Pressure still building for Royal Commission
A Royal Commission into the banking and financial services industry is a more desirable outcome than any of the inquiries and actions thus far launched by the Government, according to the Finance Sector Union (FSU).
Claiming to hold a unique position in the debate because of the number of its members employed in the banking industry, the FSU said that while it had backed many of the other changes such as the Sedgewick Review and the imposition of the Bank Executive Accountability Regime (BEAR) it believed the Royal Commission was the only option likely to work.
The FSU’s comments have come at the same time as the Greens and other cross-benchers in the House of Representatives have indicated they will use their numbers to press for either a Royal Commission or a Parliamentary Inquiry into banking and financial services.
The FSU said that five years from now, the healthiest banks would be those that had a culture that embodied fairness, transparency and ethical behaviour.
“These elements will be what rebuilds trust, and that rebuilding of trust is ultimately what will benefit staff and consumers,” the union said. “The FSU believes the quickest way to get to this outcome – a fairer, trusted sector - isn’t with piecemeal reform, committees or self-regulation. Instead, we support the establishment of a Royal Commission that goes to the heart of poor culture.”
The Opposition and elements of the cross-bench are expected to press for the Royal Commission or Parliamentary Inquiry when the House of Representatives resumes next week.
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.
