Powered by MOMENTUM MEDIA
subscribe to our newsletter

Regulators ‘have a case to answer’

The federal Treasurer has raised questions concerning the ability of Australia’s regulators to address misconduct in the financial sector.

Speaking to the media, Treasurer Josh Frydenberg questioned whether regulators have effectively held financial institutions accountable for breaches revealed by the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.

“[Like] other Australians, I’m appalled by the conduct that has been revealed,” the Treasurer said.

“Namely, fees for no service, fees being charged to dead people, 300,000 alleged breaches of insurance laws while providing unsolicited products.

“This is not what we would expect from our financial services sector, from people who are in a position of trust.”

Advertisement
Advertisement

Mr Frydenberg continued: “At the same time, [the] regulators do have a case to answer because in many cases they were aware of this conduct.

“I am asking the questions as to why they didnt stamp it out and why they didnt hold those responsible accountable.”

Mr Frydenberg’s comments follow the release of a report from the Australian Securities and Investments Commission (ASIC), in which it was critical of the “inadequate” compliance systems of the financial services institutions, claiming that they’ve been “too slow” to respond to breaches, and that it is “actively considering enforcement action”.

Following its review of selected financial services groups’ compliance with breach reporting obligations (REP 594), ASIC identified “serious, unacceptable delays in the time taken to identify, report and correct significant breaches of the law among Australia’s most important financial institutions”.

Government could extend RC proceedings

PROMOTED CONTENT


Further, the Treasurer stated that the government would be open to extending the commission’s proceedings at the request of Commissioner Ken Hayne.

“[If] the royal commissioner wants the extra time, then the government will favourably consider such a request.

“[Commissioner Hayne] has done an excellent job to date. Hes been very professional and very focused in the [hearing].”

The commission’s interim report is due to be released by 30 September, with the final report due in February.

[Related: ASIC mulls enforcement amid ‘unacceptable’ delays]

Regulators ‘have a case to answer’
mortgagebusiness

Are you a new-to-industry broker in the process of growing your business? Then there’s some great news: The Adviser’s New Broker Academy is back in 2021 and will provide you with essential insights into cutting-edge tools, strategies and processes to fast-track to success. Don’t miss your chance to attend. To secure your FREE place, visit newbroker.com.au now!

Charbel Kadib

Charbel Kadib is the news editor on the mortgages titles at Momentum Media.

Before joining the team in 2017, Charbel completed internships with public relations agency Fifty Acres, and the Department of Communications and the Arts.

You can email Charbel on: This email address is being protected from spambots. You need JavaScript enabled to view it.

Latest News

Home ownership costs jumped by 130 per cent over two generations, with Gen X spending a quarter of their income servicing their loan, accord...

Fintech lender Tic:Toc has secured $25 billion of additional funding for the next seven years, after extending a partnership with Bendigo an...

The non-bank lender has closed its first RMBS deal under the Bluestone Prime program, worth $700 million. ...

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

How long do you think it should take to discharge a mortgage?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.