Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry: findings and what happened next
Misconduct in Australia's banking, superannuation and financial services industry.
- Country
- Australia
- Type
- royal commission
- Established
- 14 December 2017
- Chaired by
- Kenneth Hayne
- Report published
- 1 February 2019
- Recommendations
- 76
Implementation, as of 14 September 2022Implementation has been partial. Treasury reported in August 2021 that 26 of 40 recommendations in its update were completed, and a law firm tracker last updated in September 2022 said that in many cases planned changes had not been implemented or fully implemented. No consolidated official status after 2022 was identified.
What the inquiry found
- The commissioner found that "the primary responsibility for misconduct in the financial services industry lies with the entities concerned" and their boards and senior management.2
- The commissioner wrote that the misconduct could not be dismissed as incompetence or poor computer systems.2
- The commission referred 24 matters to the regulators ASIC and APRA for further investigation.2
Key recommendations
- Of the 76 recommendations, 54 were directed to the federal government, 12 to regulators and 10 to industry.3
- The final report was submitted to the Governor-General on 1 February 2019 and tabled in Parliament on 4 February 2019.1,4
What happened next
- The government published an implementation timetable and said it would act on all 76 recommendations plus 18 additional commitments, but later moved away from the recommendation on mortgage broker trail commissions in favour of a review.3
- Treasurer Josh Frydenberg accepted the final report and announced an industry funded compensation scheme of last resort.2
- In an answer to a Senate question on notice, Treasury reported that 26 of the 40 recommendations covered by its update were completed, 11 were at consultation stage and 3 required a review before proceeding.5
- A MinterEllison tracker of the 76 recommendations, last updated on this date, said that in many cases the planned or proposed changes had not been implemented or fully implemented.6
Read the report: www.royalcommission.gov.au/banking/final-report
Sources
- Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, Final Report (4 February 2019)
- AAP via Morningstar Australia, Hayne takes aim at banking sector greed (4 February 2019)
- The Conversation, Frydenberg outlines financial sector reform timetable (2019)
- Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry
- ifa, What progress has been made since the royal commission? (23 August 2021)
- MinterEllison, Tracking progress against each of the Hayne Commission's 76 recommendations (14 September 2022)