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.”


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


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’

Grow your business exponentially in 2022!

Discover the right strategies to build a more structured, efficient and profitable businesses at The Adviser’s 2022 Business Accelerator Program.

Visit the website here to secure your ticket.

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

An industry poll has been launched to understand the key issues impacting mortgage and finance industry professionals leading up to the 2022...

The mutual bank has confirmed that it has reached a milestone figure of $10 billion in assets. ...

The financial complaints body has recruited a new leader for its compliance and monitoring team. ...

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!

Do you think APRA's bank buffer changes will see more borrowers use non-banks?

Website Notifications

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