CHOICE membership

Royal Commission into the Banking, Superannuation and Financial Services Industry

superannuation
banking
financial_services

#263

Another article about the banks.

Perhaps they were just misunderstood. image

What a difference a Royal Commission makes. image


#264

But wait. There’s more. Looks like things are starting to heat up for the banks.

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#265

ARPA chief admits that the banks need better policing.

Does this mean that ARPA might actually start doing their job?

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#266

Not while they are:

  • kept on a short leash by the Government,
  • underfunded, and
  • have such a close relationship with the industry they are meant to be overseeing.

#267

The “good” news just keeps on coming.

Banks. The gift that keeps on taking.


#268

And the grubby stories about the grubby banks just keep on coming.


#269

The foundation is the executive - lopping the branches doesn’t make the roots pure …

Is there anyone else who feels this whole thing will be an amazing hoax paid out with a few relatively minimal penalties and a lot of ordinary folk crucified because conveniently they have no voice?


#270

From past lives I suspect the executives who identified and sacked those 200 staff will not only reject responsibility for any of it, they will receive generous bonuses for taking action. If that comes to pass it reinforces the board is as culpable as anyone but they will continue to fly under the radars unless it gets as bad as AMP.


#271

Not that hard to do?

The AP.RAdar has been broken for a very long time.
In 2010 when assisting with my elderly (80’s) parent’s personal and business tax returns for 2009, it was evident they were paying the CBA for advisor’s fees over many years, having seen the ‘free’ Advisor perhaps only twice in that time. The two product recommendations they had taken were doubtful. They were asset rich income poor self funded retirees, although my father was still running the family business at his 80th for that reason.

The fees only stopped after both had passed away and the debited account was transferred to an estate account with a different bank. Were the fees deducted after death? Yes, and the bank knew of the circumstance because they paid for the funeral out of one of the accounts for the last to pass more than 5 years ago. Only the financial services division of the CBA had the authority to stop the debits, apparently. The RC reminds me of a band aid, where triage in emergency might be more appropriate.

Equally notable was that their accountant an ex ATO staffer, quietly added the advisor’s fees to their tax returns without raising one eye brow.:volcano:

At the time the task of taking the bank on, and without the victims there for support was too daunting considering the likely outcome. It was minor, given all the other estate issues that needed resolution. Which is also perhaps part of how the CBA got away with it for so long. Lots of little transactions soon make up a very big profit. Of course private advisors have been charging trailing commissions for decades for nil service. It has never been a secret even before the FOFA reforms legislated by the 2012 Federal Parliament.

It is one of life’s experiences that motivates to be more than a casual observer as a member of Choice.


#272

I agree.

Until there are harsh penalties imposed upon the senior executives under whom the malfeasance occurred, there will not be any real incentive for:

  • senior executives to take active responsibility for what is happening under them,
  • broad reform, or
  • preventing future chicanery.

#273

Here are our three key takeaways from the banking royal commission’s interim report:


#274

The bad news for the banks just keeps on coming.


#275

An article about Afterpay shares taking a nosedive ahead of the Senate inquiry into “debt vultures”.

I expect that the unhappy customer experiences with these bottom -feeders will probably make the banks look like nice people.


#276

I think they are no worse than any lender, and if you use the products wisely perhaps a lot better than some Payday lenders as the interest charge can be nil with a small monthly service charge. The problem arises when because of improper assessments the client is given access to sums they cannot service adequately and then pay penalties for missed payments.

The Banks I feel are far worse than this as they also improperly assessed clients and did other improper practices when they were bound by stricter rules but could easily negotiate their way out with less than effective watchdogs and still try to make it look like they care.