The financial industry is today reeling from the largest review into the sector ever. Former Commonwealth Bank CEO David Murray has submitted a damning review in the form of 44 recommendations.

In a nutshell the 44 recommendations support a seismic shift in the finance industry. The current mentality is a ‘too-big-to-fail’ attitude from the major banks. As such they do pretty much what they like and pass on any fines onto their customers. But the Financial Sustem Inquiry recommendations aim to move this by creating greater consumer protection and a focus on consumer welfare.

As it stands now the current regulations are unable to offer adequate protection to customers – and the finance industry know this. The recommendations realise there is no point in passing harsher laws if no one is prepared to enforce them. So they ardently support the extension of powers and funding of ASIC.

Consumer advocates are thrilled. “the bigget thing is a much stronger focus on consumer protections,: said Alan Kirkland from consumer group Choice. “In essence it’s (the report) saying ASIC should have more powers, it should have more money, and that we should be willing to expand those powers further over time.

“It’s a big turnaround in a time when the government’s focus has been on removing legislation.”

Mos experts believe the recommendation proposed by Murray are even harsher than the financial advice regulations put forward by Labor.

They also agree that the recommendation must have fired the final shot in the FoFA debate.

The government responded to the report cautiously. Prime Minister tony Abbott called the recommendations ‘useful’ but refused to be drawn on whther the government would accept any of them.

“We’re going to carefully digest the report,” he said. “We will follow the community debate, we’ll take people into our confidence and then we’ll make decisions.”

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