Shares up and fees down
INVESTORS have been winners from the royal commission’s final report in more ways than one.
A strong performance by the big four banks’ shares last week has pumped up portfolios, while many investors who use financial advisers will pay fewer fees under the report’s recommendations.
Motley Fool chief investment officer Scott Phillips said the bank share price surge of between 3.9 per cent and 7.6 per cent on Tuesday alone showed that investors had expected the royal commission to make recommendations that would have “materially impacted bank profitability”.
“In the event, either investors were too pessimistic in the past, or Commissioner Kenneth Hayne was too gentle – put me down for the latter,” he said.
Australian Shareholders’ Association chair Diana D’Ambra said the report would lead to “better protections for consumers and stronger enforcement of existing regulation”.
“We especially support the reaffirmation that new laws aren’t required, but current laws need to be enforced,” she said.