ISSUES FROM THE BANKING ROYAL COMMISSION:
* CONSUMER LENDING
There is "confusion" around intermediaries' (mortgage brokers, mortgage aggregators etc) obligations towards customers and customer expectations of them. Key issue is properly verifying customers' existing financial situations before products are sold to them.
* FINANCIAL ADVICE
Key issues are conflicts of interest, confusion of roles, bonuses and other incentives and regulator ineffectiveness.
* SMALL AND MEDIUM-SIZED BUSINESSES
Should there be new laws around lending to small business, changes to rules regarding third-party guarantors and better ways of dispute resolution?
* AGRICULTURAL LENDING
Solutions are needed to problems with access to experienced bankers with knowledge of the sector, changes to lending conditions, and the appointment of external administrators.
* REMOTE COMMUNITIES
A better approach is needed in dealing with indigenous communities, which have faced "predatory behaviour", particularly in regard to funeral insurance.
* REGULATION AND THE REGULATORS
May need to simplify the laws governing financial services entities and improve the operations of the regulators and their enforcement and regulatory practices.
* ADDRESSING CAUSES OF MISCONDUCT
Better culture within the banks, changes to remuneration practices, greater accountability of banking executives and intermediaries to act in the best interests of customers.
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