BREAKING NEWS: Government shuts down fin services royal commission

BREAKING NEWS: Government shuts down fin services royal commission | Insurance Business

BREAKING NEWS: Government shuts down fin services royal commission
The Government has shut down moves by Labor to introduce a royal commission into the financial services.

Opposition leader Bill Shorten sought a suspension of standing orders in the lower house to call for a royal commission but the government shut down the move with a new inquiry into small business lending practices alongside other reforms, The Guardian reported.

Insurance practices have taken up national headlines this week following allegations against direct insurer Youi about their sales conduct and Commonwealth Bank came under fire earlier this year over alleged misconduct in their insurance branch.

Shorten proposed the areas that a royal commission into financial services and banking should focus on in a letter to prime minister Malcolm Turnbull earlier this week. These included duty of care to customers, Australian regulators’ readiness to prevent illegal behaviour and how cultural, ethical standards and business structures of Australian financial services institutions affect business behaviour.

“Despite several inquiries, new powers, new resources, and a financial ombudsman service, the rorts and the rip offs continue,” Shorten said, according to The Guardian.

“We need to restore trust in our banking and financial system,” Shorten continued.

Kelly O’Dwyer, minister for revenue and financial services said in the statement that the new inquiry, led by the Small Business and Family Enterprise Ombudsman, will be able to address further issues if needed.

“The government has a substantial financial system agenda to improve consumer outcomes, however the ombudsman will be able to identify through a forensic analysis if further reforms are needed.”

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