Key points in banking RC interim report

Main points in the executive summary of the interim report of the royal commission into misconduct in the financial sector.

BANKING ROYAL COMMISSIONER KENNETH HAYNE'S INTERIM FINDINGS:

GREED

* "Too often, the answer seems to be greed - the pursuit of short term profit at the expense of basic standards of honesty. How else is charging continuing advice fees to the dead to be explained?"

* "Banks searched for their 'share of the customer's wallet'. From the executive suite to the front line, staff were measured and rewarded by reference to profit and sales."

UNPUNISHED

* "When misconduct was revealed, it either went unpunished or the consequences did not meet the seriousness of what had been done. The conduct regulator, ASIC, rarely went to court to seek public denunciation of and punishment for misconduct. The prudential regulator, APRA, never went to court."

* "When misconduct was revealed, little happened beyond apology from the entity, a drawn out remediation program and protracted negotiation with ASIC of a media release, an infringement notice, or an enforceable undertaking."

STANDARDS

* Financial institutions need to apply "basic standards of fairness and honesty: by obeying the law; not misleading or deceiving; acting fairly; providing services that are fit for purpose; delivering services with reasonable care and skill; and, when acting for another, acting in the best interests of that other".