Australian consumers expected to get fairer deals from banks after royal commission report

Every Australian can expect fairer and simpler deals from financial services providers following the release of the royal commission’s report.

Experts say Australians should get better deals on their money under a fairer and simpler system to be detailed tomorrow in the final report of the financial services royal commission.

Described by consumer advocates as a “once in a generation opportunity” there’s hope customers will begin to see serious change when dealing with financial services providers.

Commissioner Kenneth Hayne has spent the past year unveiling the horrors of the nation’s rogue operators, including charging dead people, fees for no service, misleading customers and lying to regulators.

Barefoot Investor Scott Pape said he hoped the report would finally deliver hardworking and innocent Australians — many of whom have been dudded by their financial services providers — better and fairer deals.

“Hopefully what it will mean is every person — because it affects every person in the country — will see what is wrong,” he said.

“Hopefully it delivers us benefits on how we can have our own needs serviced first.”

Pape said he was optimistic “every working Australian could be delivered meaningful change.”

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Commissioner Kenneth Hayne’s final report into the financial services industry is set to dramatically shake up the sector.

Commissioner Hayne is widely viewed as having brought a fresh pair of eyes to the issues, given previous inquiries were run by former bankers including David Murray.
Pape said the Hayne probe was the first into the finance industry “by someone out of the … tent.”

The report will be made public at 4pm tomorrow.

Financial Counselling of Australia’s executive director Fiona Guthrie said she expected it would help to deliver a fairer financial system.

“Financial services is complex enough and I hope it will be made simpler and easier,” she said.

“I was shocked with the deep and systematic problems in the industry and that some institutions misled the regulator.”

AMP CEO Craig Meller who has quit. Picture: Hollie Adams/The Australian

Ms Guthrie said banks, super funds and financial advisers needed to be more transparent when dealing with customers and “help put them in a better position not a worse position.”

Consumer Action Law Centre chief executive Gerard Brody said the public could “expect the financial services industry to be reset in their favour.”

“We will see some changes including improved lending standards, hopefully the removal of loopholes and exemption in the laws that benefit some of the providers,” he said.

“We’ve all heard about the ills of commission-based selling and it was shown clearly sales targets and commissions turned these institutions into sales machines, not service organisation.”

Catherine Brenner, who resigned from AMP. Picture: Britta Campion

Mr Brody said he also anticipated improved systems for redress for customers.

“We know banks have started looking at their remediation programs where they have done something wrong,” he said.

“I expect we will hopefully will get to more transparency and accountability around that to keep the banks accountable so they do compensate customers where they have done things wrong.”

He said this could include when institutions had given loans irresponsibly, charged fees for no service or sold insurance to people who didn’t need it.

@sophieelsworth

WHAT’S HAPPENED TO THE BIG FINANCIAL BOSSES

AMP

CEO Craig Meller (QUIT)

CHAIR Catherine Brenner (RESIGNED)

Chief legal officer Brian Salter (SACKED)

Brian Salter, former head at AMP. Picture: Hollie Adams/The Australian

Advice executive Jack Regan (RETIRED EARLY)

The wealth manager was revealed to have charged customers fees for financial advice that was never delivered and then lied about it to regulators

Jack Regan; Head of Advice at AMP retired. Picture: James Croucher

CBA

CEO Ian Narev (RETIRED EARLY)

Australia’s biggest bank admitted charging dead clients for advice. More than 50,000 breaches of money-laundering laws triggered the early retirement Mr Narev — and helped to prompt the royal commission

Ian Narev, former Commonwealth Bank of Australia CEO. Picture: James Croucher

FREEDOM INSURANCE

CEO Keith Cohen (SACKED)

CFO Jenny Andrews (QUIT)

Halved staff numbers amid a restructure that included a halt to aggressive sales techniques that attracted corporate regulator ASIC’s ire and a public shaming at the royal commission. Shares down 97 per cent since royal commission announced

Former Managing Director of IOOF Holdings Christopher Kelaher. Picture: AAP

IOOF

MD Christopher Kelaher (STEPPED ASIDE)

Chair George Venardos (STEPPED ASIDE)

The pair are fighting financial regulator APRA’s attempt to have them disqualified for failing to act in the best interests of the wealth manager’s superannuation members

George Venardos also stepped aside. Picture: supplied

NAB

Consumer chief Andrew Hagger (QUIT)

This big-four bank was caught in the fees-for-no-service scandal. Hagger, who once had hopes of becoming CEO, was mauled at the royal commission for “a disrespect for the role of the regulator and a disregard for the gravity of the events in question”.

Former National Australia Bank Chief Customer Officer Andrew Hagger. Picture: AAP

Originally published as Australian consumers expected to get fairer deals from banks after royal commission report