Royal Commission into misconduct in the banking, superannuation and financial services industry
On 30 November 2017, the Government announced a Royal Commission (RC) into misconduct in the banking, superannuation and financial services industry. Former High Court Judge the Honourable Kenneth Madison Hayne AC has been appointed as Royal Commissioner.
Proposed terms of reference
The draft terms of reference require the Commission to inquire into certain matters, including:
- the nature, extent and effect of misconduct
- any conduct, practices, behaviour or business activity that falls below community standards and expectations
- the use of superannuation members’ retirement savings for any purpose that does not meet community standards and expectations or is otherwise not in the best interest of members
- whether any findings of poor conduct are attributable to culture, governance practices, risk management, recruitment or remuneration practices
- the effectiveness of mechanisms for redress for consumers
- the adequacy of:
- existing laws and policies
- the internal systems of financial services entities
- forms of industry self-regulation
The Commission must submit a final report within 12 months.
The Government has stated that their current reform agenda including AFCA, super governance and ASIC reforms will continue.
The powers of a Royal Commission include:
- summoning witnesses
- requiring that documents are produced
- applying for a search warrant
Specialist advice should be sought in relation to:
- claiming legal professional privilege; and
- failing to comply with the Commission’s instructions
We are always keen to hear your valuable feedback and suggestions. Please let us know if there are any policy issues or concerns that affect you.