Chapter 1 - Introduction
[1]
Journals of the Senate, No. 86, 14 February 2018, p. 2717.
[2]
Journals of the Senate, No. 102, 25 June 2018, p. 3271.
[3]
In March 2018, the Treasury Laws Amendment
(Putting Consumers First – Establishment of the Australian Financial Complaints
Authority) Act 2018 was enacted to create the Australian Financial
Complaints Authority (AFCA). See Corporations Act 2001, Sect 761A; the
Hon Kelly O'Dwyer MP, Minister for Revenue and Financial Services, 'Putting
Consumers First: Australian Financial Complaints Authority Takes Shape', Media
release, 1 May 2018. See also Australian Financial Complaints Authority, About
AFCA, https://www.afca.org.au/about-afca/
(accessed 1 November 2018).
Chapter 2 - Previous inquiries
[1]
See Australian Government, Australian Government Response to the ASIC
Enforcement Review Taskforce Report, April 2018, https://static.treasury.gov.au/uploads/sites/1/2018/04/Aus-Gov-response-ASIC-Enforcement-Review-Taskforce-Report.pdf
(accessed 25 June 2018).
[2]
See Senate Economics References Committee, Agribusiness Managed
Investment Schemes: Bitter Harvest, March 2016.
[3]
Life Insurance Act 1995, s. 9(1).
[4]
Senate Economics References Committee, Australia's General Insurance
Industry: Sapping Consumers of the Will to Compare, August 2017, p.
41
[5]
Insurance Council of Australia, Final Report: Review of the General
Insurance Code of Practice, June 2018, pp. 6, 10.
[6]
Insurance Council of Australia, Final Report: Review of the General
Insurance Code of Practice, June 2018, p. 100.
[7]
Australian Securities and Investments Commission, Report 413: Review
of Retail Life Insurance Advice, October 2014, p. 5; David Murray, Financial
System Inquiry: Final Report, November 2014, p. 217; John Trowbridge, Review
of Retail Life Insurance Advice: Final Report, March 2015, p. 6.
[8]
Parliamentary Joint Committee on Corporations and Financial Services, Life
Insurance Industry, March 2018, p. ix.
[9]
Parliamentary Joint Committee on Corporations and Financial Services, Life
Insurance Industry, March 2018, p. 47.
[10]
ASIC's Money Smart, Types of super funds, 18 October 2017, https://www.moneysmart.gov.au/superannuation-and-retirement/how-super-works/choosing-a-super-fund/types-of-super-funds
(accessed 22 June 2018).
[11]
Treasury, MySuper, https://treasury.gov.au/programs-and-initiatives-superannuation/mysuper/
(accessed 25 June 2018).
[12]
Senate Economics References Committee, Superbad – Wage Theft and
Non-Compliance of the Superannuation Guarantee, May 2017.
[13]
Parliamentary Joint Committee on Corporations and Financial Services, Impairment
of Customer Loans, May 2016, p. ix. See also Australian Small Business and
Family Enterprise Ombudsman, Inquiry into Small Business Loans, December
2016, p. 6; Select Committee on Lending to Primary Production Customers, Final
Report, December 2017, p. 43.
[14]
Royal Commission into Misconduct in the Banking, Superannuation and
Financial Services Industry (Financial Services Royal Commission), Interim Report,
Volume 1, September 2018, p. 327.
[15]
Financial Services Royal Commission, Interim Report, Volume 1,
September 2018, p. 329.
[16]
Financial Services Royal Commission, Interim Report, Volume 1,
September 2018, p. 333.
[17]
Financial Services Royal Commission, Interim Report, Volume 1,
September 2018, p. 335.
[18]
Financial Services Royal Commission, Interim Report, Volume 1,
September 2018, p. 337.
[19]
Financial Services Royal Commission, Interim Report, Volume 1,
September 2018, p. 339.
[20]
Financial Services Royal Commission, Interim Report, Volume 1,
September 2018, p. 340.
[21]
See Royal Commission into Misconduct in the Banking, Superannuation and
Financial Services Industry, Public Hearings (as at 29 October 2018), https://financialservices.royalcommission.gov.au/public-hearings/Pages/default.aspx
(accessed 29 October 2018).
Chapter 3 - Regulation and oversight of the current consumer protection system
[1]
In March 2018, the Treasury Laws Amendment (Putting Consumers First –
Establishment of the Australian Financial Complaints Authority) Act 2018
was enacted to create the Australian Financial Complaints Authority (AFCA). See
Corporations Act 2001, Sect 761A; and the Hon Kelly O'Dwyer MP, Minister
for Revenue and Financial Services, 'Putting Consumers First: Australian
Financial Complaints Authority Takes Shape', Media release, 1 May 2018.
See also Australian Financial Complaints Authority, About AFCA, https://www.afca.org.au/about-afca/
(accessed 1 November 2018).
[2]
Australian Consumer Law, Legislation: The Australian Consumer Law,
http://consumerlaw.gov.au/the-australian-consumer-law/legislation/
(accessed 30 October 2018).
[3]
Corporations Act 2001, para 912A(2)(c); Corporations Regulations,
section 7.6.02AAA(1).
[4] For a complete list, see
APRA, Enabling legislation, https://www.apra.gov.au/enabling-legislation
(accessed 30 October 2018); Australian Securities and Investments Commission, Laws
we administer, https://asic.gov.au/about-asic/what-we-do/laws-we-administer/
(accessed 30 October 2018).
[5] Australian Institute of
Superannuation Trustees (AIST), Submission 9, pp. 13–14; Stan Wallis, Financial
System Inquiry, March 1997, Recommendations 1 and 31.
[6]
Australian Taxation Office, How your SMSF is regulated, 16 June
2015, https://www.ato.gov.au/Super/Self-managed-super-funds/Administering-and-reporting/How-we-help-and-regulate-SMSFs/How-your-SMSF-is-regulated/
(accessed 30 October 2018).
[7]
Memorandum of Understanding between the Australian Securities and
Investments Commission and the Australian Competition and Consumer Commission,
p. 1, https://download.asic.gov.au/media/2065149/mou-accc-asic.pdf
(accessed 30 October 2018).
[8]
Memorandum of Understanding between the Australian Securities and
Investments Commission and the Australian Competition and Consumer Commission,
p. 2, https://download.asic.gov.au/media/2065149/mou-accc-asic.pdf
(accessed 30 October 2018).
[9] APRA, About APRA, https://www.apra.gov.au/about-apra
(accessed 30 October 2018); Treasury, Australian Prudential Regulation
Authority: Section 1: Agency Overview and Resources, Portfolio Budget
Statements 2011–12, https://treasury.gov.au/publication/portfolio-budget-statements-2011-12/portfolio-budget-statements-2011-12/australian-prudential-regulation-authority/
(accessed 30 October 2018).
[10] APRA, Industry
supervision, https://www.apra.gov.au/supervision
(accessed 30 October 2018).
[11] Australian Securities and
Investments Commission (ASIC), Submission 36, p. 3.
[12] Australian Securities and
Investments Commission (ASIC), Submission 36, p. 3.
[13] Australian Securities and
Investments Commission, Regulatory Guide 165: Licensing: Internal and
External Dispute Resolution, February 2018.
[14] Australian Securities and
Investments Commission (ASIC), Submission 36, pp. 4–5.
[15] Australian Securities and
Investments Commission (ASIC), Submission 36, pp. 5, 97.
[16] Australian Securities and
Investments Commission (ASIC), Submission 36, p. 73.
[17] Australian Securities and
Investments Commission (ASIC), Submission 36, p. 71.
[18] Australian Securities and
Investments Commission (ASIC), Submission 36, p. 62.
[19] Australian Securities and
Investments Commission (ASIC), Submission 36, p. 62.
[20] Australian Securities and
Investments Commission (ASIC), Submission 36, p. 63; Australian
Securities and Investments Commission (ASIC), Regulatory Guide 139: Approval
and Oversight of External Dispute Resolution Schemes, June 2013, p. 5.
[21]
Australian Securities and Investments Commission (ASIC), Submission 36,
p. 73.
[22]
Australian Securities and Investments Commission (ASIC), Submission 36,
p. 62.
[23] Mr Shane
Tregillis, Chief Ombudsman, Financial Ombudsman Service Australia,
Senate Hansard, 26 April 2017, p. 27.
[24]
Financial Ombudsman Service Australia, Our board, http://fos.org.au/about-us/our-board/
(accessed 26 June 2018).
[25]
Financial Ombudsman Service Australia, Submission to Review of the
Financial System External Dispute Resolution Framework, October 2016, http://fos.org.au/custom/files/docs/fos-submission-to-edr-review.pdf
(accessed 30 October 2018), p. 12.
[26]
Financial Ombudsman Service Australia, Fact Sheet: How FOS Resolves
Disputes and Our Terms of Reference, https://www.fos.org.au/custom/files/docs/fact_sheet_our_dispute_process_and_terms_of_referencepdf.pdf
(accessed 30 October 2018), p. 2.
[27] Mr Shane Tregillis, Chief
Ombudsman, Financial Ombudsman Service Australia, Senate Hansard, 26
April 2017, p. 26.
[28]
Financial Ombudsman Service Australia, The Financial Ombudsman Service
Circular: Unpaid determinations update, Issue 28 – February 2017, https://www.fos.org.au/fos-circular-28-home/fos-news/unpaid-determinations-update/
(accessed 30 October 2018).
[29] Mr Shane Tregillis, Chief
Ombudsman, Financial Ombudsman Service Australia, Committee Hansard, 26
April 2017, p. 30.
[30]
Financial Ombudsman Service Australia, The Financial Ombudsman Service
Circular: Unpaid determinations, Special issue – April 2014, https://www.fos.org.au/the-circular-special-issue-april-2014/fos-forum/unpaid-determinations/
(accessed 30 October 2018).
[31]
Credit and Investments Ombudsman Limited, Submission 67, pp. 1–2.
[32]
Credit & Investments Ombudsman, CIO rules, https://www.cio.org.au/about-us/cio-rules.html
(accessed 27 June 2018); Credit and Investments Ombudsman Limited, Credit
and Investments Ombudsman Rules, 10th edition, 15 August 2016,
p. 7.
[33]
Australian Securities and Investments Commission (ASIC), Submission 36,
p. 98.
[34] Credit & Investments
Ombudsman, Submission to Review into Dispute Resolution and Complaints
Framework, pp. 6–7, https://www.cio.org.au/assets/27886928/Submission%20-%20Last%20Resort%20Compensation%20Scheme%20-%20June%202017.pdf
(accessed 30 October
2018).
[35]
Superannuation Complaints Tribunal, What we do, http://www.sct.gov.au/pages/about-us/what-we-do
(accessed 30 October 2018).
[36]
Australian Securities and Investments Commission (ASIC), Submission 36,
p. 73.
[37] Australian Securities and
Investments Commission (ASIC), Submission 36, p. 63; Australian
Securities and Investments Commission (ASIC), Regulatory Guide 139: Approval
and Oversight of External Dispute Resolution Schemes, June 2013, p. 5.
[38] The Treasury, Review of
the Financial System External Dispute Resolution Framework: Consultation on the
Financial System External Dispute Resolution Framework, September 2016,
p. 24
[39]
Parliamentary Library, Bills Digest No. 55, 2017–18: Treasury Laws
Amendment (Putting Consumers First – Establishment of the Australian Financial
Complaints Authority) Bill 2017, 4 December 2017, p. 5.
[40] Australian
Financial Complaints Authority (AFCA), Complaints Resolution Scheme Rules, 1 November 2018,
https://www.afca.org.au/custom/files/docs/20180920-afca-rules.pdf
(accessed 30 October 2018), pp. 26–27.
[41] Australian Financial Complaints
Authority (AFCA), Complaints Resolution Scheme Rules, 1 November 2018,
https://www.afca.org.au/custom/files/docs/20180920-afca-rules.pdf
(accessed 30 October 2018), p. 35.
[42] Australian Financial
Complaints Authority (AFCA), Complaints Resolution Scheme Rules, 1 November 2018,
https://www.afca.org.au/custom/files/docs/20180920-afca-rules.pdf
(accessed 30 October 2018), p. 31.
Chapter 4 - Issues raised in the inquiry
[1]
See Ms Naomi Halpern, Private capacity, and Ms Susan Henry, Chair, Holt
Norman Ashman Baker Action Group, Committee Hansard, 22 February 2018,
pp. 35–44.
[2] Australian Securities and
Investments Commission (ASIC), '12-236MR ASIC Bans Victorian Financial Adviser
for Failing to Comply with Financial Services Laws', Media release 12-236MR,
25 September 2012.
[3] Mr Mark Korda, Managing
Partner, Registered Liquidator, KordaMentha, Committee Hansard, 22
February 2018, p. 45; Holt Norman Ashmen Baker Action Group, Submission 124,
pp. 25–26.
See also, for example, Ms Carolyn Thomson, Submission 78, p. 7.
[4]
See, for example, Australian Bankers' Association (ABA), Submission
15, p. 3; Ms Naomi Halpern, Submission 123, p. 25.
[5]
Association of Financial Advisers (AFA), Submission 14, p. 12.
[6]
ASIC, Submission 36, p. 98.
[7]
Adele Ferguson, 'Bank compensation schemes need scrutiny too', Australian
Financial Review, 7 October 2018, https://www.afr.com/business/banking-and-finance/bank-compo-schemes-need-scrutiny-too-20181006-h16ba3
(accessed 25 October 2018).
[8]
CHOICE, Submission 19, p. 7; Consumer Action Law Centre, Submission
46, pp. 26–27; Financial Ombudsman Service Australia, Submission 51,
p. 8; Financial Rights Legal Centre, Submission 52, pp. 121–126; Broome
Circle Financial Management Program, Submission 54, pp. 4–5; Name
Withheld, Submission 81, p. 5.
[9]
Community Legal Centres Queensland, Community Legal Centres New South
Wales, South Australian Council of Community Legal Services, Federation of
Community Legal Centres (Vic), Community Legal Centres Tasmania and Community
Legal Centres Association (WA), Submission 10, p. 2; Caxton Legal
Centre, Submission 5, p. 5.
[10] Ms Katherine Lane,
Co-Principal Solicitor, Financial Rights Legal Centre, Senate Hansard,
26 April 2017, p. 39.
[11]
Financial Rights Legal Centre, Submission 52, p. 126.
[12]
Financial Services Royal Commission, Interim Report, Volume 1,
September 2018, p. 52.
[13]
ASIC, Submission 36, p. 100.
[14]
For example, Ms Michelle Matheson, Submission 75, p. 2; Ms Carolyn
Thomson, Submission 78, pp. 7–8; Name Withheld, Submission 89,
p. 5.
[15]
Mr Nicholas Wright, Submission 139, p. 2.
[16]
For example, Mr Mohsen Alirezai, Submission 31, p. 5; Name
withheld, Submission 34, p. 1.
[17]
For example, Mr Brendan James, Shareholder, Cleveland Mining, Committee
Hansard, 22 February 2018, pp. 18–19; Individuals who provided
comments through CHOICE online tool, Submission 59, p. 123; Ms Michelle
Matheson, Submission 75, p. 2; Ms Carolyn Thomson, Submission
78, p. 3; Mr John Wilmott, Submission 83, p. 1; Dr Evan Jones,
Submission 87, p. 7; Banking and Finance Consumers Support Association
(Inc), Submission 94, pp. 31, 33; Ms Naomi Halpern, Submission
123, p. 9.
[18]
Financial Services Royal Commission, Interim Report, Volume 1,
September 2018, p. 145.
[19]
Caxton Legal Centre, Submission 5, p. 2.
[20]
LF Economics, Submission 18, p. 3.
[21]
Consumer Action Law Centre, Submission 46, p 18.
[22] Ms Katherine Lane,
Co-Principal Solicitor, Financial Rights Legal Centre, Senate Hansard,
26 April 2017, pp. 35, 38.
[23] Caxton Legal Centre, Submission
5, p. 2.
[24]
Introduced in 2017. See ASIC, ASIC industry funding, https://asic.gov.au/about-asic/what-we-do/how-we-operate/asic-industry-funding/
(accessed 1 November 2018).
[25]
Ms Katherine Lane, Co-Principal Solicitor, Financial Rights Legal Centre, Senate
Hansard, 26 April 2017, p. 41.
[26]
Association of Financial Advisers (AFA), Submission 14, p. 2.
[27]
The Treasury, Taskforce report, https://treasury.gov.au/review/asic-enforcement-review/r2018-282438/
(accessed 1 November 2018).
[28]
The Treasury, Taskforce report, https://treasury.gov.au/review/asic-enforcement-review/r2018-282438/
(accessed 1 November 2018).
[29]
Australian Government, Australian Government Response to the ASIC
Enforcement Review Taskforce Report, April 2018, https://static.treasury.gov.au/uploads/sites/1/2018/04/Aus-Gov-response-ASIC-Enforcement-Review-Taskforce-Report.pdf
(accessed 6 July 2018).
[30]
Financial Services Royal Commission, Interim Report, Volume 1,
September 2018, p. xix.
[31]
Financial Services Royal Commission, Interim Report, Volume 1,
September 2018, p. xix.
[32]
Financial Services Royal Commission, Interim Report, Volume 1,
September 2018, p. xix.
[33]
Mr James Shipton, Chair, ASIC, Parliamentary Joint Committee on
Corporations and Financial Services, Oversight of ASIC, the Takeovers Panel and
the Corporations Legislation No.1 of the 45th Parliament (Oversight
of ASIC), Committee Hansard, 19 October 2018, p. 2.
[34]
Mr James Shipton, Chair, ASIC, Parliamentary Joint Committee on
Corporations and Financial Services, Oversight of ASIC, Committee Hansard, 19
October 2018, p. 2.
[35]
Mr James Shipton, Chair, ASIC, Parliamentary Joint Committee on
Corporations and Financial Services, Oversight of ASIC, Committee Hansard, 19
October 2018, p. 2.
[36]
Mr James Shipton, Chair, ASIC, Parliamentary Joint Committee on
Corporations and Financial Services, Oversight of ASIC, Committee Hansard, 19
October 2018, p. 2.
[37]
ASIC, Review of ASIC's Enforcement Policies, Processes and
Decision-Making Procedures, 17 October 2018, https://download.asic.gov.au/media/4910547/terms-of-reference-review-of-asic-s-enforcement-policies-processes-and-decision-making-procedures.pdf
(accessed 25 October 2018).
[38]
ASIC, Review of ASIC's Enforcement Policies, Processes and
Decision-Making Procedures, 17 October 2018, p. 2.
[39]
Mr James Shipton, Chair, ASIC, Parliamentary Joint Committee on
Corporations and Financial Services, Oversight of ASIC, Committee Hansard, 19
October 2018, p. 3.
[40]
Specific topics listed included: a new industry funding model; the unique
characteristics of Australia's financial system; the size of the financial
market; the number of financial consumers; the number of people engaged in
financial services; and the expectations of the Australian community. See Mr
James Shipton, Chair, ASIC, Parliamentary Joint Committee on
Corporations and Financial Services, Oversight of ASIC, Committee Hansard,
19 October 2018, p. 3.
[41]
Mr James Shipton, Chair, ASIC, Parliamentary Joint Committee on
Corporations and Financial Services, Oversight of ASIC, Committee Hansard, 19
October 2018, p. 3.
[42]
Australian Prudential Regulation Authority (APRA), Opening Statement – 25
October 2018, Speeches, https://www.apra.gov.au/media-centre/speeches/opening-statement-25-october-2018
(accessed 25 October 2018).
[43]
Australian Securities and Investments Commission
(ASIC), Submission 36, p. 17.
[44]
Insurance Council of Australia, Submission 8, p. 13.
[45]
Financial Ombudsman Service Australia, The Financial Ombudsman Service
Circular: Unpaid Determinations Update, Issue 28 – February 2017, https://www.fos.org.au/fos-circular-28-home/fos-news/unpaid-determinations-update/
(accessed 27 June 2018).
[46]
Association of Financial Advisers (AFA), Submission 14, p. 9.
[47]
Australian Institute of Superannuation Trustees (AIST), Submission 9,
p. 29.
[48]
Financial Planning Association of Australia (FPA), Submission 3, p.
7.
[49]
Australian Securities and Investments Commission (ASIC), ASIC
Enforcement Outcomes: July to December 2017, Report 568, February 2018, p.
13. See also ASIC, Submission 36, p. 66.
[50]
See, for example, Corporations Act 2001 (Cth), s 761GA for an
alternate definition of 'sophisticated investor'.
[51]
Corporations Act 2001 (Cth), s 708(8). Alternatively, an investor
who is a company or trust controlled by a person meeting these requirements – s
708(10).
[52]
Mr Brendan James, Shareholder, Cleveland Mining, Committee Hansard,
22 February 2018, pp. 16–17.
[53]
ASIC, Submission 36, p. 27.
[54]
Financial Planning Association of Australia (FPA), Submission 3,
pp. 8–9.
[55]
Royal Commission into Misconduct in the Banking, Superannuation and
Financial Services Industry (Financial Services Royal Commission), Interim Report,
Volume 1, September 2018, p. 73
[56]
Financial Services Royal Commission, Interim Report, Volume 1,
September 2018, p. 74.
[57] Australian Institute of
Superannuation Trustees (AIST), Submission 9, pp. 6, 28–29; CHOICE, Submission
19, p. 27; Ben Butler and Michael Roddan, 'Planners pocket commissions,
even as advice falls short', The Australian, 11 December 2017, https://www.theaustralian.com.au/business/financial-services/ombudsman-clears-adviser-despite-secret-25k-commission/news-story/a6c93717a97c6b9de60a3429ceec259e
(accessed 2 July 2018);
Australian Securities and Investments Commission (ASIC), Regulatory Guide
246: Conflicted and Other Banned Remuneration, December 2017, p. 14.
[58]
Association of Financial Advisers (AFA), Submission 14, p. 14.
[59]
Association of Financial Advisers (AFA), Submission 14, p. 16. See
also Financial Planning Association of Australia, Submission 3, p. 8.
[60]
ASIC, Submission 36, p. 20.
[61]
ASIC, Submission 36, p. 84.
[62]
ASIC, Regulatory Guide 246: Conflicted and Other Banned Remuneration,
December 2017, p. 6.
[63]
CHOICE, Submission 19, p. 25.
[64]
Mr Stephen Sedgwick, private capacity, Committee Hansard, 28 June
2017, p. 10.
[65]
Stephen Sedgwick AO, Retail Banking Remuneration Review (Sedgwick
review), April 2017, p. 28.
[66]
See recommendations 16, 17 and 18 of Stephen Sedgwick, AO, Sedgwick
review, April 2017, pp. 34–38.
[67]
Stephen Sedgwick AO, Sedgwick review, April 2017, p. 38
(Recommendation 19).
[68]
Mr Erin Turner, Acting Director, CHOICE, Committee Hansard, 26
April 2017, p. 24.
[69]
ABA, 'Banks to change the way they pay their staff', Media release, 29
April 2017, https://www.ausbanking.org.au/media/media-releases/media-release-2017/banks-to-change-the-way-they-pay-their-staff
(accessed 19 October 2018).
[70]
ASIC, Submission to Royal Commission into Misconduct in the Banking,
Superannuation and Financial Services Industry: Round 2: Financial Advice,
7 May 2018, p. 3, https://financialservices.royalcommission.gov.au/public-hearings/Documents/Round-2-written-submissions/asic.pdf
(accessed 2 July 2018).
[71]
Financial Services Royal Commission, Interim Report, Volume 1,
September 2018, p. 94.
[72]
Financial Services Royal Commission, Interim Report, Volume 1,
September 2018, p. 97.
[73]
Financial Services Royal Commission, Interim Report, Volume 1,
September 2018, p. 96.
[74]
ABA, 'Ending fees for no service, grandfathered payments', Media
release, 10 October 2018, https://www.ausbanking.org.au/media/media-releases/media-release-2018/ending-fees-for-no-service-grandfathered-payments
(accessed 19 October 2018).
[75] ASIC, Submission 36,
pp. 87–88. See also Mr Philip Field, Lead Ombudsman, Banking and Finance,
Financial Ombudsman Service Australia, Committee Hansard, 26 April 2017,
pp. 31–32.
[76]
See, for example, Consumer Action Law Centre, Submission 46, pp. 3,
15; Financial Rights Legal Centre, Submission 52, pp. 16, 112–114.
[77] Mr Alan Kirkland, Chief Executive
Officer, CHOICE, Committee Hansard, 26 April 2017, p. 18;
CHOICE, Submission 19, p. 32.
[78]
Financial Services Royal Commission, Interim Report, Volume 1,
September 2018, p. 56.
[79]
Financial Services Royal Commission, Interim Report, Volume 1, September
2018, p. 57.
[80]
Financial Services Royal Commission, Interim Report, Volume 1,
September 2018, p. 57.
[81]
Financial Services Royal Commission, Interim Report, Volume 1,
September 2018, pp. 57–58.
[82]
Financial Services Royal Commission, Interim Report, Volume 1,
September 2018, pp. 61–62.
[83] Ms Katherine Lane,
Co-Principal Solicitor, Financial Rights Legal Centre, Senate Hansard,
26 April 2017, p. 37; Mr David Carson, Corporate Regulatory Adviser, and
Mr Peter James White, Executive Director, Finance Brokers Association of
Australia, Committee Hansard, 26 April 2017, pp. 54–55. See also Mr
Mark Newberry, Submission 42, p. 2 for concerns about home loans granted
in momentarily profitable times with little due diligence conducted.
[84]
LF Economics, Submission 18, pp. 3, 6.
[85]
For home loans, car loans, credit cards and add-on insurance.
[86] Responsible lending
provisions under the National Consumer Credit Protection Act 2009 (NCCP
Act) do not apply to lending for business purposes. The exclusion of small
business is in 'recognition of the need to ensure...access to reasonably
affordable and available credit'. The interim report noted reluctance across
the banking and small business sector to adopt increased protection. See
Financial Services Royal Commission, Interim Report, Volume 1, September 2018,
pp. 162–163.
[87]
A licensee will determine a consumer is unsuitable if it is likely that
the applicant is unable to comply with the financial obligations under a
contract, or could only comply with substantial hardship. The NCCP Act
establishes necessary steps that a licensee must take before proceeding with a
credit contract, such as making reasonable inquiries about the consumer's
requirements and objectives and the consumer's financial situation, and
verifying the consumer's financial situation. See Financial Services Royal
Commission, Interim Report, Volume 1, September 2018, pp. 22–30 for
further details about the NCCP Act requirements.
[88]
Financial Services Royal Commission, Interim report, Volume 1,
September 2018, p. 22.
[89]
For matters related to home loans see Financial Services Royal Commission,
Interim Report, Volume 1, September 2018, pp. 43–45.
[90]
Financial Services Royal Commission, Interim Report, Volume 1,
September 2018, p. 70.
[91]
Financial Services Royal Commission, Interim Report, Volume 1,
September 2018, p. 71.
[92]
Australian Small Business and Family Enterprise Ombudsman, Submission
11, pp. 5–6.
[93]
Parliamentary Joint Committee on Corporations and Financial Services, Impairment
of customer loans, May 2016, p. 101.
[94]
Parliamentary Joint Committee on Corporations and Financial Services, Impairment
of customer loans, May 2016, p. 104.
[95]
Parliamentary Joint Committee on Corporations and Financial Services, Impairment
of customer loans, May 2016, p. 137, Recommendation 6.
[96]
Australian Banking Association, Banking Code of Practice,
commencing 1 July 2019, p. 31, cl. 90, https://www.ausbanking.org.au/images/uploads/Banking_Code_of_Practice_2019_web.pdf
(accessed 8 November 2018); Australian Securities & Investments Commission,
'18-223MR ASIC approves the Banking Code of Practice', 31 July 2018, https://asic.gov.au/about-asic/news-centre/find-a-media-release/2018-releases/18-223mr-asic-approves-the-banking-code-of-practice/
(accessed 8 November 2018).
[97]
Australian Banking Association, Banking Code of Practice,
commencing 1 July 2019, p. 1, https://www.ausbanking.org.au/images/uploads/Banking_Code_of_Practice_2019_web.pdf
(accessed 8 November 2018).
[98]
Financial Rights Legal Centre, Submission 52, pp. 5, 54.
[99]
Insurance Council of Australia, Submission 8, p. 3.
[100] Insurance Council of
Australia, Submission 8, p. 4.
[101] Consumer Action Law Centre, Submission
46, pp. 6–8; Financial Rights Legal Centre, Submission 52, pp.
43–45.
[102] ASIC, Submission 36,
p. 39.
[103] ASIC, Submission 36,
pp. 84–85. See also Ms Susan Quinn, Senior Policy Officer, Consumer Action Law
Centre, Committee Hansard, 26 April 2017, pp. 33–34.
[104] Financial Services Royal
Commission, Interim Report, Volume 1, September 2018, p. 37.
[105] Public Interest Advocacy
Centre Ltd, Submission 25, p. 1.
[106] Beyondblue, Submission 20,
p. 3.
[107] Beyondblue, Submission 20,
pp. 5, 9.
[108] Public Interest Advocacy
Centre Ltd, Submission 25, pp. 27–29.
[109] Pat McGrath, 'Former
insurance executive wants probe into treatment of customers with mental
illness', ABC News, 14 March 2018, http://www.abc.net.au/news/2018-03-14/former-insurance-exec-probe-treatment-customers-mental-illness/9542496
(accessed 8 November 2018).
[110] See, Financial Services
Royal Commission, Transcripts and Witness list, Round 6, https://financialservices.royalcommission.gov.au/public-hearings/Pages/transcripts.aspx
(accessed 29 October 2018).
[111] ASIC, Submission 36,
p. 41; Financial Counselling Australia (FCA), Submission 91, p. 11;
Financial Rights Legal Centre, Submission 52, p. 23.
[112] Financial Rights Legal
Centre, Submission 52, pp. 23, 41.
[113] Broome Circle Financial
Management Program, Submission 54, pp. 4–5.
[114] Financial Services Royal
Commission, Interim Report, Volume 1, September 2018, pp. 259–262.
[115] Financial Services Royal
Commission, Interim Report, Volume 1, September 2018, pp. 264.
[116] Financial Services Royal
Commission, Interim Report, Volume 1, September 2018, pp. 265.
[117] For example, Care Inc.
Financial Counselling Service, Submission 21, pp. 3, 6; CHOICE, Submission
19, p. 17.
[118] Ms Erin Turner, Acting
Director – Content, Campaigns and Communications, CHOICE, Committee Hansard,
26 April 2017, p. 19.
[119] Ms Susan Quinn, Senior
Policy Officer, Consumer Action Law Centre, Committee Hansard,
26 April 2017, p. 33.
[120] Financial Rights Legal
Centre, Submission 52, p. 97; Ms Katherine Temple, Senior Policy
Officer, Consumer Action Law Centre, Committee Hansard, 26 April 2017,
p. 36.
[121] ASIC, Report 580: Credit
Card Lending in Australia, July 2018, pp. 7, 9, 10; Senate Economics
References Committee, Interest rates and informed choice in the Australian
credit card market, December 2015.
[122] Financial Services Royal
Commission, Interim Report, Volume 1, September 2018, p. 36.
[123] The Australia and New
Zealand Banking Group, the Commonwealth Bank of Australia, National Australia
Bank and Westpac.
[124] Financial Services Royal
Commission, Interim Report, Volume 1, September 2018, p. 42.
[125] Financial Services Royal
Commission, Interim Report, Volume 1, September 2018, p. 69.
[126] Financial Services Royal
Commission, Interim Report, Volume 1, September 2018, pp. 52–53.
[127] Care Inc. Financial
Counselling Service, Submission 21, p. 13.
[128] Financial Counselling
Australia (FCA), Submission 91, pp. 2, 3.
[129] Financial Services Royal
Commission, Interim Report, Volume 1, September 2018, p. 54.
[130] Financial Services Royal
Commission, Interim Report, Volume 1, September 2018, p. 54.
[131] Consumer Action Law Centre, Submission
46, pp. 15–18; Financial Rights Legal Centre, Submission 52, p. 23;
Broome Circle Financial Management Program, Submission 54, pp. 2–4.
[132] Financial Counselling
Australia (FCA), Submission 91, p. 11; ASIC, Submission
36, p. 50; Care Inc. Financial Counselling Service, Submission
21, pp. 11–12;
[133] ASIC, Submission 36,
p. 50.
[134] Financial Services Royal
Commission, final transcript for Day 35, Ms Rowena Orr, 2 July 2018,
p. 3695, ln 26–33.
[135] Financial Counselling
Australia (FCA), Submission 91, p. 4. See also Financial Rights Legal
Centre, Submission 52, pp. 26–28.
[136] Financial Counselling
Australia (FCA), Submission 91, p. 7.
[137] ASIC, Submission 36,
pp. 64–65; The Treasury, Review of the Financial System External Dispute
Resolution and Complaints Framework: Final Report, April 2017, p. 17.
[138] See Ms Naomi Halpern,
Private capacity, and Ms Susan Henry, Chair, Holt Norman Ashman Baker Action
Group, Committee Hansard, 22 February 2018, pp. 35–44; Dr Evan Jones, Submission
87, p. 9; Name Withheld, Submission 89; Name Withheld, Submission
92; Name Withheld, Submission
118; Mr Lynton Freeman, Submission 128, p. 19.
[139] Parliamentary Joint
Committee on Corporations and Financial Services, Impairment of customer
loans, May 2016, p. 107.
[140] Parliamentary Joint
Committee on Corporations and Financial Services, Impairment of customer
loans, May 2016, p. 119.
[141] Parliamentary Joint
Committee on Corporations and Financial Services, Impairment of customer
loans, May 2016, p. 123, Recommendation 9; Australian Prudential Regulation
Authority, Prudential Standard APS 220: Credit Quality, January 2015, https://www.apra.gov.au/sites/default/files/141120-APS-220.pdf
(accessed 8 November 2018).
[142] Financial Services Royal
Commission, Interim Report, Volume 1, September 2018, p. 238.
[143] Financial Services Royal
Commission, Interim Report, Volume 1, September 2018, p. 239.
[144] Financial Services Royal
Commission, Interim Report, Volume 1, September 2018, p. 241.
Chapter 5 - Conclusion
[1]
Mr Brian Hartzer, Chief Executive Officer (CEO) and Managing Director,
Westpac Group, House of Representatives Standing Committee on Economics, Review
of the four major banks (second report), Committee Hansard, 8 March 2017,
p. 14.
[2]
Mr Brian Hartzer, Chief Executive Officer (CEO) and Managing Director,
Westpac Group, House of Representatives Standing Committee on Economics, Review
of the four major banks (second report), Committee Hansard, 8 March
2017, p. 14.
[3]
Mr Brian Hartzer, CEO and Managing Director, Westpac Group, House of
Representatives Standing Committee on Economics, Review of the four major banks
(third report), Committee Hansard, 11 October 2017, p. 28.
[4]
Mr Shayne Elliott, CEO, Australia and New Zealand Banking Group (ANZ),
House of Representatives Standing Committee on Economics, Review of the four
major banks (third report), Committee Hansard, 11 October
2017, p. 59.
[5]
Mr Andrew Thorburn, CEO, National Australia Bank (NAB), House of
Representatives Standing Committee on Economics, Review of the four major banks
(second report), Committee Hansard, 3 March 2017, p. 32.
[6]
Mr Ian Narev, former CEO, Commonwealth Bank of Australia (CBA), House of
Representatives Standing Committee on Economics, Review of the four major banks
(second report), Committee Hansard, 7 March 2017, p. 16.
[7]
Australian Bankers Association (ABA), Submission 15, p. 1.
[8]
ABA, Submission 15, p. 1.
[9]
ABA, Submission 15, p. 2.
[10]
ABA, Independent Governance Expert Report, Report 8,
17 April 2018, p. ii.
[11]
Mr Steve Munchenberg, CEO, ABA, House of Representatives Standing
Committee on Economics, Review of the four major banks (second report), Committee
Hansard, 8 March 2017, p. 43.
[12]
Mr Steve Munchenberg, CEO, ABA, House of Representatives Standing
Committee on Economics, Review of the four major banks (second report), Committee
Hansard, 8 March 2017, p. 44.
[13]
Senator the Honourable Mathias Cormann, Minister for Finance, Sky New –
Sunday Agenda, 9 October 2016, https://www.financeminister.gov.au/transcript/2016/10/09/sky-news-sunday-agenda
(accessed 22 October 2018).
[14]
Senator the Honourable Mathias Cormann, Minister for Finance, Doorstop
– Mural Hall, 1 December 2017, https://www.financeminister.gov.au/transcript/2017/12/01/doorstop-mural-hall
(accessed 22 October 2018).
[15]
Ms Julia Banks MP, House of Representatives Standing Committee on
Economics, Review of the four major banks (second report), Committee Hansard,
8 March 2017, p. 48.
[16]
Ms Julia Banks MP, House of Representatives Standing Committee on
Economics, Review of the four major banks (second report), Committee Hansard,
7 March 2017, pp. 22–23.
[17]
Joint CEOs and Chairs letter, 30 November 2017, https://media.anz.com/posts/2017/11/joint-ceos-and-chairs-letter
(accessed 1 November 2018).
[18] The Hon.
Scott Morrison MP, Treasurer, 'Royal Commission – Banks and financial services:
Joint media release with The Hon Malcolm Turnbull MP, Prime Minister,' Media
release, 31 November 2017; Lucy Sweeney and Louise Yaxley, 'Malcolm
Turnbull backflips on banking royal commission after big four call for inquiry
to restore public faith', ABC News, 30 November 2017, https://www.abc.net.au/news/2017-11-30/banking-royal-commission-announced-by-pm-after-big-four-letter/9209926
(accessed 1 November 2018).
[19]
David Chau and Emily Clark, 'Banking royal commission: How did we get here?,
ABC News, 30 November 2017, https://www.abc.net.au/news/2017-11-30/banking-royal-commission-how-did-we-get-here/9210248
(accessed 1 November 2018); SBS News, '"We've put customers
first": PM defends not setting up banking royal commission sooner', SBS
News, 22 April 2018, https://www.sbs.com.au/news/we-ve-put-customers-first-pm-defends-not-setting-up-banking-royal-commission-sooner
(accessed 1 November 2018); Adele Ferguson, 'Nationals senator Barry
O'Sullivan pushing on with banking royal commission bill', Australian
Financial Review, 19 November 2017, https://www.afr.com/business/banking-and-finance/nationals-senator-pushing-on-with-banking-royal-commission-bill-20171119-gzods2
(accessed 1 November 2018).
[20]
Royal Commission into Misconduct in the Banking, Superannuation and
Financial Services Industry (Financial Services Royal Commission), Interim Report,
Volume 1, September 2018, p. xix.
[21]
Financial Services Royal Commission, Interim Report, Volume 1,
September 2018, p. xix.
[22]
Financial Services Royal Commission, Interim Report, Volume 1,
September 2018, p. 122; Stephanie Chalmers, 'Commonwealth Bank charged fees to
customers who had been dead for a decade, royal commission told', ABC News,
19 April 2018, https://www.abc.net.au/news/2018-04-19/cba-charged-fees-to-customers-who-had-died-commission-hears/9675922
(accessed 5 November 2018).
[23]
Financial Services Royal Commission, Interim Report, Volume 1,
September 2018, Chapter 6; Daniel Ziffer, 'Banking royal commission: ANZ "empathy"
too late for farmers already forced off their land', ABC News, 1 July
2018, https://www.abc.net.au/news/2018-07-01/banking-royal-commission-hears-the-pain-of-farmers/9924334
(accessed 22 October 2018).
[24]
Financial Services Royal Commission, Interim Report, Volume 1,
September 2018, p. 54; Daniel Ziffer, 'Banking royal commission: Fees for the
dead and cash bribes—the greatest shocks (so far)', ABC News, 8
September 2018, https://www.abc.net.au/news/2018-09-08/banking-royal-commission-biggest-scandals/10214238
(accessed 22 October 2018).
[25]
Financial Services Royal Commission, final transcript for Day 35, P.R.
Kell, p. 5254, ln 31–34, and p. 5255, ln 35–41; Sue Lannin, 'Banking royal
commission: Banks and AMP face criminal charges and $1b in fee-for-no-service
scandal', ABC News, 17 August 2018, https://www.abc.net.au/news/2018-08-17/apra-under-fire-for-failing-to-police-superannuation-industry/10129612
(accessed 22 October 2018).
[26]
Stephanie Chalmers, 'Banks take 1726 days to realise they've broken the
law: ASIC', ABC News, 25 September 2018, https://www.abc.net.au/news/2018-09-25/asic-reveals-how-long-banks-take-to-report-breaches/10302894
(accessed 22 October 2018).
[27]
Daniel Ziffer, 'Banking royal commission: Super once-over scrapes off a
truckload of dirt', ABC News, 27 August 2018, https://www.abc.net.au/news/2018-08-27/royal-commission-super-once-over-scrapes-off-a-luck-of-muck/10168906
(accessed 22 October 2018).
[28]
Financial Services Royal Commission, Public submissions – fast facts, 28
September 2018, https://financialservices.royalcommission.gov.au/Pages/default.aspx
(accessed 25 October 2018).
[29]
See, for example, The Hon. Bill Shorten MP, Opposition Leader, 'Labor Will
Give Victims a Voice in Bank Reform', 2 October 2018, http://www.billshorten.com.au/labor_will_give_victims_a_voice_in_bank_reform_tuesday_2_october_2018
(accessed 1 November 2018); Editorial, 'Banking royal commission does
not go far enough', The Canberra Times, 29 September 2018, https://www.canberratimes.com.au/national/act/banking-royal-commission-does-not-go-far-enough-20180928-p506q7.html
(accessed 25 October 2018).
[30]
See, for example, Editorial, 'Banking royal commission does not go
far enough', The Canberra Times, 29 September 2018, https://www.canberratimes.com.au/national/act/banking-royal-commission-does-not-go-far-enough-20180928-p506q7.html
(accessed 25 October 2018).
[31]
Mr Matthew Comyn, CEO and Managing Director, CBA, House of Representatives
Standing Committee on Economics, Review of the four major banks (fourth hearing),
Committee Hansard, 11 October 2018, p. 1.
[32]
Mr Matthew Comyn, CEO and Managing Director, CBA, House of Representatives
Standing Committee on Economics, Review of the four major banks (third report),
Committee Hansard, 11 October 2018, p. 2.
[33]
Mr Brian Hartzer, CEO and Managing Director, Westpac Group, House of
Representatives Standing Committee on Economics, Review of the four major banks
(third report), Committee Hansard, 11 October 2017, p. 28.
[34]
Mr Brian Hartzer, CEO and Managing Director, Westpac Group, House of
Representatives Standing Committee on Economics, Review of the four major banks
(third report), Committee Hansard, 11 October 2018, p. 35.
[35]
Mr Shayne Elliott, CEO, Australia and New Zealand Banking Group (ANZ),
House of Representatives Standing Committee on Economics, Review of the four
major banks (third report), Committee Hansard, 11 October
2017, p. 59.
[36]
Mr Shayne Elliott, CEO, ANZ, House of Representatives Standing Committee
on Economics, Review of Australia's four major banks (fourth hearing), Committee
Hansard, 12 October 2018, p. 1.
[37]
Mr Andrew Thorburn, Group CEO and Managing Director, NAB, House of Representatives
Standing Committee on Economics, Review of the four major banks (fourth
hearing), Committee Hansard, 19 October 2018, p. 2.
[38]
Mr Andrew Thorburn, CEO and Managing Director, NAB, House of
Representatives Standing Committee on Economics, Review of the four major banks
(fourth hearing), Committee Hansard, 19 October 2018, p. 3.
[39]
Senator James McGrath, Senate Hansard, 29 November 2016, p. 3568.
[40]
Financial Services Royal Commission, final transcript for Day 35, Ms
Rowena Orr, 2 July 2018, p. 3695, ln 26–33; Financial Services Royal
Commission, final transcript for Day 30, Ms Rowena Orr, 25 June 2018, p. 3077,
ln 41–44.
[41]
Parliamentary Joint Committee on Corporations and Financial Services, Impairment
of customer loans, May 2016, p. 123, Recommendation 9; Australian
Prudential Regulation Authority, Prudential Standard APS 220: Credit Quality,
January 2015, https://www.apra.gov.au/sites/default/files/141120-APS-220.pdf
(accessed 8 November 2018).
Coalition Senators' Additional Comments
[1]
The Hon Mr Joe Jockey MP, [former] Treasurer, ' Financial System
Inquiry', Media release, 20 December 2013.
[2]
Christopher Joye, 'Bill Shorten has unconvincing case for a royal
commission', Australian Financial Review, April 11 2016. Available at https://www.afr.com/business/banking-and-finance/bill-shorten-has-unconvincing-case-for-a-royal-commission-20160410-go2t9p
(accessed 15 November 2018).
[3]
Ian Harper, Peter Anderson, Su McCluskey and Michael O'Bryan, Competition
Policy Review, Final report, March 2015, p. 62.
[4]
Royal Commission into Misconduct in the
Banking, Superannuation and Financial Services Industry (Financial Services
Royal Commission), Interim Report, Volume 1, September 2018, p. 45.
[5]
Royal Commission into Misconduct in the
Banking, Superannuation and Financial Services Industry (Financial Services
Royal Commission), Interim Report, Volume 1, September 2018, p. 50.
[6]
Royal Commission into Misconduct in the
Banking, Superannuation and Financial Services Industry (Financial Services
Royal Commission), Interim Report, Volume 1, September 2018, p. 50.
Australian Greens Senators' Dissenting Report
[1] Department of the Prime Minister and Cabinet, PM
Transcripts, 'Press Conference with the Hon. Scott Morrison MP, Treasurer', 30
November 2017.
[3] ABS 5204.0 – Australian System of National Accounts,
2016–17.
[4] See John A. Kay, Other People's Money: Masters of
the Universe or Servants of the People?, London, Profile Books, 2015.
[6] Some of the proposals included in this submission
duplicate that detailed in the Greens' submission to the Round 5 hearings on
superannuation.
[7] Royal Commission into Misconduct in the Banking,
Superannuation and Financial Services Industry (Financial Services Royal
Commission), Interim Report, Volume 1, September 2018, p. 78.
[9] Productivity Commission, Competition in the
Australian Financial System – Final Report, June 2018.
[10] Ibid
[11] ACCC, Residential Mortgage Price Inquiry – Interim
Report, March 2018.
[12] Rod Sims, 'Synchronised swimming versus competition in
banking', Speech to AFR Banking and Wealth Summit, 5 April 2018.
[13] Financial Services Royal Commission, Interim Report,
Volume 1, September 2018, p. 268.
[14] Financial Services Royal Commission, Interim Report,
Volume 1, September 2018, pp. 269–70.
[15] Terms of Reference, section k.
[16] Financial Services Royal Commission, Interim Report,
Volume 1, September 2018, p. 302.
[17] Tim Battin, Abandoning Keynes: Australia's Capital
Mistake, Palgrave Macmillan, 2014, p. 36, citing Ben Chifley, 1937.
[18] World Bank, Policy Research Working Paper 8297, Bank
Ownership: Trends and Implications, January 2018.
[19] Ibid.
[20] Joshua Gans, Nicholas Gruen, Christopher Joye, Stephen
King, John Quiggin and Sam Wylie, 'Rules underpin prosperity', Sydney
Morning Herald, 8 July 2018.
[21] Ibid.
[22] The Greens, 'A People's Bank', https://greens.org.au/sites/greens.org.au/files/People%27s%20Bank%202018%20Announcement%20FINALv2.pdf (accessed 15 November 2018).
[23] Lateral Economics, Submission 39, Productivity
Commission Inquiry into Competition in the Australian Financial System, 2017.
[24] ANZ Media Release, 'Update on Australia Post
discussions', 15 October 2015.
[25] Productivity Commission, Competition in the
Australian Financial System – Final Report, June 2018.
[26] IMF, A Fair And Substantial Contribution By The
Financial Sector – Final Report For The G-20, June 2010.
[27] Ibid.
[28] Productivity Commission, Competition in the
Australian Financial System – Final Report, June 2018.
[29] RBA, RBAFOI-151609 Documents Released.
[30]
Productivity Commission, Competition in the
Australian Financial System: Productivity Commission Inquiry Report, no.
89, 29 June 2018, p. 192.
[31] Productivity Commission, Competition in the
Australian Financial System – Final Report, June 2018.
[33] Mr Wayne Byres, Chairman, Australian Prudential
Regulation Authority, Senate Economic Legislation Committee, Senate Hansard,
Budget Estimates, 30 May 2017, p. 147.
[34] Ibid.
[35] Productivity Commission, Competition in the
Australian Financial System – Final Report, June 2018.
[36] Sorapop Kiatpongsan and Michael I. Norton, 'How much (more)
should CEOs make? A universal desire for more equal pay', Perspectives on
Psychological Science, vol. 9, no. 6, November 2014, pp. 587–593.
[37] Michael J. Cooper, Huseyin Gulen and P. Raghavendra
Rau, 'Performance for pay? The relation between CEO incentive compensation and
future stock', Social Sciences Research Network, 2014; Ric
Marshall and Linda-Eling Lee, 'Are CEOs paid for performance? Evaluating the
effectiveness of equity incentives', IRRC Institute, 7 December2016.
[38] The Knesset, 'Finance Committee approves bill limiting
the pay of executives in financial corporations', Media release, 17 March
2016.
[39] Ibid.
[40] Financial Services Royal Commission, Interim Report,
Volume 1, September 2018, p. 79.
[41] Financial Services Royal Commission, Interim Report,
Volume 1, September 2018, p. 269.
[42] See George A. Akerlof and Robert J. Shiller, Phishing
for Phools: The Economics of Manipulation and Deception, Princeton and
Oxford, Princeton University Press, 2015.
[43] Australian Competition and Consumer Commission, Consumer
guarantees, https://www.accc.gov.au/consumers/consumer-rights-guarantees/consumer-guarantees (accessed 15 November 2018).
[44] Senate Economics
Reference Committee, Performance of the Australian Securities and
Investments Commission, 2014.
[45] Senate Economics
Reference Committee, Bitter Harvest: Agribusiness managed investment schemes,
2016.
[46] George A. Akerlof and Robert J. Shiller, Phishing
for Phools: The Economics of Manipulation and Deception, Princeton and
Oxford, Princeton University Press, 2015.
[47] Financial
Systems Inquiry – Final Report, November
2014.
[48] See Adrian Blundell-Wignall, Paul Atkinson and
Caroline Roulet, 'Bank business models and the separation issue', OECD
Journal: Financial Market Trends, Volume 2013/2, 2014.
[49] Deloitte, Centre for Regulatory Strategy, Global Bank
Governance in a Structurally Reformed World: Too Complex to Manage?
September 2017, p. 2.
[51] Greg Jericho, 'We can't take on any more debt – so
what else will drive the economy?' The Guardian, 20 February 2018.
[52] Financial
Systems Inquiry – Final Report, November
2014.
[53] Productivity Commission, Rising inequality? A
stocktake of the evidence, August 2018.
[54] See International Monetary Fund, IMF's work on
income inequality, https://www.imf.org/external/np/fad/inequality/ (accessed 15 November 2018).
[57] Productivity Commission, Competition in the
Australian Financial System – Final Report, June 2018.
[58] Financial Services Royal Commission, Interim Report,
Volume 1, September 2018, p. 77.
[59] See Greens Dissenting Report, Senate Economics
Reference Committee, Bitter Harvest: Agribusines managed investment schemes,
2016.
[60] Mr Greg Medcraft, Chairman, Australian Securities and
Investments Commission, Senate Economic Legislation Committee, Supplementary
Budget Estimates, Senate Hansard, 26 October 2017, p. 30.
[61] Financial Services Royal Commission, Interim Report,
Volume 1, September 2018, p. 269.
[62] Financial Services Royal Commission, Interim Report,
Volume 1, September 2018, p. 270.
[63] Australian Securities and Investments Commission
Act 2001, s 1(2).
[66] Ibid.
[67] Financial Services Royal Commission, final transcript
for day 40, Mr Michael Hodge, Monday 6 August 2018, p. 4161, ln 39–43.
[68] Senate Economics Legislation Committee, Budget
Estimates, May 2018.
[69] Financial Services Royal Commission, Interim Report,
Volume 1, September 2018, Volume 1, p 280.
[71] Jessica Irvine, "'Stop being bastards": How
the royal commission could reform banks', Sydney Morning Herald, 22 September
2018.
[73] Competition and Consumer Act, 2010, s 2.
[74] Patrick Durkin, 'Pressure
builds to unleash ACCC on the banks', Australian Financial Review, 14
October 2018.
[75] Alex Erskine, Funding
Australia's Future: Regulating the Australian Financial System, July 2014,
p. 7.
[76] ACCC, Residential Mortgage Price Inquiry – Interim
Report, March 2018.
[77] Financial Services Royal Commission, Interim Report,
Volume 1, September 2018, p 281.
[78] Productivity Commission, Competition in the
Australian Financial System – Final Report, June 2018.
[79] See Dick Bryan and Mike Rafferty, Risking Together:
How Finance is Dominating Everyday Life in Australia, Sydney University
Press, 2018.
[80] Patrick Durkin, 'Pressure builds to unleash ACCC on the banks', Australian
Financial Review, 14 October 2018.
[81] See Alex Erskine, Funding
Australia's Future: Regulating the Australian Financial System, July 2014.
[82] Productivity Commission, Competition in the
Australian Financial System – Final Report, June 2018.
[83] Financial
Systems Inquiry – Final Report,
Recommendation 27 — Regulator accountability, 2014.
[84] Sam Kingston, Maddocks, Excluding a dispute – What can the Financial Ombudsman
Service consider? https://www.maddocks.com.au/excluding-dispute-can-financial-ombudsman-service-consider/ (accessed 15 November 2018).
[85] Mr Peter Kell, Deputy Chairman, Australian Securities
and Investment Commission, Senate Economics Legislation Committee, Additional
Estimates, Senate Hansard, 11 February 2016, p. 19.
[86] See Treasury Laws Amendment (Putting Consumers
First – Establishment of the Australian Financial Complaints Authority) Act
2018.
[87] The Treasury, Review of the financial system
external dispute resolution and complaints framework – Supplementary Final
Report, September 2017.