A yearlong inquiry into misconduct in Australia’s financial industry uncovered a litany of scandals, including charging for services that were never provided, forging loan documents, lying to regulators and pushing customers into bad investments to meet bonus targets. The Royal Commission also described regulators as ineffective and urged them to toughen enforcement and curb the bonus culture that fueled decades of wrongdoing. It recommended the abolition of “money for nothing” commissions on loans and referred 24 cases of alleged bad behavior for possible legal action. However, it stopped short of mandating that “one-stop-shop” financial firms be broken up or that lending rules be tightened, actions that could have threatened bank profits.
Author: Peter Vercoe