HomeMedia & ResourcesMedia ReleasesCOBA responds to the Final Report of the Financial Services Royal Commission

COBA responds to the Final Report of the Financial Services Royal Commission

Print

 The Final Report of the Financial Services Royal Commission provides a road-map to ensure that customers’ interests are brought to the fore, and that community standards and expectations are met.

Recommendations to strengthen the accountability and effectiveness of regulators are particularly welcome, including:

  • a new, independent oversight authority for the Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC), and
  • regular capability reviews of APRA and ASIC.

COBA also supports the principles outlined by the Commissioner such as simplification of the law, and greater connection between the law that is being made and the fundamental norms of behaviour that is being pursued.

“Regulation is not just about new laws, it is also about the decisions and behaviour of regulators, so it is pleasing that the Royal Commission has recommended measures to strengthen the accountability of regulators,” said COBA CEO Michael Lawrence.

“There have been many examples of regulatory over-reach that disproportionately impact smaller players, such as APRA’s investor lending caps, and these can ultimately act against consumers’ interests.

However, Mr Lawrence urges policy makers to ensure that the focus on competition is not lost, particularly in relation to the recommendation that borrowers, not lenders, should pay broker commissions.

“The broking channel is an important one for many smaller lenders. We are keen to proceed with caution to ensure that there is no adverse impact on consumers’ access to lenders and that competition in the home lending market isn’t eroded.

“It is critically important that the focus on competition is not lost. We have a banking market that is dominated by four major players, who throughout the Royal Commission have proved that their focus is not always in the customers’ best interest.

“The enduring solution to issues of conduct is more competition. A stronger and more competitive customer owned banking sector will make the major banks think twice about how aggressively they put shareholders ahead of customers.”

For more information please contact:

Mick Gibb

Corporate Affairs Manager

0423 149 494

This e-mail address is being protected from spambots. You need JavaScript enabled to view it

284x148_man.jpg

Media Contacts

Mick Gibb
Corporate Affairs Manager
P: +61 2 8035 8444
M: +61 423 149 494
Email Mickcontact-arrow

COBA Alerts

To receive notifications about our latest Media Releases, Submissions and other news sent straight to your inbox, subscribe to COBA Alerts.