Spotlight Back on Banks & Super Funds with the Release of Royal Commission Report
04 February 2019
The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry has released their final report and the spotlight is now back on the Financial Services sector with key recommendations for remediation and reform.
The sector is viewing the report as a pathway to improving the industry and there’s no doubt that the Commission’s findings will make for uncomfortable reading.
We’re expecting that, on the whole, the findings will be accepted by industry and the focus will turn to what needs to remediation and reform.
It’s clear that the conduct and culture within some organisations has not always focused on the customer and that the professional mantra of: efficiently, honestly and fairly has been lost along the way.
Key considerations for the sector going forward will be:
- Organisational Culture - its impact on conduct and behaviour. No longer can companies appear to put profits before customers. Cultural shifts will occur from top-down to encourage a risk-minimisation.
- Governance and the ‘active’ engagement and involvement of Boards - Directors need to demonstrate that they are engaged with emerging non-financial risks and are geared to call out any poor behaviour of the management team.
- Review of executive remuneration – pay and reward structures that don’t encourage risky behaviour.
We expect to see increased Regulator scrutiny, greater fines and potential court actions.
Many organisations have already commenced internal programs to challenge their current governance, reporting, compliance and remuneration models.
BDO’s National Financial Services team, is geared to help clients navigate in uncertain times. We’ve continued to expand our team, and have a group of professionals with the skills and credentials to help our clients prepare and respond to issues pertaining to the issues raised during the Royal Commission hearings.
- Tailored assurance and independent review services
- Remediation program support and resourcing
- Board reporting and risk framework reviews
- System and data enhancement reviews
- Culture and conduct assessments
Preparing for the implementation and monitoring of the Banking Executive Accountability Regime (BEAR).
For more information, visit Financial Services Sector Inquiries or for a tailored discussion please contact Tim Aman or a member of your local financial services team.