Royal commission report: Big bank stocks surge at ASX open

Irving Hamilton
February 8, 2019

Former chief monitor of business competition Graeme Samuel suggested a simple, one-line code of conduct financial services businesses could sign to jog their memory of the findings of the inquiry headed by Kenneth Hayne.

Do they get time off after recovering from the damage they suffered by your bank gouging them?

In the same statement, Henry disagreed with Hayne's description of his attitude: "In his final report, commissioner Hayne said I seemed unwilling to accept criticism of how the board had dealt with some of the issues raised by the commission".

The board led by Henry failed to recognise the importance of the issue and did not do enough to strongly encourage management to address it with "an appropriate proposal" to the regulator, according to the commissioner.

Shares in wealth manager AMP, which was savaged by the inquiry previous year (after revelations it took fees for no service and lied to the regulator), jumped over seven per cent.

"To your point - the CEO of a big bank, it's always going to be open to criticism if you take extended leave".

The hardest-hit company has been financial planner AMP Ltd, which saw its CEO, chairwoman, chief lawyer and three directors leave following evidence its board allegedly doctored an independent report to a regulator.

"Entities and individuals acted in the ways they did because they could", it went on. Taking money for nothing is dishonest, Hayne wrote.

Hayne referred a further 22 instances of alleged misconduct by firms including National Australia Bank Ltd., Commonwealth Bank, AMP, Suncorp Group Ltd. and IOOF Ltd.to regulators for investigation, which also could lead to civil or criminal charges.

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It's also exciting, but that really only comes when I'm in the auto . "To continue to improve, this is the best situation that can happen to me", he said.

Commissioner Hayne had been praised for his no-nonsense approach to the hearings. And the Federal Court will be given expanded jurisdiction over financial crime to make it easier to launch cases.

"By the time of the review referred to in Recommendation 2.3, these exemptions from the ban on conflicted remuneration will have been in place for nearly 10 years", Commissioner Hayne says. I know that it is not so. "I am not persuaded that it is necessary to mandate structural separation between products and advice". Thorburn has stood fast, saying that Hayne's comments don't reflect who he is or how he's leading the bank.

"We have said we are not prepared to accept good intentions where urgency, consistency and discipline is required".

Relief that banks dodged what could have been hammer blows - forced breakups or tighter lending rules - sparked the biggest rally in financial shares in a decade. On top of more muscular regulation, the sinking housing market and rising costs for compliance and to compensate customers are putting profits under pressure.

"He just gave them a blast, it's the only bank, only institution that he really gave a blast to".

The Royal Commission, Australia's most powerful type of government inquiry, also advised in its landmark report on Monday that remuneration structures across the industry - used to reward everyone from bank sales staff to mortgage brokers - be overhauled to remove systemic conflicts of interest.

Treasurer Josh Frydenberg's response to the Royal Commission.

The Sydney Morning Herald on how banks haven't escaped unscathed.

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