The Final Report of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry was released on Monday 4 February 2019.
This report will drive significant transformation in financial institutions including operating models, product design, customer interaction, governance, remuneration and risk management. Businesses impacted include banks, mortgage brokers, wealth managers, insurers, superannuation funds and financial advisors.
The Commission’s work has four clear observations:
- the connection between conduct and reward
- the asymmetry of power and information between financial services entities and their customers
- the effect of conflicts between duty and interest
- holding entities to account.
The Commission sets out its final recommendations and findings about the Australian banking and financial services sector under seven broad categories in the Final Report.
Our team of specialists have published insights of what we see as the key implications for the financial services sector, together with summaries of both the Interim Report and Final Report.
- Culture and governance in financial services following the Royal Commission – With the release of the Royal Commission’s Final Report it is clear that every financial services entity must look closely at its culture.
- Remuneration in financial services: Reducing misconduct and repairing trust – The Royal Commission’s recommendations will impact how remuneration is designed, implemented and monitored in financial services.
- Focus on executive accountability in financial services – Senior management across financial services are to be held to account under BEAR.
- Financial advice following the Royal Commission – The financial advice industry will need to continue to provide quality advice.
- Regaining trust after the Royal Commission – Restoring trust in financial institutions post the Royal Commission is essential.
- Agricultural lending following the Royal Commission – New procedures will improve farm lending post the Royal Commission in financial services.
- Board composition for super funds – Super boards will be structured on skills and capabilities post the Royal Commission.
- Royal Commission super insights – Observations on the implications for superannuation from the Royal Commission.