Devil’s in the detail for banks as deadline hits
THE head of the royal commission into financial misconduct has turned a blowtorch on the finance companies for dragging their feet in preparing “dirty laundry” lists.
Kenneth Hayne QC, who is leading the commission, said major companies in the sector have declared they will be unable to meet a deadline he has laid down.
He asked a suite of companies to hand over information, including details of misconduct over the past five years, by 4pm today.
All four big lenders – the Commonwealth Bank, Westpac, ANZ and National Australia Bank – were asked to provide information, Business Daily believes.
Speaking at the commission’s first public hearing yesterday in Melbourne, Mr Hayne said he had initially written to major financial companies in December.
They were asked to provide information, including examples of misconduct or situations where conduct had fallen short of community expectations over the past 10 years.
The companies had until January 29 to provide their responses. Mr Hayne said yesterday that he was not satisfied with the amount of detail some of the institutions provided.
On February 2, he wrote to some of the “large respondents” requesting more information – this time covering just the past five years – and gave 4pm today as the deadline.
“Some, but not all, of those respondents – none of them a small entity – have said that they cannot comply with the request ... within the time fixed,” he said.
“It has been said that the deadline cannot be met because of the amount of material that has to be reviewed and then assembled.”
This was “itself a matter to which further attention may have to be given”.
ANZ has not asked for an extension and Westpac is expecting to provide information by the deadline, Business Daily believes.
The CBA is believed to have asked for an extension of up to a day as it sorts through information it may include in its submission, which may be up to 75 pages.
Mr Hayne initially asked for reports of no more than 50 pages.
In a statement, the CBA said it welcomed the opening statements made at the hearing yesterday.
“( We) are working positively and constructively to meet its requests for information,” CBA said. “This is part of our responsibility and stated intention to be open, transparent and cooperative with the commission.”
NAB’s chief legal and commercial counsel, Sharon Cook, said the lender was committed to fully co- operating.
“We are doing everything possible including devoting substantial resources to meet the time frames of the commission’s requests for information and questions,” Ms Cook said.
Formally called the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, the probe will run throughout the year.
Rowena Orr QC, the senior counsel assisting, said consumers had made more than 385 submissions and the number was increasing each week.
Almost half related to the banking industry, she said. The superannuation sector was the focus of the next biggest proportion, at 18 per cent.
Queensland accounts for the biggest number of responses so far, at 110, followed by Victoria, with 106, and New South Wales at 95.
People from South Australia and Tasmania have made the least submissions, at 17 and fewer than 10 respectively.
The royal commission was announced by the Federal Government last November after a series of scandals engulfed the banks and other financial services companies. An interim report is due to be handed to the Government by September 30, with a final report due next February 1.