Banking royal commission: Labor reveals tough new bank measures if it wins federal election

Treasurer Josh Frydenberg has dismissed a Labor plan to grill bank chiefs twice a year on their progress implementing royal commission findings as the ‘latest attempt to appear tough’.

Treasurer Josh Frydenberg has dismissed a Labor plan to grill bank chiefs twice a year on their progress implementing royal commission findings as the ‘latest attempt to appear tough’.

Mr Frydenberg said the Opposition was “simply playing catch up” with another “thought bubble” today given bank bosses already faced public hearings in Parliament, with the next hearings scheduled for next month.

Labor announced the measure today, along with a policy to force Australia’s big four banks, the corporate and banking watchdogs and the peak lobby group for banks to develop an implementation plan for the royal commission recommendations by August 1 this year.

Major companies, industry bodies, APRA and ASIC would also be required to publicly report to a Royal Commission Implementation Taskforce about their progress implementing recommendations twice a year.

“We already have systems in place for the banks to come and explain their case to the parliament,” Mr Frydenberg said.

Mr Shorten said banks wouldn’t be let off the hook. Picture: Kym Smith

“And after two weeks we are still waiting for Labor’s comprehensive response to the royal commission.”

He added that the Australian Securities and Investments Commission already regularly reported to Parliament and noted the government planned to strengthen AFCA’s public reporting as part of its response to the royal commission findings.

Labor announced the plan today after yesterday unveiling private members bills to tackle royal commission recommendations including funeral insurance “rip offs”, dodgy car loans and poor insurance claims handling.

“The Royal Commission can’t be left to gather dust on a bookshelf,” Opposition leader Bill Shorten said.

“Labor fought for this banking royal commission and we will continue the fight to make sure consumers are protected and the banks aren’t let off the hook.”

Bank chiefs will be forced to face a grilling in parliament every six months on how they’re implementing royal commission recommendations if Labor wins the election. Picture: AAP

“The big banks will have to front up and tell Australians exactly how they are changing their culture to meet the Banking Royal Commission recommendations, with a Shorten Labor Government putting in place strict new reporting requirements to ensure banking execs aren’t let off the hook.

“Forcing the banks to front up and report their progress as they implement the Royal Commission’s (recommendations) will be a key part of ensuring there is permanent change in the financial services industry.”

Mr Shorten also said banks will now be “named and shamed” when the Australian Financial Complaints Authority makes findings against them in a case.

Treasurer Josh Frydenberg said the government needed to carefully consider all of the banking royal commission’s recommendations. Picture: AAP/Mick Tsikas

Treasurer Josh Frydenberg slammed Labor’s call yesterday to add extra sitting days to deal with “a mere 6 per cent” of the Hayne recommendations, saying the government needed time to carefully consider all 76 recommendations, 40 of which would require legislation.

“As the Leader of the Opposition knows, there’s consultation papers, there’s drafting instructions, there is a draft of the exposure draft of the legislation — and then that needs to be introduced,” Mr Frydenberg said during Question Time.

“And none other than the Law Council of Australia said, ‘We must take the time to get this right.”

Prime Minister Scott Morrison said it looked like Labor “spent 15 minutes” on legislation the party unveiled yesterday to deal with funeral insurance “rip offs”, dodgy car loans and poor insurance claim handling.

“It’s a very serious issue and it requires a very serious response,” Mr Morrison said.

Originally published as Banking royal commission: Labor reveals tough new bank measures if it wins federal election