Royal Commission into Misconduct in Banking, Superannuation and Financial Services Industry Report

mubd1234 on 05/02/2019 - 11:45
Last edited 05/02/2019 - 13:35 by 2 other users

An enthralling 1000-page read! Perfect for those nights where you just can't get to sleep.

A maximum of 5 copies can be ordered per party.

Mod: As per description above, this was originally posted as a deal/joke post. Moved to forums so discussion on this subject can continue.

PDF Copy available via this link

Key Points

The final report recommends financial watchdogs consider criminal charges against unnamed organisations linked to the "fees for no service" scandal.
ASIC will become the primary conduct regulator overseeing superannuation.
The Government has now agreed to create a national farm-debt-mediation scheme that would assist borrowers to address financial difficulties that have caused loans to become distressed.
The Government will establish a so-called compensation scheme of last resort to allow consumers and small businesses, who have been failed by financial firms, to have their cases heard.
Some of the mortgage-broking industry's worst fears are contained in the final report, with the commission recommending the industry move from a commission-based to fee-based model.
Buying a Car: The final report recommends moving to a deferred sales model, meaning customers could think about whether they actually need the extra insurance.

See ABC article for more information

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Comments

- - - - HighAndDry on 11/02/2019 - 19:09
        
        @RecklessMonkeys: To answer your question first:
        
        How many economic crises is it going to take before you acknowledge that regulation has a role to play in 'free' markets?
        
        None. Regulation always has a part to play even in free markets, because no economy or market actually approaches a truly "free" market. There will always be barriers to competition, monopolistic pressures, and other factors.
        
        But to continue the discussion:
        
        Give me an ethical or moral argument that rent-seeking should be limited and that individuals should not be allowed to contract freely, (I'm going to ignore the reference to banks' tentacles - you've merely replaced one emotive term with another);
        
        You made a reference to high house prices - if your concern is not with affordability, then why is high house prices even an issue? As to "loose credit", that is nothing other than banks being willing to lend to individuals - but noone is being forced to borrow money so I still see no reason why this is the fault of the banks more than it is the fault of individual borrowers (maybe we should regulate, with penalties, people borrowing more than they can repay?)
        
        That hasn't happened in Australia yet, so all indications seem to be that Australia's banking and property markets are fairly well regulated - this is especially so since we escaped basically unharmed (compared to other countries) from the GFC.
        
        RecklessMonkeys on 11/02/2019 - 20:12
        
        @HighAndDry: I take it that you are, in fact, bored and laissez-faire.
        
        Anyway, many of your premises seem to be wrong.
        
        Don't conflate rent-seeking with regular business operations. Its corruption.
        
        High prices are indicative of a bubble and subsequent instability. Banks ARE responsible for the loans that they create. They are the risk experts, not some bloke who rocks in off the street.
        
        A Christmas Turkey may not have had its head chopped off, but that does not mean it won't happen. In any case, it sounds like one of the big four almost did fall over in 2008.
        
        “Australia's banking and property markets are fairly well regulated” LOL – Hello? Royal Commission?
        
        We are now just as vulnerable as those nations who did not escape relatively unharmed in the GFC.
        Note that we allocated $20 Billion to bail out RMBS (ie banks), interest rates are too low (penalising savers) and deposit insurance (just in case) is provided by taxpayers.
        
        So, no, it was actually a disaster, and just because we didn't totally implode then doesn't make it less of one.
        
        HighAndDry on 11/02/2019 - 20:25
        
        @RecklessMonkeys:
        
        Again, you seem to prefer to use labels than actually substantively discuss issues. Why is this behaviour, which you term 'rent-seeking' and 'corruption', bad?
        
        High prices are high prices. High prices not correlated with demand and supply or underlying value can indicate a bubble, but you haven't made that argument or said anything in support of it.
        
        The Royal Commission made barely any recommendations that would significantly change the regulatory landscape. Plus - I prefer to look at facts rather than words, and the facts are that Australia's economy has been one of the most stable and successful ones in the world for the past decade if not longer.
        
        So, no, it was actually a disaster, and just because we didn't totally implode then doesn't make it less of one.
        
        Of course the GFC was a disaster. But it hit the rest of the world far worse than it did Australia. Everything is relative, especially in economics which is as artificially a human concept as you can get. And Australia made it through the GFC swimmingly, notwithstanding your (again) baseless speculation as to the future. The actual numbers say Australia's economy is one of the best in the world. What do you have on your side of the argument?
        
        RecklessMonkeys on 11/02/2019 - 21:03
        
        @HighAndDry:
        
        If you don't think corruption is bad, then I can't help you.
        
        Yes, they are. They indicate an imbalance of supply and demand. The supply here is that of credit, which you seem to have already conceded.
        
        The RC wants the law applied. The regulators have a done sh!t job for whatever reason. Community expectations have not yet been met. And whether they are remains to be seen.
        
        Put aside relativism for a moment. We did not 'swim' through, although I concede it gives many people that impression. It is going to be all the more shocking if property does crash and a large institution fails. We kicked that can down the road – both regulatory and financially.
        
        But if you want a relative comparison, you need only compare our levels of domestic debt to those of the US, Ireland etc to see there could be a problem. I refer you to countless other financial crises if you want evidence that it could happen… or would have us all be Christmas Turkeys personified?
        
        What has me stumped is your willingness to give banks a free pass. I'd guess you'd jump on the idea of a welfare state, but there is no greater recipient of welfare than banks who socialise losses.
        
        HighAndDry on 11/02/2019 - 21:07
        
        @RecklessMonkeys:
        
        You're still just using labels. You haven't supported, in any way shape or form, why any of this was corruption.
        
        Imbalance….? Do you know how demand and supply work? Plus - the banks don't actually control the supply of credit, that is ultimately set by the RBA through its monetary policey.
        
        Still vague platitudes.
        
        Australia's economy is one of the world's best. Economic performance can't be an objective measure, because no one's economy works (at all) independently. But neither is this my personal subjective opinion so I don't really care about your personal opinion on the issue either. According to OECD's biannual report of Nov 2018:
        
        Australia's economic growth is tipped to remain "robust" and ahead of most advanced economies through to the end of next year,
        
        That we're outperforming even other advanced economies means that whatever the faults or issues our banking industry has (which underpins any economy), it is working well. If you want to dispute this, you'll need to provide actual facts, not suppositions.
        
        In any case, I think I've gotten an answer to the question I originally raised. Thanks for the discussion though.
        
        RecklessMonkeys on 11/02/2019 - 21:55
        
        -1
        
        @HighAndDry: In fact, it's you re-labelling and ignoring what I've said. I don't have the time or inclination to spell out every assertion. Look it up. Challenge your own bias.
        1. You asked for "an ethical or moral argument that rent-seeking should be limited" . Give me a break
        2. Yes. Do you? Furthermore, it's a fractional reserve system. The banks do heavily influence money supply. Look it up.
        The RBA may set interest rates, but they are forced to drop them to avert a crash. Rates are historically very low (how's that for fact) Why are you not concerned? The next step could be QE (another bailout)
        3. I repeat : The RC wants the law applied. The regulators slapped banks over the wrist. Look it up.
        
        It is a pretty basic logical fallacy to assert that what has been, will always be. Look that up too.
        
        Give me one example where an official body has predicted a recession, let alone a full on crash.
        They tend to be upbeat for fear of damaging confidence, and preempting economic decline.
        
        The list making has been fun, but thank you also.
        
        HighAndDry on 11/02/2019 - 23:07
        
        @RecklessMonkeys:
        
        You asked for "an ethical or moral argument that rent-seeking should be limited" . Give me a break
        
        Is it really too much to ask that your support your opinions?
LookAtMeow on 08/02/2019 - 16:43

+2

Hahaha, Rothfield Print & Image Management should sponsor OzBargain to say thank you for all the business we've given them!

To whom it may concern,

You have recently submitted an order for a hard copy of the final report of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.

Due to the high volume of orders received, there will be delays in postage of hard copies. The next print run is due to be completed by the end of February.

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- petry on 10/02/2019 - 11:33
  
  whats needed is a royal commission into privacy in Australia and the sharing of our information with foreign governments in real time.
  
  In the last year there is an ever increasing number of people being seized/ arrested in airports, passing through them and soon after arrival.
  
  These include an increasing number of Australians, including refugees granted Australian rights.
  Its become difficult to accept that these are anything to do with chance - citizens movement information is being shared in real time through surveillance by a number of governments including our own.
  
  I reckon that fact alone merits a Royal commission. Making token gestures after passing information about our citizens to foreign governments without it ever being publicly disclosed is something that only a fascist state would engage in. Collateral damage it could be argued, flaws in automated security monitoring systems does not excuse subjecting our citizens to torture and imprisonment abroad. 5 eyes is real, and is now operating here excessively without due public scrutiny.

Royal Commission into Misconduct in Banking, Superannuation and Financial Services Industry Report

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