Shares up and fees down

The Daily Telegraph (Sydney) - - Racing -

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.

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