In the latest episode of The ifa show, Mr Ripoll said there is support for a future banking royal commission that stretches beyond the Labor Party.
“I’d say to you the Labor Party is not the only group in Australia pushing for a banking royal commission,” Mr Ripoll said. “I would daresay people in the Liberal Party, National Party and other parties.
“My view in terms of where this ends up depends on a whole range of factors, but I think there seems to me to be almost an inevitability around some sort of royal commission.”
Mr Ripoll also said such a royal commission would not simply be just about the major banks.
“I think that’s almost a misinterpretation. It’s about our financial system. It will of course include the banks and a lot of other elements and parts of our financial system,” he said.
In regard to the FOFA laws, Mr Ripoll said it would be unclear as to the true boundaries of the best interests duty until the law is tested further in the courts.
“Parliaments can create new laws, but really until they are tested, no-one knows what the boundaries of those are and how they will operate in practice,” he said.
“Court cases on this are really important to make it clearer to the market and to providers and everyone involved.”
The Federal Court declared earlier this month that NSG Services Pty Ltd (formerly National Sterling Group Pty Ltd) breached the best interests obligations of the Corporations Act.
Mr Ripoll is the author of the 2009 Ripoll report, which led to the Future of Financial Advice (FOFA) reforms in place today.
Agree re. comments here about Union funds, would also include the mandate of assessing whether the self interest of unions should actually preclude them from being able to have any relationship as super fund trustees, or say in these funds at all (let alone use them as a cash cow).
The more I see the work of the FSC these days the more I agree with a Royal Commission.
As long as any Royal Commission also looks into union funds, then bring it on. Interesting that Bernie Ripoll is saying the Royal Commission should include a lot of other elements of the financial system as well as banks. Not sure his old pals in the Labor party are thinking this way though. The union officials pulling the Labor party strings are highly unlikely to support any investigation that shines a light on the dodgy practices of union funds.
100% – Provided the Royal Commission includes all of the Industry funds (or all funds really), I’m all for it. If not, it’s not going to solve anything