In its recent annual report on Australia's four major banks, the Australian House of Representatives Standing Committee on Economics explained that it remains "deeply concerned" about culture and conduct within the sector.
"The Hayne Royal Commission, only five years ago, exposed widespread misconduct driven by poor culture and governance, such as remuneration settings that incentivised harmful sales practices and neglect for customer welfare," the Committee wrote. "Five years after the Royal Commission, much progress has been made in implementing its recommendations, including improvements in governance, culture, risk management and accountability across most of the big four. However, certain recent developments are troubling."
The Committee highlighted the resurgence of problematic remuneration practices, including the lifting of bonus caps, as a particularly troubling development. It also expressed concern about the ongoing culture and governance scandal at ANZ, and urged the bank to take all necessary steps to rectify any issues uncovered by the Australian Securities and Investments Commission's related investigation.
"The Committee wishes to make clear that it is concerned by this reversal of some of the hard-won gains from the Royal Commission, suggesting that the harrowing testimony of victims of misconduct has become a dim memory in just five years," it lamented. "We must not become complacent."
Join The Discussion