Conditional superannuation which can we withdrawn years after bankers retire might be the best way to get them to do the right thing.
First up before the Royal Commission on Monday will be the chief executive of the Commonwealth Bank. The era of the big four banks might be ending.
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How can our major institutions, particularly from the banking and finance sector retain their corporate legitimacy? What role should their boards be playing?
Product disclosure laws are meant to help insurance buyers make informed rational decisions. Our research shows more must be done to protect consumers.
Better-educated people are better equipped to ask the right questions and make more informed decisions.
Dirk Baur, The University of Western Australia; Elizabeth Ooi, The University of Western Australia, and Paul Gerrans, The University of Western Australia
Let’s recognise the limitations of regulation as we try to improve outcomes. Money spent on new regulations may be better put to further educating future customers.
Some financial institutions might become simply ‘too big to manage’ as well as ‘too big to fail’.
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Researchers found that larger banks are more likely than their smaller peers to experience “operational losses”, which includes a failure to meet obligations to clients.
The collapse of a royal commission witness provided a reminder of the stark differences between financial services and health services when it comes to caring for customers.
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The financial services industry is in need of a new paradigm to rediscover what finance is for – to improve the financial and economic well-being of society.
ASIC boss James Shipton has signalled a shift to more vigorous enforcement and Treasurer Scott Morrison has bolstered the regulator’s funding to enable this.
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Putting regulators inside corporations isn’t new, and the US experience highlights risks of regulatory capture, but the move could make a difference if ASIC is shifting to more robust enforcement.
New AMP chair David Murray’s prescription for corporate governance doesn’t acknowledge the structural drivers of systemic misconduct.
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Evidence to the Banking Royal Commission points to the systemic failings of corporate governance built on the idea of shareholder primacy. It’s time to rethink the unitary board system for a start.
The royal commission has left AMP with a lot of explaining to do, much of it related to how performance targets drove poor behaviour.
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Pressure to meet ever-higher performance targets can lead to misconduct of the sort exposed by the royal commission. Targets need to operate within a framework of ethical governance to avoid this.
From the first hearings of the royal commission, the senior counsel assisting, Rowena Orr QC, laid bare the toxic culture behind many consumer lending practices.
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Restructuring might help manage conflicts of interest between offering advice and selling products, but it doesn’t fix the culture that sacrifices customers’ interests to the pursuit of profits.