Support across the major political parties make a banking royal commission “almost an inevitability”, according former Labor MP Bernie Ripoll.
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.
Adrian Flores is a deputy editor at Momentum Media, focusing mainly on banking, wealth management and financial services. He has also written for Public Accountant, Accountants Daily and The CEO Magazine.
You can contact him on [email protected].
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