The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry should result the implementation of a comprehensive Financial Services Code binding on all parties and substantially replacing or consolidating the existing regulatory regime, according to the Finance Sector Union (FSU).
The FSU has urged the formulation and imposition of such a code in a new submission filed with the Royal Commission this week claiming the central issue needs to be underlying culture and fair and enforceable regulation.
According to the FSU, the Financial Services Code needs to cover all individuals and companies within the Financial Services Sector.
“It should impose accountability and responsibility on the senior managers and executives who determine the culture and operations of the banks and other entities within the sector,” the union said. “The Code should streamline current regulations and bring transparency to the way financial service companies conduct their business.”
According to the union’s submission, the existing complex regime of laws and regulations governing the financial sector has failed not only customers but the hundreds of thousands of employees working across the sector.
“It is clear that there are too many organisations, regulatory regimes and methods of control in play. Those who have the power and control in the sector are not being held responsible for their behaviour,” it said.
Commenting on the submission, FSU national secretary, Julia Angrisano said too much of what had been heard to date from the Royal Commission boiled down to issues of culture and regulation.
“We cannot continue to regulate this industry in a piece-meal fashion – it doesn’t serve customers, it doesn’t serve employees, and ultimately it doesn’t serve the community at large. ”
