Key take-outs of the Banking Royal Commission final report

After a shocking and scandalous public inquiry, the Royal Commissioner Kenneth Hayne has handed down his final report into the Banking and Finance sector.

The Royal Commission heard serious evidence of misconduct and exposed an industry driven by greed and self-interest, at the expense of customers and members.

The report returned to these themes. Said Commissioner Kenneth Hayne:

Experience shows that conflict between duty and interest can seldom be managed; self-interest will almost always trump duty

76 recommendations in total

The report provides 76 recommendations that will likely impact many parts of the banking, superannuation and financial advice industries.

The report pleasingly addresses some of the more controversial revelations from the Royal Commission, including recommending the immediate end to grandfathered commissions for financial advisers and a new disciplinary system for financial advisers.

Possible criminal or civil action

However, the overwhelming message of the report is that in Commissioner Hayne’s view the current legislative framework is more or less sufficient. What’s needed is far stricter enforcement of the current laws.

Commissioner Hayne has referred 24 companies to the regulator for possible criminal or civil action, including CBA, ANZ, NAB and AMP.

Get Your Super Back

Slater and Gordon is running the only class actions in response to the evidence presented at the Royal Commission, and taking real and concrete steps to put money back into people’s pockets.

In October 2018, Slater and Gordon filed the first class action of the Get Your Super Back campaign, against Colonial First State and the Commonwealth Bank of Australia (CBA). Slater and Gordon allege that Colonial First State put the profits of its corporate group above the interests of its members. It is alleged that Colonial First State failed to obtain the best interest rate available for members, instead accepting a much lower rate from its parent company, CBA.

Slater and Gordon has also launched a class action against NAB and MLC in September last year, alleging that they had engaged in unconscionable conduct by knowingly selling credit card insurance policies to people ineligible to claim, such as the unemployed and disabled.