The interim report of the Royal Commission into banking misconduct is expected to be released today.
Background
Announced on 30 November 2017, the Commission, led by Commissioner Kenneth Hayne, has held six rounds of public hearings into areas of banking including financial advice, superannuation, insurance and consumer lending.
The first session of the first round of public hearings was held on 13 March 2018 and the final public hearing of the inquiry was held on September 21.
The interim report was due to be handed in to the governor-general no later than 30 September, but is expected it could be today.
What we know
This report will identify policy related issues arising from the first four rounds of hearings. These rounds were on consumer lending, financial advice, loans to small and medium enterprises and experiences with financial services entities in regional and remote communities.
Mortgage lending was a key discussion in the first round. It is expected this interim report may discuss many of the questions around broker remuneration and problems with banks’ lending standards.
The industry has already taken steps to address conflicts of interest and other issues mentioned in the hearings, as well as the recent Productivity Commission and recommendations from the Combined Industry Forum (CIF).
However, the industry remains vehemently behind maintaining trail commission, despite it being mentioned heavily during the public hearings.
What's next?
Following the interim report, the Commission will be inviting submissions on those policy related issues identified.
This report is expected to provide something in the way of an indicator as to what we might see in the final report from Hayne in February 2019.
A seventh round of public hearings begins on 19 November, focusing on policy questions arising from the six rounds of hearings.
