In a response to the Senate inquiry into the performance of ASIC, finance minister and acting assistant treasurer Mathias Cormann announced formally that a royal commission into the bank’s advice arms will not be forthcoming, despite a recommendation for such a procedure in the initial Senate report.
“The Government does not accept the recommendation to establish a Royal Commission into the Commonwealth Bank,” Senator Cormann said.
“There have already been several comprehensive inquiries into these events and related matters.
“The Government considers that the most important focus today must be on resolving any legitimate outstanding grievances from affected Commonwealth Bank customers through the Open Advice Program and enforcement by ASIC.”
The Open Advice Review and independent review panel should be “given the opportunity to work and resolve any outstanding and unresolved legitimate issues for aggrieved CBA customers”, the statement from Senator Cormann said.
“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 added, pointing to the government’s adviser register – details of which were released today – and proposals to introduce a national adviser examination, which the minister said the government is still considering.
I dispute the claim that there have been “several comprehensive inquiries”. Two does not make several and they have not been comprehensive. Sure, let the “Open Advice Program” run its course. Then, when it is obvious to all that it has failed, launch the royal commission . . .
This is the “Pink Batts” issue of our industry but Abbott would only have his mates in the frame for this one…
It is just & fair to inquire into the activities of wealth management businesses of all four major banks & any other banks as well as all insurance & product providers.
This could be best done by the goverent to establish a remediation body independent of all regulatory & professional bodies. Let the new entity call for complaints from the public.
Whilst this being done all wealth management & advice activities of such entities should be put on hold likewise any other small entities & individuals being handled. There should not be any favouration for big open erators as being done for CBA. The above measure will be far more effective than a slow moving archaic royal commission which gives way to idle chat as well as skin to building castles in the air.
Ofcourse paying a lot of money as political donations will get you there. In third world countries we call it Bribe but here we call it Donation.