On Friday the government will receive a report likely to recommend a requirement for advice in a client’s “best interests” be replaced with a requirement to give mere “good advice”.
The royal commission wanted the corporate cop to first ask ‘why not litigate?’. The treasurer’s new guidelines suggest it should instead ask ‘why not negotiate?’.
It was one of only two recommendations the government rejected.
Banks and other financial institutions will be left with plenty of ways to treat customers badly under new, overdue, rules.
Businesses are reluctant to invest, but that might be because they know what they are doing.
The number one commandment of the anti money laundering law is “Know your customer”. AUSTRAC is alleging Westpac didn’t, and didn’t seem to want to.
The Rugby World Cup an tell us a lot about banking.
Evidence for the prime minister’s contention that the banks are “profiteering” is thin on the ground.
Outcomes are what matter for customers. The new Banking Code of Conduct doesn’t go near them.
“Balanced scorecards”, of the kind countenanced by the Australian Prudential Regulation Authority, are inherently unbalanced.
The fifth banking code of conduct since 1993 looks better than those that have gone before it.
People expect financial institutions to serve them better in the wake of the royal commission. There’s reason to believe they won’t, for long.
The government has agreed to create an independently-chaired body to report on the performance of ASIC and APRA, but it hasn’t said its reports will be made public.
There’s concern that paying upfront for the services of mortgage brokers would frighten customers away. But it needn’t, if they provide good service and explain what are charging for.
The budget will include another round of tax cuts and provide about $600 million to pursue wrongdoers and help restore trust in the financial system.
Josh Frydenberg wants to leave mortgage broker commissions unchanged for three years. It’s hard to see why.
The ASX was late to the corporate governance party and its fourth reheat remains as flawed as ever.
Suddenly, ASIC is about to have real power. It’ll be easier to get prosecutions and they will hurt, even if the law remains less than completely clear.
In trying to be values-free (like physics & chemistry), business schools have succeeded in justifying amoral behaviour. No more! We’ve seen the results in the Banking Royal Commission.
The push against brokers might be right in theory, wrong in practice.