In a non-too subtle attempt to get on the front foot before being flayed by the Financial Services Royal Commission next month, APRA has published an information paper outlining how banks will be expected to meet their obligations under the new Banking Executive Accountability Regime (BEAR).
[Note An edited version of this article, by Pat McConnell and Benjamin Koh, appeared in Australian Banking and Finance on 22nd October 2018. Many thanks to editor Elizabeth Fry.]
Continue reading “The APRA Teddy Bear growls”
The Royal Commission (RC) into Misconduct in the financial industry in Australia, is doing an invaluable service to the Australian public by stripping away the facade that the largest financial institutions in Australia were operating honestly and that they were being well-policed by world-class regulators.
However, in making recommendations to change the Australian financial regulatory system, the Royal Commission must endeavour to fight the next war, not the last one.
Continue reading “Is the Royal Commission solving yesterday’s problems?”
It’s like a Monty Python sketch – “This parrot is NOT dead – see, it’s still paying life insurance! Why would it do that if it was deceased? Who would be silly enough to sell a dead parrot life insurance?”
Justice Hayne, Commissioner of the Royal Commission (RC) into Misconduct in the Financial Industry in Australia, asked a similar question and in the commission’s Interim Report provides some to the point answers:
- greed – “the pursuit of short-term profit at the expense of basic standards of honesty”; and
- because they could – “when misconduct was revealed, it either went unpunished or the consequences did not meet the seriousness of what had been done”.
Continue reading “Royal Commissioner – the Australian regulatory system is broken!”