The Final Report arising from the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry was released to the public at 4.10pm on 4 February 2019 (the Report). Consisting of 3 volumes, over 1000 pages and 76 recommendations it has been remarkable how quickly industry commentators, industry representatives and consumer bodies have digested and responded to the Report.
The overall report card for the Report is mixed, while some commentators consider the Report and Recommendations to be widespread and measured, others feel that the Report and Recommendations have not gone far enough. In either case, it would seem to be a point of agreement that the changes are not revolutionary. Vertical integration in the banking industry will live another day and there will be no new peak Regulatory bodies or mergers of existing bodies, although mortgage brokers have arguably taken the biggest hit with material changes to their revenue source being proposed.
However, upon implementation of the Recommendations (all of which have been accepted and will be actioned by the Government), statutory accountabilities will have greater reach, ASIC will be more litigious and banking, superannuation and financial services industries will not be able to hide behind exemptions, wield their power to negotiate acceptable outcomes and will be held to a higher standard of conduct and behaviour.
Ash St.’s Interpretation of the Recommendations
No doubt impacted entities in relevant sectors will be busy analysing the impact of Recommendations and what it means for their business. To assist with this analysis, Ash St. have developed a series of practical insights on key themes which have emerged from the Final Report and its Recommendations. We have also highlighted some of the potential business, regulatory and practical impacts of the Recommendations to assist in preparations for the changes that lie ahead.
To access each of these Summaries, please see below.
The Ash St. Governance, Compliance and Regulatory practice is well placed to assist impacted entities with understanding and actioning changes arising from the Recommendations including:
- advising on the legal impact of changes, assisting with the implementation of upcoming Regulatory changes;
- advising and assisting with enhancements to governance, risk and compliance frameworks;
- systems and controls, remediation and ongoing governance;
- risk and compliance management of regulatory requirements.
We have also had extensive experience in the implementation of the Banking Executive Accountability Regime and are currently assisting up to 19 ADIs with the implementation of the BEAR.
We view the Royal Commission recommendations as an opportunity for industries to strengthen their compliance frameworks and apply independent practices to their respective businesses.