ZCZC
BCN-07
AUSTRALIA-ECONOMY-BANKING
Australia opens national inquiry into finance sector
SYDNEY, Feb 12, 2018 (BSS/AFP) – Australia opened a long-awaited inquiry
into its massively-profitable finance industry Monday after a string of
scandals rocked confidence in the sector.
The country’s “big four” banks — among the developed world’s wealthiest –
– have been under increasing scrutiny in recent years amid allegations of
dodgy financial and life insurance advice, and mortgage fraud.
There have also been claims of anti-money laundering laws being breached
and benchmark interest rates rigged.
Prime Minister Malcolm Turnbull had long resisted Labor opposition calls
for a royal commission into misconduct, claiming it would be a waste of
money, but mounting political pressure forced his hand.
With uncertainty over the issue hurting offshore investor confidence, he
announced the inquiry late last year to probe “the nation’s banks, big and
small, wealth managers, superannuation providers, insurance companies”.
Australian Bankers’ Association head Anna Bligh said the hearings may be
uncomfortable.
“It’s important that it (the inquiry) gets to the matters that have
disturbed the public,” she told ABC radio.
“I do expect this will be painful for banks and their staff.”
The Royal Commission into Misconduct in the Banking, Superannuation and
Financial Services Industry has the power to summon witnesses and take
evidence.
While it can authorise police to apply for search warrants and witnesses
who fail to appear may be arrested, it is not able to order compensation to
those affected by any wrongdoings.
It can, however, make recommendations for the government to consider, such
as changing regulations governing the sector.
Commissioner Kenneth Hayne, a former High Court judge, has 12 months to
conduct his investigation and lodge a report with Canberra.
BSS/AFP/HR/0940