shahzeb Khanzada Tonight with Moeed Pirzada Turkey Tweets of the day Ufone University Jobs Urdu Ghazals Urdu News Urdu Poetry UrduLateefay Video Songs Videos ViVO Wardat SamaaTV WaridTel Wasi Shah Zong اردو خبریں
______________ ☺ _____________ _______________ ♥ ____________________
loading...