Labor puts politics ahead of policy in responding to banking Royal Commission

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While banks will face a tougher future with regulators empowered to crack down on wrongdoers, the 76 recommendations in the Royal Commission's final report were widely seen as a reprieve for the banks, which had been battered as the probe unearthed a string of scandals from charging fees for no service and pushing people into poorly-performing products to meet bonus targets.

Westpac shares surged the most among the big banks, while NAB jumped as much as 5.4 per cent despite its chief executive and chairman being singled out for criticism by Commissioner Hayne.

"I thought it telling that Mr Thorburn treated all issues of fees for no service as nothing more than carelessness combined with system deficiencies when the total amount to be repaid by NAB and NULIS on this account is likely to be more than $100 million". I don't share it.

"But I do agree with his basic conclusion, and that is that we need to close the gap between the culture we have and the culture we want". While we have made mistakes, I believe there is a lot of evidence that we are making sustainable and serious change to once again regain the trust of all our customers. I think this is where we have to be clear.

"As I put to Mr Thorburn, his proposition was that "this money fell into the pocket of NAB accidentally", Hayne says.

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Thorburn was strident in his defence of Henry. I know that it is not so. In a statement issued to the ASX this morning, both men gave a polite finger to Mr. Hayne's comments. "At NAB we are determined to change and accept that we will ultimately be measured by the actions we take".

"Clearly the level of tolerance for misconduct and for breaches is much reduced from now on and there is a much higher expectation on firms to identify, report and deal with misconduct and take steps to make sure it is not repeated", he said.

"More particularly, I was not persuaded that NAB is willing to accept the necessary responsibility for deciding, for itself, what is the right thing to do, and then having its staff act accordingly".

Mr White said the commission recommendation would "hand even more power to the big banks" and showed "just how out of touch he [Commissioner Hayne] is when it comes to brokers".

Investors seemed happy when NAB chief executive Andrew Thorburn announced on Tuesday he was cancelling his planned leave and leading the bank's response to the royal commission.

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Meanwhile, the Australian Shareholders Association welcomed the report and said it expected the industry to work toward a similar outcome to the HIH Royal Commission in 2003, "where there is assurance that every industry participant has carried out their job or role in an ethical and effective manner".

The proposed advice review, in consultation with the Australian Securities and Investments Commission (ASIC), will be delayed to 2022 to allow time for a range of advice and product reforms to take effect.

"I'm talking with you to try to communicate that I know what the plan should be and I'm committed to seeing it through".

"We have said we are not prepared to accept good intentions where urgency, consistency and discipline is required".

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