Labor has today established a Senate inquiry to examine cases of wrongdoing in the banking and financial services sector and to allow victims of financial misconduct, scandals and rip offs to have their voices heard.
The Senate voted 40-25 in favour of the establishment of the inquiry with only the Government Senators voting to oppose it.
The inquiry will also look closely at existing legislative and regulatory frameworks to ensure they have Australian consumers best interests at their core.
Malcolm Turnbull’s continued refusal to establish a banking Royal Commission means that those who have been ripped off and left with nothing have no way of having their stories heard. Labor wants to change that.
The inquiry will examine:
- The impact of misconduct in the banking, insurance and financial services sector on victims and on consumers;
- The impact on consumers of executive and non-executive remuneration as well as incentive based commission structures and fee-for-no-service structures;
- The culture and chain of responsibility in relation to misconduct within entities within the sector;
- Any failures that are evident in the regulatory or legislative frameworks for the protection of consumers;
- The adequacy of legal advice and representation for victims of misconduct; and
- The availability and adequacy of redress and compensation for victims.
The inquiry will include the impact on small businesses. It would also look into the social impacts of consumer protection failures in the financial services sector.
While Labor believes that a Royal Commission would be the superior vehicle to examine these issues and hear these stories, the Prime Minister has acted as a road block to proper justice at every opportunity.
Mr Turnbull’s refusal to establish a Royal Commission proves he is the best friend the banks have ever had. He will give a $50 billion tax cut to big business and the banks, but he won’t do anything to stop the rorts and the rip-offs.
This committee will provide an immediate opportunity for people all around Australia to put their experiences on the record and give their opinion on what needs to change in Australia to better protect consumers into the future.
But we know that only a Royal Commission can deliver the systemic, structural and cultural change that the banking and financial services sector needs.
TUESDAY, 29 NOVEMBER 2016