The final report of the Royal Bank Inquiry Commission provides a picture of a sector that favors money over the needs and well-being of its clients. The Commission has issued a set of recommendations to defend the rights of customers.
The report suggested that many players in the financial services sector were motivated by greed rather than seeking their customers.
"If that's what's happening in a regulated industry, imagine the situation in the real estate investment consulting industry where savers can ruin people's financial lives without too much risk of lawsuits, because it's not easy." Is an unregulated environment? ") President Peter Koulizos said.
The royal commission proposed rules designed to limit the excesses observed in the sector.
These recommendations include prohibiting banks from paying commissions to mortgage brokers, which would be paid by mortgage borrowers; make brokers liable to civil litigation in case they do not act in the best interests of the borrower; require financial advisors to disclose conflicts of interest in a written statement before giving their opinion; and establish a compensation system as a last resort for those who have a "viable claim".
The Law Council of Australia welcomed the recommendations, saying that they would have significant consequences for the banking and financial services sector, as well as for the treatment of consumers.
"The Australians were rightly shocked by some of the stories heard during the vast hearings of the Royal Commission – profits made available to the people and, in some cases, the rule of law. Recommendations made by Commissioner Kenneth Hayne have put consumers first and set a roadmap that can lead the way in the future, ensuring that banks and financial service providers are accountable. to make, "Arthur Moses SC, President of the Law Council of Australia. "The central element of the Law Council's brief was the call for simplification of complex laws, to make them easier to understand and apply, and we are pleased with the recommendations that underlie this change."
The Royal Bank Investigation Commission also recommended harsher sentences for offenders, law enforcement, broader powers for regulators, and simplification of legislation. scale of the industry.
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