Royal commissioner makes 76 recommendations to improve the financial sector
Australia's Royal Banking Commission has made 76 recommendations to improve the Australian financial sector in its final report.
The Australian government has agreed to act on all 76 recommendations, with Treasurer Josh Frydenberg addressing the media on Monday, calling for an end to financial misconduct.
Royal commissioner Kenneth Hayne also advised that remuneration structures across the industry, that are used to reward bank staff members and the like, be overhauled to remove systemic conflicts of interest.
Treasurer Josh Frydenberg said, the government will work with its regulators to ensure they are properly resourced.
'The government accepts commissioner Hayne’s considerations,' Mr Frydenberg said.
The government will also compensate those affected by financial misconduct. ‘This will see almost 300 consumers finally see re-compensation,’ Frydenberg said.
The final report found that the industry's problems were aggravated by corporations refusing to accept responsibility, leading to long delays in compensation payments.
'That is, there remains a reluctance in some entities to form and then to give practical effect to their understanding of what is ethical, of what is efficient, honest and fair, of what is the right thing to do,' Haynes said in the report.
Some of the recommendations include a renewed focus on corporate and prudential regulators which the report said, should be subjected to a new oversight authority.
AMP referred to financial watchdogs
The inquiry revealed, a top wealth manager of AMP engaged in board-level deception of a regulator over charging customers for financial advice it never gave.
AMP has been reffered to Australian watchdogs, ASIC and APRA, along with other big names, National Australia Bank Ltd and Suncorp Group Ltd.
The report finds a total of 22 companies have been referred to ASIC and APRA with criminal and civil charges.
Ahead of the report's release, shares in the "Big Four" banks all closed up 1%.
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