Inquiry may widen

Banking royal commissioner has scope to seek extension

THE Turnbull Government would be open to extending the banking royal commission if it is requested by the man overseeing the inquiry.

The commission this week heard what senior ministers are describing as “disturbing” revelations, including that AMP had been charging clients for advice they never received and then repeatedly lied to the corporate watchdog.

“If the royal commissioner (Justice Kenneth Hayne) says to us that there is more work to be done, that he needs more time, then obviously the Government would act on that,” Finance Minister Mathias Cormann said yesterday. The final report is due by February 2019.

Treasurer Scott Morrison said penalties for behaviour such as AMP’s could include jail.

In a statement ASIC said “fees for no service” and false or misleading statements had been part of its investigation into AMP, during which it had received many thousands of documents, which resulted in 18 examinations of the company’s staff.

Former deputy prime minister Barnaby Joyce admitted he was wrong to argue against a royal commission.

“What I have heard is (sic) so far is beyond disturbing,” he tweeted. He later questioned whether banks should be broken up to avoid conflicts of interest.

“They should consider whether they should be in the financial-planning business after the evidence delivered,” he said. “It appears from evidence to be too much of a conflict of interest.”

Financial Services Minister Kelly O’Dwyer believes financial companies will have work to do to regain the public’s trust after the revelations.

“It is for them to explain how they are going to regain the trust of their customers,” Ms O’Dwyer said.

Labor has been quick to point out it had pledged in April 2016 to hold a royal commission.