Day 337: ' A few brief snapshots'
An introductory weekday newsletter from Schwartz Media. Counting the days since the banking royal commission was established.
Good afternoon and welcome to day 337.
Today in summary: the Senate Economics Reference Committee calls for an extension to the Hayne royal commission; APRA says it’s going back over cases of potential misconduct by banks in the light of new royal commission evidence; and Independent Senator Fraser Anning wants a Senate committee to delve into misconduct by bank agents and associates, an area he argues the royal commission has overlooked.
-- Charis
Current banker panic level: 😨😨😨
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The Senate Economics References Committee has tabled its long-overdue report on consumer protection in the banking, insurance and financial sector. The inquiry, referred almost two years ago, has largely been superseded by the Hayne royal commission. The Committee used the opportunity to call for an extension to the royal commission’s deadline, arguing
“It seems unlikely, given the extent of misconduct and behaviour below community standards that has been indicated in public evidence so far, that the Royal Commission will be able to adequately cover issues in the financial sector beyond more than a few brief snapshots in the time that it has been allocated and the small number of witnesses that it has called in public hearings.”
In dissenting comments, the Coalition Senators on the Committee said the Coalition rejected the recommendation for an extension “to the extent that it does not support the Commissioner asking for more time before more time is granted”.
The Committee is continuing to inquire into areas the royal commission has not considered, including payday lenders, ‘buy now, pay later’ providers, credit repair agencies and debt management firms. It is required to report by February 22, 2019.
Prudential regulator APRA says it’s re-examining cases of potential misconduct by regulated entities raised during the royal commission where the evidence presented was either new to APRA or contradicted what it had previously been told. APRA Deputy Chair John Lonsdale told a conference:
“That process will continue into 2019, and may well lead to formal enforcement action, should we deem it warranted.”
Controversial Senator Fraser Anning has moved a Senate motion to establish a “Select Committee on Misconduct by Bank Agents and Associates”. The Committee would inquire into and report upon the actions of lawyers, receivers, liquidators, valuers, police, real estate agents, stock squad, trustees, and anyone else involved with banks and their dealings with bank customers. At the time of writing the motion had not yet reached a vote.
Today’s burn prize: Commissioner Hayne
🔥🔥🔥
“At this stage, I’m unsure whether a witness list will be issued prior to the hearings.”
Royal commission media director Jamie Collins conveys the bad news to journalists that next week’s hearings in Sydney, featuring the regulators, bank CEOs and chairman, could be quite ‘fluid’.
The Commentariat
The Hayne royal commission hearings have enriched a vast army of lawyers and the Commissioner seems inclined to make this a permanent arrangement, writes the AFR’s Jennifer Hewett.
“Court cases are not only extremely protracted, complex and expensive, they never come with any guarantee of an eventual win.
“The government is promising more money will be available to help improve future results from litigation. (That's even though the Coalition has repeatedly failed over several years to legislate recommended reforms that would make it easier for regulators to force speedier cooperation and allow ASIC to ban dodgy products.)”
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