Revenue and Financial Services Minister Kelly O’Dwyer has implored the financial services industry to use the banking royal commission as the starting point for regaining the trust of consumers.
At the Financial Services Council’s The Summit 2018 event in Melbourne today, O’Dwyer said it is the responsibility of companies to tackle the industry’s numerous problems head-on.
“The government will be looking to firms to ensure they take all necessary action and play their part in restoring that trust,” she said during her address.
“From an industry perspective, I urge you, as its leaders, to use the royal commission as an opportunity to draw a line in the sand – use it to separate the behaviours, which should not have occurred in the first place, and a new post-commission era where trust is regained and maintained.”
Turning her attention to the royal commission’s hearings on the superannuation sector, she said the distressing case studies examined in the banking sector will be no different in super.
“The royal commission presents an unprecedented opportunity for the industry to reflect on the practices and actions which have resulted in the commission, and so, too, for regulators,” she said.
“Reflect and reform is an appropriate motto.”
She said the government is already pursuing a comprehensive reform agenda to improve the fairness of Australia’s financial system and it will continue to do so as the royal commission progresses.
“And it goes without saying that we will closely study any recommendations the royal commission makes in its final report,” she noted.
“Independent of government action, the financial services industry has a duty to repair trust with Australian customers.
“Key to this is for firms to have effective leadership, good governance and appropriate cultures.”
