The Australian Banking Royal Commission’s interim report focused on a range of negative issues which seemingly stemmed from the vertical integration models within the banking and financial services sector. It is likely that this will result in the unwinding of vertically integrated financial services groups leading to an entirely different landscape of Australian financial service providers from an ownership and commercial perspective. Numerous wrongdoings have been aired in the Commission which will result in material enforcement actions by ASIC (for which funding has already been provided).
A presentation on The Australian Banking Royal Commission and its likely fall out was delivered to the Australian Corporate Counsel Association by Baker McKenzie’s head of financial services in Australia, Bill Fuggle along with partner Antony Rumboll, special counsel Alan Darwin, senior associate Sibel Kaan and Shemira Jeevaratnam.
The presentation explored the considerations of ASIC and the Federal government moving forward in relation to charging fees, the products and services provided to retail clients, the drivers of behavior of various levels of employees within the sector and methods to moderate or remove negative behavior.
Please reach out to our Team if you would like to discuss the likely changes to occur in the regulatory environment as a result of the Commission’s findings, for example aggressive regulatory enforcement and further legislative and regulatory reform.