Tuesday, 19 April 2016
That the Senate—
(i) the recommendations of the 2014 Economics References Committee inquiry into the performance of the Australian Securities and Investments Commission,
(iii) that IOOF are being investigated for insider trading and front-running,
(iv) That the insurance arm of the Commonwealth Bank is alleged to have unfairly and fraudulently denied life insurance claims,
(v) that court proceedings have been initiated against ANZ Bank and Westpac for manipulation of the bank-bill swap rate, and
(vi) the lending practices of ANZ Bank and Bendigo Bank that contributed to the collapse of forestry managed investment schemes;
(b) calls on the Government to establish a Royal Commission into misconduct in the banking financial services sector; and
(c) notes That the Australian Greens moved a motion for the Senate to support a Royal Commission on 24 June 2015.
I thank the chamber. The government opposes this motion for a royal commission. The government recognises that Australia's banks and banking executives have not always lived up to the standards expected by the community, but the government does not support appointing a royal commission into banking and financial services. The government continues to support our regulators in ensuring the integrity of our finance and banking system, ensuring consumer protections are watertight and ensuring that malpractice is punished. A royal commissioner has no power to enforce the law, whether through taking prosecution action against a person or body, making findings of a breach of law, or imposing fines or penalties. We need to focus on implementing the reforms needed to strengthen our financial system. We have already started implementing measures to improve consumer outcomes, including improving the professional standards of financial advisers.