The goal of the inquiry, according to APRA, is to “identify any shortcomings in the governance, culture and accountability frameworks and practices within CBA, and make recommendations as to how they are promptly and adequately addressed”.
“It would include, at a minimum, considering whether the group’s organisational structure, governance, financial objectives, remuneration and accountability frameworks are conflicting with sound risk management and compliance outcomes,” said APRA.
APRA chairman Wayne Byres said the decision to initiate an inguiry was prompted by a “number of issues” that have “damaged the bank’s reputation and public standing” – without specifically mentioning AUSTRAC’s civil court case against CBA related to money laundering.
“The overarching goal of the prudential inquiry is to identify any core organisational and cultural drivers at the heart of these issues and to provide the community with confidence that any shortcomings identified are promptly and adequately addressed,” Mr Byres said.
“CBA is a well-capitalised and financially sound institution. However, beyond financial measures, it is also critical to the long-run health of the financial system that the Australian community has a high degree of confidence that banks and other financial institutions are well governed and prudently managed.
“The Australian community’s trust in the banking system has been damaged in recent years, and CBA in particular has been negatively impacted by a number of issues that have affected the reputation of the bank.
“Given its position in the Australian financial system, it is critical that community trust is strengthened. A key objective of the inquiry will be to provide CBA with a set of recommendations for organisation and cultural change, where that is identified as being necessary.
“The chairman and CEO of the CBA have assured me that the bank will fully co-operate with the inquiry, and APRA welcomes that co-operation.”
A final report into the CBA’s practices will be issued six months after the inquiry’s official commencement.
I think Ian Narev’s golden parachute should be increased to $50 Mill.
An outstanding level of Scandals in all areas of the CBA under his CEO reign.
How these directors and CEOs get away unscathed is a complete farce.
Bit like the GFC, I believe only a handful of perpetrators, CEOs, etc have ever faced any legal charges. And 99% never will.
While I agree with your premise in regards to some form of punishment, I also think we need to be pragmatic about the fact that there are already measures in place to punish fraudulent activities, if a board member or CEO was held so responsible that couldn’t take any risks at all to grow a business, businesses and the Australian economy would die.
So aiding and abetting money laundering in the name of growing a business is ok…not ok?
Gav, clearly the point went straight your ears. The point was that if directors of listed companies are liable for decisions (other than fraud) then nothing will happen.
directors can be personally held liable for many decisions (other than fraud)
Shouldn’t have to look too far to see poor culture and behaviours,just sit in the branch morning meetings!
How is Nurev still in this post? He’d have thrown all his advisers under the bus. He is paid the big buck and the buck stops with him Resign already!
Have you been living under a rock, finishes up at end of this FY
So he’s still in his posy until the end of the year…not fired NOW? What part of this didn’t you understand?
You clearly can’t have a CEO move on with immediate effect , needs to be transition
we need to ensure:
1. the board members are all named and shamed and personally and professionally ruined, and a professional register enacted to keep their names on it forever and ever, even after they have served their sentences (if any), so they keep getting punished over and over for the same thing
2. were there any other parties involved? did they know? aid or abate, if so they too need to be named and shamed and personally and professionally ruined and we need to create another register to treat them like animals
everyone needs to be on a level playing field so anyone who makes a mistake is :
a. named and shamed
b. professionally and personally ruined
c. punished for the same thing over and over again
I have some traffic infringements but doing something 53,700 times can’t be described as a mistake! Yes, there are some careers here that should be ruined with good cause because that’s what is meant to happen in a scandal. Otherwise nothing is ever anyone’s fault.
I think the author above your comment is lamenting the fact that had the protagonist been a financial adviser, a small, clearly trivial, and immaterial omission would ruin their lives personally and professionally. Yet, after 53,700 instances (of potentially, fatal acts) it is highly probable that no one at the CBA will be held accountable.
Equality before the law. My ass.
While this isn’t a bad thing, still seems to be soft targets. Why not also look into the reported corruption and fee gouging in the ISA space? Or is it too hard given the misleading public perception and left sided political clout? APRA is gutless as ASIC
Anon, you cant be disparaging about those nice friendly cuddly people at Union Super can you? We’re all in this together, brother. After all, where else can you be one of the trustees of a multi-billion dollar fund and your only qualification is a Cert IV in Unionism? I kid you not….. #UnionsArentSuper