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Bankers own the entire banking system and that includes the Regulators!
Carry on as you were boys: profiteering from mass fraud!
Banks have nothing to fear from a tough cop on the beat
20 April 2016
by Steven Münchenberg
http://www.afr.com/opinion/banks-have-nothing-to-fear-from-a-tough-cop-on-the-beat-20160420-goaxzj
The balance has to be struck between protecting consumers, and competition that brings innovation and choice.
Unbalanced Munchenberg hasn't a clue about Consumers. He would not know what a Consumer looks like....especially after they have been done over by his bank members.
Greg Medcraft will be pleased that ASIC's funding is going to go up. Christopher Pearce
The Federal Government's reforms to ASIC are a sensible policy response to the current community concerns about banking and financial services. Australians are enjoying the benefits of an extremely competitive banking market, but the community needs confidence that a strong and well-resourced regulator exists to ensure consumers' best interests are preserved.
These are reforms that have been under way for some time. As the Treasurer pointed out, the origins of these reforms go back to last year when the ASIC capability and industry funding reviews were initiated. The banking industry has been in consultation as part of those reviews and supports the broad direction of these reforms.
The $127 million package promises a rejuvenated ASIC that has the ability to deliver the immediate action that the community is seeking, including a strong focus on governance, recruitment and annual performance discussions with the minister. The reforms will also accelerate the law reform response to the Financial System Inquiry. The decision to remove ASIC from the Public Service Act means ASIC can tap into the private sector to get the best legal and financial services talent, and strengthen its ability to oversee market behaviour.
Strong banks make a strong Australia and a strong regulator plays an important role in maintaining public confidence in the banking system and financial markets. The new industry funding model for ASIC is supported by the industry. It's important that contributions are transparent and that the amount of fees levied matches the level of regulation and resources required for ASIC.
The Government's focus on improving the handling of customer complaints is appropriate, including the establishment of a panel to review the role, powers and governance functions of all of the financial system's external dispute resolution and complaints schemes.
The community wants to be assured that if they have areas of concern about their experience with banks or other financial institutions, there is a regulatory institution with the power and resources that can respond in a timely and effective manner and move quickly to take action against poor conduct.
A lot of the current community concern has been driven by some people's frustration about what they perceive as a failure on the behalf of authorities to act on legitimate complaints. This leeches away at public confidence, undermining trust in all the participants in the financial services markets. It's in everyone's interest to restore confidence and trust in the banking system.
The extension of Greg Medcraft's term as chair will help continuity with the range of reforms affecting the banking and financial services industry, in particular the implementation of the recommendations of the Financial System Inquiry. He will be assisted in his work by an additional ASIC commissioner, who will have specialist experience in the prosecution of crimes in the financial services industry. This has been welcomed by the banking industry.
The key to these reforms is getting the balance right, particularly in new consumer protections, to ensure there aren't unintended consequences of unfairly limiting competition or restricting product innovation or consumer choice. The banking industry will be working closely with the Government to ensure that this does not happen, and to generally ensure that we are progressing the positive reform agenda.
Banks have been working hard to set a high benchmark for community service standards, and acknowledge this is a continuous process of improvement. An industry that continues to set high standards should have nothing to fear from a tough cop on the beat. Swift and punitive action against unlawful or unethical behaviour can only be good for public confidence in our industry.
Steven Münchenberg is chief executive of the Australian Bankers' Association
AFR Contributor