Banking Royal Commission report levels playing field for consumers against big banks and insurers

Published: Comments:
Australian Government Business Business & Economy Law & Safety Money & Finance

Social:   

Today's banking Royal Commission final report will help to level the playing field for consumers in an industry that for too long has been skewed towards the interests of big banks, financial institutions and insurers according to Maurice Blackburn Lawyers.

Maurice Blackburn Superannuation and Insurance Law Principal Josh Mennen said the recommendations made by Commissioner Hayne would help finally to re-balance the interests of consumers within the financial services and insurance industries.
 
"Today's recommendations won't see a fundamental rewrite of the frameworks underpinning the financial services and insurance industries, but they will be pivotal in helping to tip the balance back towards consumers – something that is long overdue," Mr Mennen said.
 
"These recommendations will help to level the playing field by delivering much better negotiating power to consumers in the products and services they are paying for across a range of areas, including mortgage broking and insurance.
 
"We particularly welcome the call for an unfair contracts regime for life insurance as a major win for consumers.
 
"It is crucial that consumers can have confidence that if they enter into a life insurance policy in good faith that this won't be avoided – as we have seen time and again insurers use all sorts of excuses to avoid paying out insurance on valid claims and this must end.
 
"Similarly the Royal Commission's recommendation of enforceable code provisions with respect to the Life Insurance Code of Practice is welcome, as is the call for sanctions to be imposed on any insurers who breach the code.
 
"For any code to have teeth it must be enforceable with ASIC oversight – we have repeatedly called for this as the current life insurance code of practice has all the bite of a wet lettuce.

"The industry has largely ignored our calls for a robust code, and hopefully today's report is a further wakeup call that the public will not stand for such a lax approach to a code of practice.
 
"The recommendation that trustee breaches of the Superannuation Industry (Supervision) Act (SIS) be met with a civil penalty is also welcome, this is clearly needed after the Royal Commission exposed retail super funds for fee gouging and other practices that put profit before their members.
 
"We also welcome the call to ban commissions for mortgage brokers which have led to countless consumers being granted excessive unsustainable debt.
 
"Financial advisers have long been banned from collecting such commissions but somehow mortgage brokers have continued to ride the training commission gravy train with minimal scrutiny and this recommendation will help to ensure the law can now similarly catch up with respect to the mortgage broking industry.
 
"We also welcome the much-needed recommendation of a compensation scheme of last resort to compensate those victims of negligent financial advisers who have gone bust and can't pay up – we have made repeated calls for this to numerous reviews over the years and there has been no good reason to not act on it.
 
"We are pleased to see that the Federal Government at last are now establishing this in light of the Royal Commission's report and we welcome its undertaking to have the scheme compensate losses dating back to 1 January 2008.
 
"Finally, it must be acknowledged that this Royal Commission would not have happened or uncovered the many shocking stories it has without the significant contribution of whistleblowers.
 
"This inquiry has shown more than ever why strong whistleblower protections are crucial in Australia to clean-up corporate misconduct, and we continue to support reforms to deliver this including a reward scheme for those who speak out," he said.

 
Maurice Blackburn Lawyers :
76 Wises Road, Maroochydore
07 5430 8700
07 5443 6711
Maurice Blackburn Lawyers
Showing 10+ recent articles for this business
Lawyers welcome lifting deeds of release for abuse survivors 14 June 2019 | As the Royal Commission made clear, many survivors of historical abuse were forced to accept completely inadequate settlements from major institutions and sign deeds as part of this that saw them having to waive... More information...
Maurice Blackburn seeks super fees redress from AMP 02 May 2019 | Australia's largest class action law firm, Maurice Blackburn Lawyers, has today filed the first class action seeking compensation for AMP superannuation fund members allegedly stung by unreasonable fees. The case... More information...
Landmark High Court trial to test if Constitutional 'aliens' power applies to Aboriginal Australians 07 May 2019 | Tomorrow a landmark trial will be held in the High Court of Australia to determine an important threshold question as to whether Aboriginal Australians can be considered an 'alien' under the Constitution and, as a... More information...
Uber set for epic Supreme Court showdown as class action is filed 03 May 2019 | Global ridesharing giant Uber will face potentially one of Australia's biggest class actions, as thousands of taxi, hire car, charter vehicle and limousine drivers and licence owners across the country join forces... More information...
New research: more than half of Australians have no Will, many in the dark about what happens without a Will 09 April 2019 | More than half of Australians do not have a Will and of those, almost 40% have no idea what happens to their assets in the event they pass away without a Will, according to new research commissioned by Maurice... More information...
Lendlease to face shareholder class action investigation 04 April 2019 | Construction giant Lendlease Group (LLC) is set to face fresh legal claims it breached the Corporations Act by failing to properly inform the market of serious problems in its Engineering and Services Business... More information...
Parliamentary report delivers scathing indictment on national redress scheme and must be acted on 03 April 2019 | Lawyers for abuse survivors have welcomed a parliamentary committee report released overnight, with the report a scathing indictment of the national redress scheme that calls for major amendments to ensure the... More information...
First banking class action post Royal Commission filed 21 February 2019 | The first class action against a big four bank since the publication of the Hayne Royal Commission Report has been filed today in the Federal Court, with Australia's leading class action law firm Maurice Blackburn... More information...
MediVac bill to ensure timely medical treatment for refugees and asylum seekers in offshore detention 12 February 2019 | Social justice law firm Maurice Blackburn has tonight welcomed the passing of a bill in the House of Representatives to get sick people out of offshore detention for medical assessment and treatment in Australi... More information...
AWU raids trial set to get underway tomorrow in the Federal Court 09 February 2019 | The case is being run by Maurice Blackburn Lawyers, who are acting on behalf of the AWU, and was brought following unprecedented Australian Federal Police (AFP) raids on the union's headquarters, which were... More information...



Social:   
comments powered by Disqus

All articles submitted by third parties or written by My Sunshine Coast come under our Disclaimer / Terms of Service