Passing laws cannot instill good corporate culture and governance in an organisation, according to Commissioner Hayne. Culture and governance are “affected by rules, systems and practices, but in the end they depend upon people applying the right standards and doing their jobs properly.

The Interim Report of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry (Royal Commission) focused its first public round of hearings on consumer lending. The Royal Commission did this for two reasons. Firstly, because consumer lending affects both consumers and financial service entities equally and secondly, because the kinds of dealings which were being raised in connection with the public hearings all indicated conduct falling below community standards and expectations.