APRA CBA probe insufficient says union
The Australian Prudential Regulation Authority (APRA) probe into governance, culture and accountability at the Commonwealth Bank does not go far enough and only a Royal Commission will suffice, according to the Finance Sector Union (FSU).
However, the Treasurer, Scott Morrison has revealed the Government’s close involvement with the APRA process, his engagement in serious discussions with the chairperson of the Commonwealth Bank, Catherine Livingstone and has insisted that the APRA process will be more effective in delivering outcome than a Royal Commission.
As well, Morrison has tied his upcoming delivery of the legislation underpinning the Bank Executive Accountability Regime (BEAR) to the process of bringing the major banks into line.
However, the FSU has claimed that the APRA inquiry falls short of what could be achieved via a Royal Commission because APRA is unlikely to have the power to compel witnesses and subpoena documents.
It said that while the terms of reference were yet to be announced, they should be framed to examine the actions of the Commonwealth Bank’s chief executive, Ian Narev, his executive team and the bank’s Board.
“The Finance Sector Union of Australia (FSU) is calling on APRA to ensure that the terms of reference are not framed in a way to allow the bank’s management to escape responsibility by ‘scapegoating’ individual employees or groups of employees,” it said.
“We need to have a close look at all the banks because FSU members report concerns about culture and governance issues across the industry,” FSU national secretary Julia Angrisano said.
“Despite the industry’s desire to bridge the trust gap by conducting endless reviews and inquiries, there is now less trust and confidence in banks than there was a year ago,” she said. “If anyone had any doubts about the need for a Royal Commission a year ago, there can be no doubts today.”
Clarification: An e-newsletter headline in the Money Management e-newsletter of Monday 28 August 2017 read ‘APRA probes CPA’. This was a typographical error. It should have read ‘APRA probes CBA’.
Recommended for you
With a large group of advisers expecting to exit before the 2026 education deadline, an industry expert shares how these practices can best prepare themselves for sale to compete in a “buyer’s market”.
Australia has marked a decade among the best countries for retirement, according to Natixis, but with high inflation threatening their retirement goals, a third say they would get professional advice to improve their chances.
When it comes to the risks of acting as a responsible manager at an AFSL, compliance firm Holley Nethercote has shared a range of red flags that could see them facing disciplinary action from the corporate regulator.
Wealth management platform provider Netwealth has announced a partnership with FinClear to streamline trading capabilities for advisers.
