Question

The purpose of the Royal Commission into misconduct in banking, superannuation, and other financial services industry. Requirement: 1. use the royal commision website to determine. 2. 400 words

Answer 1

The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, also known as the Banking Royal Commission and the Hayne Royal Commission, is a royal commission established in 2017 by the Australian government pursuant to the Royal Commissions Act 1902 to inquire into and report on misconduct in the banking, superannuation and financial services industry.

The purpose of the Royal Commission is as follows-

The Commission must inquire into the following matters;

a) the nature, extent and effect of misconduct by a financial services entity (including by its directors, officers or employees, or by anyone acting on its behalf);

b) any conduct, practices, behaviour or business activity by a financial services entity that falls below community standards and expectations;

c) the use by a financial services entity of superannuation members’ retirement savings for any purpose that does not meet community standards and expectations or is otherwise not in the best interest of members;

d) whether any findings in respect of paragraphs 1(a), (b) and (c): i. are attributable to the particular culture and governance practices of a financial services entity or broader cultural or governance practices in the industry or relevant subsector; andii. result from other practices, including risk management, recruitment and remuneration practices;

e) the effectiveness of mechanisms for redress for consumers of financial services who suffer detriment as a result of misconduct by a financial service entity;

f) the adequacy of: i. existing laws and policies of the Commonwealth (taking into account law reforms announced by the Government) relating to the provision of financial services; ii. the internal systems of financial services entities; and iii. forms of industry self-regulation, including industry codes of conduct; to identify, regulate and address misconduct in the industry, to meet community standards and expectations and to provide appropriate redress to consumers and businesses;

g) the effectiveness and ability of regulators of a financial services entity to identify and address misconduct by those entities;

h) whether any further changes to: i. the legal framework; ii. practices within financial services entities; and ii. the financial regulators, are necessary to minimise the likelihood of misconduct by financial services entities in future (taking into account any law reforms announced by the Government); and i. any matter reasonably incidental to a matter mentioned in the above paragraphs, 1(a) – 1(h).