Consumer Action Law Centre has published part 2 of its submission to the Royal Commission into Misconduct in the Banking, Superannuation and Finance Sector today. The submission draws on the experience of the Centre assisting Victorians through legal advice and representation, and financial counselling.
The submission identifies various drivers of misconduct or conduct falling below community standards and expectations, including:
- sales cultures, and the complexity of financial services
- misaligned incentives (including remuneration and commissions)
- inadequate supervision of third party distributors
- delays in regulatory reform
- regulator powers and resources
- inadequate laws and avoidance practices
The submission also analyses the effectiveness of consumer redress mechanisms, including
- complaints and external dispute resolution
- uncompensated losses
- regulator remediation programs
- courts and class actions
- access to financial counselling and legal assistance.