The Bull

Tuesday 11

December, 2018 8:11 PM



Top issues raised in banking RC report

Top issues raised in banking RC report

The interim report of the banking royal commission has raised a number of areas that need further work to better protect consumers.

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By AAP 28.09.2018 03:22 PM

ISSUES FROM THE BANKING ROYAL COMMISSION:

* CONSUMER LENDING

There is "confusion" around intermediaries' (mortgage brokers, mortgage aggregators etc) obligations towards customers and customer expectations of them. Key issue is properly verifying customers' existing financial situations before products are sold to them.

* FINANCIAL ADVICE

Key issues are conflicts of interest, confusion of roles, bonuses and other incentives and regulator ineffectiveness.

* SMALL AND MEDIUM-SIZED BUSINESSES

Should there be new laws around lending to small business, changes to rules regarding third-party guarantors and better ways of dispute resolution?

* AGRICULTURAL LENDING

Solutions are needed to problems with access to experienced bankers with knowledge of the sector, changes to lending conditions, and the appointment of external administrators.

* REMOTE COMMUNITIES

A better approach is needed in dealing with indigenous communities, which have faced "predatory behaviour", particularly in regard to funeral insurance.

* REGULATION AND THE REGULATORS

May need to simplify the laws governing financial services entities and improve the operations of the regulators and their enforcement and regulatory practices.

* ADDRESSING CAUSES OF MISCONDUCT

Better culture within the banks, changes to remuneration practices, greater accountability of banking executives and intermediaries to act in the best interests of customers.

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