Cormann backs CBA process over Royal Commission
The Federal Government has backed the financial planning remediation processes put in place by the Commonwealth Bank of Australia (CBA) as adequate and as being sufficient to obviate the need for a Royal Commission.
The Minister for Finance and Acting Assistant Treasurer, Senator Mathias Cormann, has made the Government's views clear in a response to the Senate Economics Committee inquiry into the performance of the Australian Securities and Investments Commission (ASIC).
"The Government does not accept the recommendation to establish a Royal Commission into the Commonwealth Bank," Cormann said. "There have already been several comprehensive inquiries into these events and related matters."
The minister said the Government considered that the Commonwealth Bank's Open Advice Review Program and related initiatives "should be given the opportunity to work to resolve any outstanding and unresolved legitimate issues for aggrieved CBA customers".
Cormann also sent a signal that the Government was happy with the direction currently being taken by the major financial planning organisations, saying the Government would "continue to work with all relevant stakeholders in the financial services sector to build on recent improvements to keep lifting professional, ethical and educational standards across the financial advice industry".
Detailing the Government's response to the 61 recommendations of the Senate Committee, Cormann pointed out that a large number of recommendations had already been addressed by ASIC, saying that, specifically, ASIC had agreed to establish an Office of the Whistleblower within ASIC to improve the way it deals with whistleblowers and had increased its monitoring of enforceable undertakings.
Cormann also noted that ASIC had worked closely with the Government on the establishment of an enhanced public register of financial advisers.
The Minister also signalled the Government was sympathetic to a cost-recovery model for ASIC, saying it was something that would bring the regulator into line with other relevant jurisdictions around the world.
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