Key initiatives introduced at banks include customer advocacy programmes, whistleblower protection policies and conduct background checks to stamp out staff with poor behaviour records.
Australian banks take on average over 4 years to identify misconduct, over 4 months to report it, over 7 months post-investigation to compensate customers.
Draft law provides ASIC with wider range of tools to enforce better protections for client money held for OTC derivatives.
Wealth manager AMP covered up for years a policy of charging customers fees for advice they never received; sought to influence “independent” review into the practice to protect executives.
APRA may have delayed planned reforms to the Economic and Financial Statistics reported by banks, but banks can’t afford to be complacent, says Douglas Cheung, examining how banks should best prepare for the reforms.
Australia’s Financial Stability Review says risks easing, financial system resilient; but dangers remain on household debt, weak risk control and poor culture at banks.
The ACCC will examine a potential oligopolistic structure in Australia’s banking sector and review competitive practices that have allegedly led to higher barriers to entry for newcomers.
CBA and ANZ to pay $69mn and $36.4mn compensation, respectively, for failing to provide documentation of annual customer reviews.
Licensees may not use OTC derivative client money for own obligations, working capital; new reporting requirements to increase transparency on client money use.
APRA review of executive remuneration frameworks at twelve financial institutions found remuneration structures do not encourage behaviour focused on risk management or long-term financial soundness.