Turnbull announces Royal Commission into financial services sector


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Mr Turnbull announced a Royal Commission to investigate banks, wealth managers, superannuation providers and insurance companies after the CEOs of the Big Four banks themselves requested an inquiry to end ‘uncertainty’.


“Cabinet has met this morning and determined that the only way we can give all Australians a greater degree of assurance is a Royal Commission into misconduct into the financial services industry,” the prime minister said on Thursday morning. 


“Only the government can ensure that a royal commission is created, established with respected and capable commissioners.”


Prime Minister Malcolm Turnbull arrives at a press conference at Parliament House in Canberra, Thursday, November 30, 2017.

Prime Minister Malcolm Turnbull arrives at a press conference at Parliament House in Canberra, Thursday, November 30, 2017 (AAP)


The Commissioner, once appointed, would have a fixed timeline of 12 months to investigate banks, wealth managers, superannuation providers and insurance companies.


Treasurer Scott Morrison described the move as a “regrettable but neccesary action” to give the banks more certainty amid increasing political pressure. He said the government’s political opponents were using the banks as a “political football”. 


Labor, the Greens and several in the Nationals have been pressuring the government to conduct a sweeping commission of inquiry. 


On Thursday, the CEOs of the Big Four banks wrote an open letter to ask the government to back the calls for an inquiry. 


“It is now in the national interest for the political uncertainty to end,” the CEOs of the Commonwealth, Westpac, National Australia and ANZ banks told Treasurer Scott Morrison on Thursday.


“It is hurting confidence in our financial services system, including in offshore markets, and has diminished trust and respect for our sector and people.”


Move comes as Nationals were set to side with Labor, Greens to force inquiry 


The Turnbull Government has long opposed a Royal Commission into the banks, but was facing pressure from some Coalition backbenchers who were preparing to cross the floor over the issue. 


Nationals senator Barry O’Sullivan had been in discussions all week with Coalition colleagues, Labor and the Greens on his bill to set up an inquiry into the banking, superannuation, insurance and financial services sector.





Labor senator Doug Cameron had also given notice of a motion which would give Senator O’Sullivan’s bill precedence over all government business, with the expectation that there would have been a vote to approve it next week.


The government has long argued an inquiry would be a waste of money and would take too long to deliver any relief to customers already benefiting from government reforms. Coalition Senator Matt Canavan last week said a Commission would be a “lawyers’ picnic”. 



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