Financial Services Royal Commission

The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry was established on 14 December 2017.

The first Royal Commission into the Banking Industry was held from 1935-1937. The Royal Commissioners in 1935-1937 included the Hon Justice Napier of the Supreme Court of South Australia (later Chief Justice).  Justice Napier was granted leave from the Court to conduct this work. Mr Ben Chifley was another Royal Commissioner who had been recently defeated as a Labor MP but later became Treasurer and Prime Minister before unsuccessful attempting to nationalise the Australian banks in 1947. This Royal Commission arose in part because banks were seen to have contributed to the Great Depression.

The current Royal Commissioner is the Honourable Kenneth Hayne AC QC.  On Day 2 of the hearings, the Royal Commissioner observed:

“The industry is a large industry, large participants, lots of people. Things go wrong. It's a human system, therefore things go wrong. Sometimes things go wrong through dishonesty. Sometimes things go wrong because of neglect, carelessness, or just sheer coincidence. I understand all of that. There is a whole raft of law up there governing this industry.

One thing that I may have to look at, I think, is what the attitude, either of the industry generally, if there were such a thing, participants in the industry, is to the notion of obedience to the law. Obedience to the law that governs the way they conduct their affairs. There may be a difference – I don't say there is – there may be a difference between a breakdown in controls and an acknowledgment of breach of law. Treat that as the soliloquy it undoubtedly is, Mr Waldron, or deal with it as you wish. But I don't want people ignoring the fact these are ideas that are at least on the table.” (Royal Commissioner, 13 March 2018, T86-87)

Royal Commissioner Hayne will submit an Interim Report no later than 30 September 2018 and will provide a Final Report by 1 February 2019.