Banking royal commission recommendations flounder, two years on
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updated
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FebFebruary 2021 at 1:44am
The Government has, on some counts, only implemented just over a third of Kenneth Hayne s recommendations so far.
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Key points:
Of its 76 recommendations, only about one-third have come into law
Some key protections have been downgraded or abandoned
Two years ago, the final report of the banking royal commission exposed a culture of rapacious greed, of profits and shareholders being put before customers and the law.
But there has been slow progress to fix the scandals exposed.
The aftermath of the 2018 probe killed the careers of the chief executives and chairs of several of Australia s top banks: AMP, NAB and Westpac. Court battles against IOOF, NAB, the Commonwealth Bank, Allianz and more have been won, lost or are ongoing.
A loss in the NSW Supreme Court and action by the Australian Securities and Investments Commission has seen the Australian Financial Complaints Authority forced to change the way it handled complaints relating to authorised representatives.
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Last modified on Fri 1 Jan 2021 19.56 EST
Everything has been going right for Tash Drujinin of late.
A few months ago the 29-year-old landed a stable job in the financial services sector. When many thousands were being laid off with the pandemic, she was made permanent and the security meant she could finally pay off the $20,000 she owed in credit card bills and personal loans.
It had been a long time coming. As the country celebrated nearly three straight decades of economic prosperity, Drujinin had fallen into debt in her early 20s to finance her escape from family violence.
While Centrelink refused her application for social security, her bank was willing to approve a $15,000 platinum card with a 19% interest rate for the “barely employed” university graduate. That debt would end up costing her thousands in interest payments and, as she sees it, a decade of her life.
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Former mortgage broker convicted for falsifying loan applications
Former mortgage broker Jia Ge of Sydney, NSW has been convicted of giving misleading information in five home loan applications.
Mr Ge is a former mortgage broker and former director of Dollars R Us Pty Ltd ACN 165 438 595 (Deregistered) (Dollars R Us). Mr Ge previously held an Australian credit licence and Dollars R Us operated as a credit representative of Mr Ge.
ASIC’s investigation found that between 16 February 2017 and 17 May 2017, four customers engaged Dollars R Us to help secure loans to purchase properties. The scheme involved each of the applicants paying money to Australian Realty Pty Ltd ACN 611 904 208 (Deregistered) (Australian Realty) of which Mr Ge was a former director. Mr Ge periodically transferred money back to the customers to give the false appearance that they were employees of Australian Realty and earning a regular salary.