Banking Royal Commission and what it means to you
What’s behind the shocking revelations coming out of this inquiry?
What is it: The Banking Royal Commission was called at the end of 2017 to investigate any misconduct into the banking, superannuation and financial services industry, with the final report to be completed by 1st February 2019. After initial protestations by the Prime Minister, the Commission was set up after pressure from whistleblowers, some Parliamentarians and the public.
Findings so far: There have been a number of major cases of misconduct, with CBA admitting some of their financial planners charging fees to deceased clients, NAB knowing about staff members falsifying customer signatures, AMP admitting to lying to the regulator which forced the Chief Executive and Chairman to step down, and even ASIC the regulator confirming not all complaints of financiers are being investigated.
What does it mean for you?: In the long term, hopefully a more robust and transparent banking industry. In the short term however, there may be added scrutiny on obtaining finance as the banks seem to already take a more cautious approach.
Moving forward: With all the bad news coming out of the Commission, naturally it will be hard to trust professionals within the industry. However like all industries, there are good and bad apples. I am confident that good stories outweigh all the examples of bad practice coming out.
The Commission wasn’t called to reduce confidence in honest and knowledgeable industry professionals, but more to identify weaknesses in the industry. The Australian banking industry is still one of the strongest on the globe with most industry professionals very competent in working in the best interests of its customers.
Raj Ladher from Tomorrow Finance is a mortgage expert with over 11 years' experience both in the UK and Australian mortgage markets. Accredited with the Mortgage and Finance Association of Australia (MFAA) and access to numerous lenders, Raj specialises in all types of mortgages, from first homeowners to investors increasing their portfolio. For more, email email@example.com. au