What arguments the Government use to reject the call

Assignment Help Case Study

Reference no: EM132311245

Case Study -

Background: In December 2017, after years of opposition, dismissal and resistance by the Federal Coalition Government and the financial sector, a Royal Commission into Misconduct in the Banking, Superannuation and financial Services Industry was finally appointed under Comm Kenneth Hayes. The Commission examined the behaviour of the big banks (ANZ, NAB, CBA and Westpac) as well as a range of other organisations involved in the sector (AMP and OOOF being two). The Commission spent a significant proportion of the year hearing testimony from a range of witnesses, including those from the financial sector (the banks and financial providers), business lobby groups (Australian Bankers Association), consumer and support organisations, law enforcement agencies (ASIC and APRA) affected consumers. The media reported some extraordinary admissions and findings. In the end, however, many commentators expressed disappointment with the final report of the Commission, seeing it as "damp squib". The stockmarket also apparently perceived the report as weak compared to what was anticipated with the effect being the bank stocks rebounded in price and demand for the trading days after the release date of the report.

The major findings of the Commission were as follows - some have already been promised:

That ASIC and APRA consider criminal charges against organisations linked to the "fees for no service" practice (but no organisations were named).
That ASIC oversee the superannuation sector.
That APRA and ASIC be empowered to impose civil penalties for breach of superannuation regulation (along with other modifications).
That a national farm debt mediation scheme be established.
That a last resort compensation scheme for consumers and Small Business be established.
That APRA and ASIC enforce via penalty regimes and legal action rather than issue of infringement notices.
That ASIC and APRA be scrutinised by a regulator-oversight body.
That Mortgage brokers be paid a fee/levy by customer, not financiers.
That car dealers be limited in "add-on: financial packages they could sell.

Questions:

1. Why was there pressure exerted on the Federal Government to have a Royal Commission?

2. What arguments did the Government and Financial Services Sector use to reject the call for a Royal Commission?

3. Using one bank or other provider as an example (so you can use either IOOF, NAB or any other provider testifying before the Commission), what governance issues did the commission investigations and hearings identify for that provider?

4. From a governance perspective, how has that provider responded to the Commission findings?

5. What (if any) implications do those specific findings have for corporate governance in Australia? (when answering this question, consider the PCG on the ASX website).

Attachment:- Assignment File - Case Study.rar

Reference no: EM132311245

Questions Cloud

Who was affected by the scandal and the final outcome : Case Study - Australian Wheat Board. Who was affected by the scandal and the final outcome? Why do you think AWB was able to pursue the behaviour

loT Revenue Model challenges : Submit a research project - loT devices and Next Generation Manufacturing - loT for Independent Living of the Older Generation

Examine physical servers in the networking lab : ICTNWK504 Design and Implement an Integrated Server Solution-Victoria University Australia-Examine physical servers in the networking lab.

What does the VW story suggest in terms of risk management : Managing the Legal Environment - Case Study - VW Emissions Scandal. What does the VW story suggest in terms of risk management

What arguments the Government use to reject the call : What arguments did the Government and Financial Services Sector use to reject the call for a Royal Commission

Explain the scope of the project : Human factor issues, using logic to explain the rational that you feel were significant elements in the error chain leading to the terminal event

What risk management issues should an employer consider : BULAW5911 Managing The Legal Environment Assignment, Federation University, Australia. What risk management issues should an employer consider

What was it about the second example : Provide an example of a situation where an attempted motivational tool did not work. What was it about the second example that did not work? Explain

Logical treatment to use : If a risk is classified as occurring frequently and having a high severity which of the following would be the most logical treatment to use?

User Account

All Pages