The Banking Royal Commission was established on 14th December 2017 by the Australian government pursuant to the Royal Commissions Act 1902 to inquire into and report on misconduct in the banking, superannuation and financial services industry.
The Final Report of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry was presented on 1st February 2019.
There were 76 recommendation for industry, calling for sweeping changes. First Advantage recognises that the Royal Commission will have a direct impact of our clients in Australia. If you are an organisation that is in the Banking, Superannuation, Insurance and Financial Services Industry you will most likely need to demonstrate or work into incorporating the recommendations to ensure compliance.
Below we have outlined the top six recommendations and how background screening can benefit your organisation in meeting these:
| Commission Recommendation | Benefit of Background Screening |
|---|---|
| That banks require mortgage brokers to act in the best interests of the intending borrower, not the bank providing the loan. Breaching this law would result in a fine. | Background checks can identify prior misconduct and minimize the institution’s risk of working with brokers who would potentially cause economic harm to borrowers. |
| The Banking Executive Accountability Regime laws to be expanded to track those responsible for breaching lending laws. | Background checks can assist with ongoing tracking and help organizations avoid future misconduct. |
| Banks to ensure managers of distressed farm loans are experienced agricultural bankers. | Background checks can help validate whether an individual would have sufficient experience in applicable areas. |
| A new disciplinary system is needed for financial advisers, with all advisers required to be registered. A single disciplinary body would oversee the system. | First Advantage is uniquely positioned to assist with checking and validating professional registrations and certifications. |
| All banking license holders to be required to report “serious compliance concerns” about individual financial advisers to ASIC on a quarterly basis. | A robust background screening program will help reduce the volume and frequency of compliance violations that would require reporting to ASIC. |
| All financial services companies should assess their own culture and governance. | Comprehensive background screening is foundational for a culture of governance and compliance and can only assist in providing necessary assurances to regulators and law enforcement. |
Unsure on how to get started? We can help. Contact us today.
