The government has blocked Labor from introducing a royal commission into the financial services industry, despite the ongoing investigations and regulatory change.
Youi is the most recent example of ongoing wrongdoings by some industry participants, though ASIC is working as hard as ever to weed out bad apples and restore faith in financial services. It is an uphill battle, it would seem, with an industry left to its own devices for far too long.
Opposition leader Bill Shorten requested a suspension of standing orders in the lower house to call for a royal commissions. The government has a new inquiry into small business lending practices, among other reforms, The Guardian reported.
Shorten wanted duty of care to be investigated, along with Australian regulators' willingness to stop illegal behaviour. Shorten also wanted to know how cultural and ethical standards combined with business structures in Australian financial services affected business behaviour.
“Despite several inquiries, new powers, new resources, and a financial ombudsman service, the rorts and the rip offs continue,” Shorten said, according to The Guardian.
The government responded via Kelly O'Dwyer, the minister for revenue and financial services, who said the new inquiry - set up by the Small Business and Family Enterprise Ombudsman - will address further issues as necessary.