Author: Rebecca Exley

CBA’s $700 million fine and ANZ’s newest criminal charges.

One thing that cannot be said for the Australian financial service industry, is that it is pedestrian and mundane. In another explosive week we have seen CBA confirm a monetary settlement with AUSTRAC for their anti-money laundering breaches, and ANZ (and others) steal the spotlight for rare, but significant, criminal cartel charges.  CBA’s $700 Million Fine: Following contraventions of the AML/CTF Act by a staggering 53,750 times between 2015-2017, a monetary settlement has finally been reached between CBA and AUSTRAC. By way of background, these breaches were facilitated by the banks failure to implement sufficient and appropriate risk-based controls...

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Conflicts, Culture and the Royal Commission

After several years of significant regulator attention, damning reports into industry practice and a considerable amount of legal and regulatory change, the Banking Royal Commission has cast doubt on whether fundamental conflicts within the financial advice industry, particularly in vertically integrated business models, are being adequately managed. 

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Are ASIC and APRA really the winners in Budget 2018-2019?

On the face of it, the financial services regulators appeared to be some of the winners emerging from the budget announced on Tuesday. The Federal Government had confirmed that they would be receiving an additional $10.6 million and $2.7 million respectively for their assistance in the Banking Royal Commission which, it was claimed, was well overdue (see our previous blogs on Misconduct and Corporate Culture).  However, if you look closely at the Treasury Department’s accounts for ASIC and APRA, you will see that this publicly made declaration of additional funding is thwarted by a cut in funding over the next three years which sees...

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Has Misconduct Become the Norm Within the Financial Services Industry?

Corporate Culture is often regarded as an elusive phrase, lacking clarity and definition, making it an easy term to throw around but very difficult to qualify. Tasked with investigating conduct within the banking sector, the Banking Royal Commission is well underway and is highlighting reoccurring examples of poor corporate culture. But why has it taken the Government and Regulators so long to address these issues?

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Flawed Corporate Culture and Director Liability

It is widely accepted that the term ”culture” is so hard to define that it rarely appears in legislation; the Criminal Code Act 1995 (Cth) being an exception. So, is culture still relevant? Social expectation seems to suggest it is in the wake of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Service Industry (‘the Banking Royal Commission’).

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What do Cambridge Analytica and CBA have in common? It’s not private.

This morning we saw CBA announce that, amid all the other scandals, they have also failed to keep customers’ personal information safe. This was accompanied by Cambridge Analytica confirming that they are closing their doors after five years of trading, for their part in improperly obtaining personal information from Facebook.

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