The federal government has rejected recommendations to establish a royal commission into the Commonwealth Bank following its widely publicised financial planning scandal.
In a statement from the minister of finance yesterday, the government said there have already been several comprehensive inquiries into the events and related matters.
The government backed CBA’s Open Advice Review Program and enforcement by ASIC as the best approach to resolving “any legitimate outstanding grievances” from affected CBA customers.
“That is why the government has welcomed the Commonwealth Bank's announcement of the Open Advice Review Program, including the establishment of an independent review panel headed by former High Court Justice the Hon Ian Callinan AC and the appointment of Promontory Financial Group as the independent expert for the program,” according to the minister’s statement.
“The government will continue to work with all relevant stakeholders in the financial services sector to build on recent improvements to keep lifting professional, ethical and educational standards across the financial advice industry,” the statement said.
“Our focus is on ensuring Australians saving for their retirement or managing financial risks through life can have access to high quality advice they can trust and which is also affordable,” it said.
“That is why we will keep working to ensure Australia has the most efficient, transparent and competitive financial services system possible, where the retirement savings of Australians can be maximised and the tools are available and accessible to people across Australia to manage financial risks and opportunities through life.”
The government's industry working group on the establishment of the ASIC Register of Financial Advisers will also carefully consider the senate committee's recommendations in relation to the proposed introduction of a national exam, continuous professional development requirements and the requirement for financial advisers to hold a relevant degree qualification.