Banking royal commission: bank advisory body to be suspended

The government is set to suspend the operation of the Financial Sector Advisory Council while the bank inquiry is underway.

Suncorp CEO Michael Cameron chairs the advisory body. Pic: AAP

The Turnbull government is set to suspend the operation of the Financial Sector Advisory Council while the financial services royal commission is underway.

It is understood that the decision could be announced as early as today.

FSAC, which is chaired by Suncorp boss Michael Cameron and has members including Westpac chief executive Brian Hartzer, advises the government on the performance of the financial system regulators — the Australian Securities and Investments Commission, the Australian Prudential Regulation Authority and the Payments System Board of the Reserve Bank.

It also acts as an industry consultation body, advising Federal Treasurer Scott Morrison on conditions and emerging trends in the financial sector, as well as potential regulatory reforms to improve the efficiency and competitiveness of the financial sector.

​Some of the institutions represented on FSAC have featured prominently in the royal commission hearings, in particular AMP.

AMP chief executive Craig Meller resigned from FSAC last month shortly after he quit his AMP post, which, in turn, followed revelations that the company had charged customers fees without providing financial advice.

AMP also admitted to misleading ASIC in its investigation of the scandal.

Westpac was in the royal commission’s crosshairs yesterday, after disability pensioner Carolyn Flanagan lost her house to the bank after pledging it as security for her daughter’s failed franchise business.

Ms Flanagan is chronically ill and legally blind.

Suncorp, for its part, will appear before the royal commission for the first time in the current round of hearings on business lending.

The group will be examined on the topic of responsible lending to small businesses.

FSAC was reconstituted by the government in 2016 as part of its response to the financial system inquiry.

At the time, Financial Services Minister Kelly O’Dwyer said it was expected to meet three times a year.

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