Banking Royal Commission
On 28 September 2018, the Royal Commission submitted its Interim Report on the first four hearing rounds. ANZ submitted its response to the Interim Report on 26 October 2018.
From 19 November to 30 November 2018, the Royal Commission will conduct a seventh round of hearings on policy questions arising from the first six rounds.
The Commissioner has been asked to submit his final report by 1 February 2019.
The Royal Commission’s Interim Report lays out conduct of a standard below what the community expects and, in some cases, what the law requires. The observations of the Commission have rightly dismayed and disappointed Australians.
We have acknowledged to the Commission that ANZ has engaged in misconduct and conduct falling below community standards and expectations.
These acknowledgements include that:
- we failed our responsible lending obligations for some car loans;
- financial advice customers paid fees for advice reviews we did not provide; and
- there have been cases of inappropriate financial advice, together with other poor conduct by advisors.
The Commission found that in other cases ANZ had failed to meet community standards and expectations or may have a case to answer as to misconduct.
The Commission’s Interim Report strengthens our resolve to make ANZ simpler and better able to serve our customers.
We are improving the accountability of our senior executives for failures that harm customers. This includes the implementation of the Banking Executive Accountability Regime (BEAR).
We are also reducing the complexity of the bank, including by reducing the number of products we offer. While no excuse for customer harm, complexity makes it harder to identify and fix problems.
Other steps we are taking to improve customer outcomes are discussed on the following page.
We will continue to engage constructively with the Royal Commission as it finishes its work. Our hope is that the Royal Commission serves as a watershed in the restoration of trust in financial services. This trust is necessary if financial services are to help Australians save, borrow and grow their wealth.