The Commonwealth Bank advice executives who failed to notify the Australian Securities and Investments Commission (ASIC) about the bank’s fee for no service shortcomings had failed to understand their obligations, according to the bank’s chief executive, Matt Comyn.
Giving testimony to the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, Comyn nominated the fee for no service scandal as being an area in which the bank had failed in terms of its ongoing relationship with the Australian Securities and Investments Commission (ASIC).
He characterised the bank’s approach to its relationship with ASIC as being too narrow, legalistic and defensive.
Comyn said that there should have been much greater ownership of the relationship with ASIC at a business level.
Explaining the tardiness with which the bank reported its fee for no service problems to ASIC, Comyn said he believed that people had not understood the nature of the customer relationship and the need to provide a service.
“It was not understood and it should have been,” he said.