Royal Commission into Misconduct in the Banking, Superannuation and Finance Sector – Submission on Round 1 Hearings
Consumer Action Law Centre (Consumer Action) has published its submission in response to the first round of hearings before the Royal Commission into Misconduct in the Banking, Superannuation and Finance Sector on consumer lending and add-on insurance.
Consumer Action’s submission focuses on mortgage brokers, car loans, add-on insurance and credit cards. Consumer Action argues in its submission that directors of the big banks may have breached their director duties under the Corporations Act by failing to have systems in place to prevent systemic breaches of financial services law.
It submits that the case studies of Robert Regan, Irene Savidis and Nalini Thiruvangadam involved numerous breaches of the law which were systemic in nature. Mr Regan, Ms Savidis and Ms Thiruvangadam are represented by Consumer Action.
The submission also covers the need for:
- increased penalties to ensure banks cannot profit from misconduct (including disgorgement of benefits illegally obtained, and fines of up to 10% of annual turnover);
- better compensation for victims of banking misconduct where banks breach irresponsible lending laws;
- stronger powers and more resources for the Australian Securities and Investments Commission to enforce the law;
- banks to take responsibility for the sales practices of their brokers and other salespeople; and
- funding for free legal advice and financial counselling to assist victims of misconduct.
Read the summary of Consumer Action’s submission and recommendations for reform here.
180403 Submission on Consumer Lending FINAL
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