Banking windfall is ‘fishy’ business

FEDERAL Labor has called for an inquiry into potential leaks of the banking royal commission report, insisting something “fishy” occurred ahead of its public release.

Labor’s financial services spokeswoman Clare O’neil has written to the head of the Department of Prime Minister and Cabinet asking for all steps to be taken to ensure the report was not leaked.

Hundreds of millions of dollars were plunged into bank shares at 11am on Monday before the report was released, delivering profits of about $22 million, the Opposition’s finance spokesman Jim Chalmers says.

“Something fishy has gone on here, and the Australian people need answers,” he told the ABC yesterday.

Parliament returns next week but the Government has not listed one of its pre-election priorities for reform arising from the banking royal commission on the Senate program.

On Monday, Treasurer Josh Frydenberg said he wanted Parliament to quickly pass amendments to a Bill that would extend civil penalties to superannuation trustees – which Labor supports.

But the Bill nominated by the Government for amendment is not listed for debate for the three days of Senate sittings next week. The omission comes as Reserve Bank Governor Philip Lowe says the Government is right to be cautious about the commission’s recommendation to make Australians pay for mortgage brokers upfront.

Commissioner Kenneth Hayne said making customers pay brokers, rather than the banks giving them commissions, would reduce conflicts of interest about who mortgage brokers really work for.

But Dr Lowe says the complicated issue needs more work.

SOMETHING FISHY HAS GONE ON HERE, AND THE AUSTRALIAN PEOPLE NEED ANSWERS JIM CHALMERS

He agreed in principle with banning trailing commissions and moving to upfront payments, but said there were competition issues to work through before going the full way. The Coalition Government has stopped short of promising to make customers pay mortgage brokers upfront, in part because of fears the banks will take all the business.

Labor wants Parliament to sit for an extra two weeks in March to ensure financial laws can be fixed as soon as possible, but Prime Minister Scott Morrison says there is no need.

“We’re acting on all 76 recommendations, and we’re going to do it carefully,” he said.