Banking Royal Commission
On Monday 4 February the Government released the final report from the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry. The 951 page report summarises the issues and recommendations from the seven rounds of hearings which covered consumer lending, financial advice, lending to small and medium enterprises, issues affecting Australians in remote and regional communities, superannuation, insurance and causes of misconduct in financial services.
The Government has indicated that it will take action on all 76 of the Commissioner’s recommendations. The Financial Services Council has summarised these recommendations and the Government's response in the attached Summary. For the recommended changes to take effect, it is up to the Government to implement regulatory changes and pass legislative changes through the parliament. Therefore, the recommended changes and reforms are unlikely to take immediate effect. It may take a number of months for some of the recommendations to come into force.
Regulators will also need to determine whether, and how, they will take action following a finding or referral from the Royal Commission.
NAB's divestment of MLC
National Australia Bank has put on hold the divestment and public-markets exit plan of MLC, until at least the second half of this calendar year, the company has confirmed.
Fresh from leadership changes at the bank, with chief executive Andrew Thorburn and chair Ken Henry both recently announcing their departures, NAB outlined the delay to the MLC split in a trading update.
While NAB said its plan to exit the MLC wealth management business had “good momentum under new leadership”, the recommendations of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry are now known and “bring more clarity to the proposed divestment”.
The delay is part of a “disciplined approach” to the exit of MLC, the update noted. The bank will execute a transaction “at the appropriate time”. It also stated that it planned to retain the flexibility to consider trade sale options.
Estate Planning: Making it easier on your family
It’s understandable to not have the answers if you’re asked about what will happen if you pass away. But if you make important decisions now, you could save your loved ones a lot of heartache when you’re gone. The article on Estate Planning below explains how.
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