As has been widely reported, The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry (“the Hayne Royal Commission”) released its Final Report on 4 February 2019.
The Final Report made a total of 76 recommendations, 17 of which related specifically to the Australian banking sector. The Report also made several cross-sectoral recommendations pertaining to “culture, governance and remuneration”.
These recommendations are summarised below.
In Gen Advisory’s view, Commissioner Hayne has produced a comprehensive and well-written Final Report. Perhaps inevitably, however, the much-dissected Final Report has satisfied some but not everyone. According to our research, a popular view is that the Report – while laudable – falls short of major structural reform.
Gen Advisory also respectfully disagrees with some of the Final Report’s recommendations and observations in relation to the banking sector.
Notwithstanding the above, Gen Advisory’s overall conclusion is that the Final Report has merit. The Report provides Australian banking institutions with a series of practical recommendations which, if implemented successfully, will ultimately strengthen the Australian banking sector.
Gen Advisory’s detailed research on the implications of Final Report for the Australian banking sector is displayed below.
How Gen Advisory can help ADIs implement the RC’s recommendations
Drawing from our toolkit of services, ways in which we can help Australian ADIs implement the Royal Commission’s recommendations include the following:
- • Ascertaining the ADI’s level of preparedness for the Royal Commission recommendations – including those relating to BEAR and CGR.
- • Delivering bespoke training on the Royal Commission’s findings and recommendations.
- • Delivering bespoke research on a specific Royal Commission-related area of interest.
- • Conducting an internal “audit” of the ADI’s existing CGR arrangements.
- • Designing an ADI-specific technical assistance programme on the Royal Commission’s recommendations.
- • Managing and executing, on the ADI’s behalf, a project to address the Royal Commission’s recommendations.
- • Conducting due diligence on prospective solutions vendors.