Institutions “fall far short” in honest treatment of Australians: Treasurer
The interim report handed down by Commissioner Kenneth Hayne and the Royal Commission's hearings to date clearly show that some financial institutions have fallen far short of treating Australians honestly and fairly, Treasurer Josh Frydenberg said today.
In a statement following the release of the interim report, the Treasurer said the Government is committed to taking strong action to reform the financial sector.
He also said it has continued to progress a comprehensive reform agenda to ensure institutions and their executives are held to account for illegal behaviour and that the financial system is “safe and robust”.
As part of this reform agenda, Frydenberg said the Government has: established the Australian Financial Complaints Authority (AFCA); created a framework to hold banking executives accountable for their actions via the Banking Executive Accountability Regime; boosted banking and financial services competition to benefit customers; and provided the Australian Securities and Investments Commission (ASIC) with an additional $70 million of funding, as well as “significant new powers”.
“There is clearly more work to be done and the Government looks forward to receiving the Royal Commission's final report, which is due by 1 February 2019, and acting on its recommendations,” Frydenberg said.
“The Government thanks Commissioner Hayne and the Commission for their outstanding efforts to date.”
Recommended for you
Financial Services Minister Stephen Jones has shared further details on the second tranche of the Delivering Better Financial Outcomes reforms including modernising best interests duty and reforming Statements of Advice.
The Federal Court has found a company director guilty of operating unregistered managed investment schemes and carrying on a financial services business without holding an AFSL.
The Governance Institute has said ASIC’s governance arrangements are no longer “fit for purpose” in a time when financial markets are quickly innovating and cyber crime becomes a threat.
Compliance professionals working in financial services are facing burnout risk as higher workloads, coupled with the ever-changing regulation, place notable strain on staff.
