Speaking to ABC TV’s Insiders program yesterday, Mr Frydenberg said that while the reports of wrongdoing and adviser sackings at NAB are “various serious allegations”, that the current regulatory framework is sufficient to tackle the problem.
“In terms of a royal commission, we are clearly doing a lot of work through the ASIC process and APRA. I mean, the banks are already heavily regulated,” Mr Frydenberg said.
“I’ve spoken to the chairman of ASIC, Greg Medcraft, and he said this is an absolute top priority for them.
“We’ve also got a series of reports that we’re responding to, including one by a parliamentary joint committee which was bipartisan which looks at boosting the professional, the educational and the ethical standards in the sector through an exam, registration processes, code of ethics and so forth.”
Mr Frydenberg said the introduction of the adviser register – due to launch later this month – and the government’s response to the Murray Inquiry report will also help alleviate concerns about the industry.
The comments follow Senator John Williams telling ifa that support for a royal commission is gaining traction among Coalition MPs following the publication of allegations of poor advice at NAB.
ifa is exclusive media partner for an upcoming finance industry luncheon with Mr Frydenberg in Melbourne. For more information visit
The banks,insurance companies and industry funds have demonstrated through their actions that it is all about them. If the objective of financial planning is about delivering advice and service to customers surely ADVISERS should be leading the debate NOT the institutions. The sad reality is that since these institutions have hijacked the debate they have caused the consumer perception of financial planning advice to plummet. Meanwhile advice practises and their clients are shaking their head and pleading – ask our clients how satisfied they are ! Don’t judge us by the behaviour of the institutions. They represent themselves and their vested interests NOT the advice industry. Its pretty obvious isnt it ?
This response begs the question what do the banks need to do to require a Royal Commission? We know the banks/AMP are part of the government’s funding base but compared to the commission into unions the banks have cost real people significant personal and financial loss. Yet to the Banks/AMP its a small impact into profitabitity. A cost of doing business if you like. Mr Frydenberg you were elected by your constituency and they need your action.