It has been announced by the Federal Government that it will establish a Royal Commission into the alleged misconduct surrounding Australia’s banks, and will also cover life insurers and other financial service providers.
Scott Morrison, federal treasurer said the inquiry will examine the conduct of the insurers, superannuation funds, banks, and financial service providers, and measure how well equipped regulators are to address and identify misconduct.
The terms of reference released by the Treasurer says the Royal Commission will examine the extent, effect, and nature of the misconduct by the financial services industry, including its employees, directors, officers, and everyone acting on their behalf.
Any practices, behaviours, conduct, or business activity that falls below the community standards and expectations will also be under examination.
Morrison said the reason the Royal Commission was being established is due to the ongoing speculation and fear-mongering about the forms of examination of the banking sector risks undermining Australia’s world-class reputation.
The inquiry will not delay, limit, or deter and announced or proposed legislation, regulation, or policy that is currently being implemented.