As has been widely reported, The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry (“the Hayne Royal Commission”) released its Final Report on 4 February 2019.
The Final Report made a total of 76 recommendations, 17 of which related specifically to the Australian banking sector. The Report also made several cross-sectoral recommendations pertaining to “culture, governance and remuneration”.
These recommendations are summarised below.
Gen Advisory’s Analysis
Gen Advisory’s analysis is that the much-dissected Final Report falls short of major structural reform. We note for example that some of the more contentious recommendations – such as changes to the National Consumer Protection Act (“NCCP Act”) – did not materialise. We also note that the majority of the Report’s 76 recommendations did not contain any prescriptive rule changes, preferring instead to mandate better application of the existing laws.
Notwithstanding this, Gen Advisory’s conclusion is that the Final Report has merit. The Report provides Australian financial institutions with a series of practical recommendations which will enhance their compliance with the spirit and intent of the law. In the long term, this will strengthen the Australian financial sector and, ultimately, help restore community trust in our financial institutions.
Gen Advisory’s detailed research on the implications of Final Report for the Australian financial sector is displayed below.
How Gen Advisory can help financial institutions implement the Royal Commission’s recommendations
Drawing from our toolkit of services, ways in which Gen Advisory can assist financial institutions in implementing the Royal Commission’s recommendations include the following:
- • Ascertaining the institution’s current level of preparedness for the RC’s recommendations – especially those relating to BEAR and CGR.
- • Delivering bespoke training on the Royal Commission’s findings, tailored to the institution’s circumstances.
- • Delivering bespoke research on a specific Royal Commission-related area of interest.
- • Conducting an internal “audit” of the institution’s existing CGR arrangements.
- • Designing an institution-specific technical assistance programme.
- • Managing and executing, on the institution’s behalf, a project to address the Royal Commission’s recommendations.
- • Conducting due diligence on prospective solutions vendors.