BULAW 5915 Corporate Law Semester 2 2020 Written Assignment Total maximum marks: 100, weighted to 30% of the final mark for the course Due Date: Friday of Week 9, 11.55 pm (through Moodle) Length:...

1 answer below »
BULAW 5915 Corporate Law
Semester 2 2020
Written Assignment
Total maximum marks: 100, weighted to 30% of the final mark for the course
Due Date: Friday of Week 9, 11.55 pm (through Moodle)
Length: 2500 words
    
    
Background: In December 2017, after years of opposition, dismissal and resistance by the
Federal Coalition Government and the Australian financial sector, a Royal Commission into
Misconduct in the Banking, Superannuation and Financial Services Industry was finally
appointed under Commissioner Kenneth Hayes. The Commission examined the behaviour
of the big banks (ANZ, NAB, CBA and Westpac) as well as a range of other organisations
involved in the sector (AMP and OOOF being two). The Commission spent a significant
proportion of 2018 hearing testimony from a range of witnesses, including those from the
financial sector (the banks and financial providers), business lo
y groups (Australian
Bankers Association), consumer and support organisations, law enforcement agencies
(ASIC and APRA) and affected consumers. The media reported some extraordinary
admissions and findings. In the end, however, many commentators expressed
disappointment with the final report of the Commission, seeing it as a “damp squib”. The
market also apparently perceived the report as weak compared to what was anticipated, with
ank stocks rebounding in price and demand for the trading days after the release date of
the report.
The major findings of the Commission were as follows – some resulted in promises by the
Commonwealth Government to act on the findings and recommendations:
• That ASIC and APRA consider criminal charges against organisations linked to the
“fees for no service” practice (but no organisations were named)
• That ASIC oversee the superannuation sector
• That APRA and ASIC be empowered to impose civil penalties for
each of
superannuation regulation (along with other modifications)
• That a national farm debt mediation scheme be established
• That a last resort compensation scheme for consumers and small business be
established
• That APRA and ASIC enforce via penalty regimes and legal action rather than issue of
infringement notices
• That ASIC and APRA be scrutinised by a regulator-oversight body
• That mortgage
okers be paid a fee/levy by customer, not financiers
• That car dealers be limited in “add-on”: financial packages they could sell
Questions: Note: these questions are not the same size. Your discussion should
focus mainly on questions 4-6. However questions 1-3 are important because they
provide background and context to the other three. The approximate allocation of
marks (out of 100) will be as follows.
Q1: 5 marks
Q2: 5 marks
Q3: 20 marks
Q4: 25 marks
Q5: 20 marks
Q6: 25 marks
1. Why was there pressure exerted on the Federal Government to have a Royal
Commission?
2. What arguments did the Government and Financial Services Sector use to reject the
call for a Royal Commission?
3. Using one bank or other provider as an example (so you can use either IOOF, NAB or
any other provider testifying before the Commission), what governance issues did the
Commission investigations and hearings identify for that provider?
4. From a governance perspective, how has that provider responded to the Commission
findings (not just in words)?
5. From an enforcement perspective, what has ASIC and APRA done to address the
criticisms raised in the report?
6. What (if any) implications do those specific findings have for corporate governance
more generally in Australia? (When answering this question, consider the Principles
of Corporate Governance on the ASX website)
Strongly recommended: if you can access a copy, either online or hard copy, read
“Banking Bad” by Adele Ferguson, ABC Books. It is a very readable account of the
culture of greed deeply embedded in these financial institutions and of the “high”
points of the Inquiry. There is also a recording (available through the University
li
ary, see citation below) of the Four Corners report on the ABC –
oadcast three
years prior to the Commission, and also entitled Banking Bad.
O'Brien, Ke
y, Ferguson, Adele, Bishop, Mark, Blanch, Merv, Blanch, Robyn, Braund,
Jan, Swan, Merilyn XXXXXXXXXXFour Corners: Banking Bad (Four Corners). Informit,
Melbourne (Vic.).
Answered Same DaySep 23, 2021BULAW5915

Solution

Hartirath answered on Sep 24 2021
50 Votes
Misconduct
Misconduct
Student Name:
Unit Name:
University Name:
Date:
Contents
Introduction    3
Solution1    4
Solution 2    6
Solution 3    8
Solution 4    10
Solution 5    10
Solution 6    11
References    12
Introduction
The Royal Bank, Bank Pensions or Financial Services business Misconduct Commission, also recognized as Royal Commission of Banks and Royal Hain Commission, is a Royal Commission established by Government of Australia under the Royal Commission Act 1902 on December 14, 2017, to investigate or report misconduct in financial services, pension moreover banking industries. The establishment of the committee depends on the media revelation of the culture of greed in various economic institutions in Australia. A subsequent parliamentary investigation suggested the Royal Commission, pointing out the lack of rigid intervention by applicable government departments, or later evidence that economic institutions participated in money laundering activities against drug cartels, turned a blind eye to te
orist financing, or avoided statutory reports Liability and misconduct in foreign exchange transactions (Brown and Minor, 2015). The former High Court Justice of Australia, Mr. Kenneth Madison Hayne AC·QC, was the sole commissioner or submitted an interim status to the Governor of Australia on September 28, 2018. The report was submitted by the government to the Parliament the same day.
Solution1
Opposition leader Bill Shorten supports the establishment of RC; However, the spokesperson for the opposition Ministry of Finance, Chris Bowen, stated that the Labour Party does not agree with the expressions of hopes and reference that the government and consumers Groups and groups affected by consumers to negotiate (Athanassopoulou, 2006). At the same time, the Green Party tried to expand the committee's expressions of reference. The ABA and a few of its members, which firstly opposed the requirement for the establishment of RC, supported the expressions of reference; supported the terms of reference; However, Anna, the chief executive of the association · Anna Bligh warned: The committee may raise interest rates (Brown and Minor, 2015).
Misconduct based on financial services, pensions, and banking led to recommendations and arguments for appointing the Royal Commission to conduct the case (Mahadew, 2016). Due to multiple misconducts in these industries, the federal government was forced to appoint a royal commission for this case. The misconduct was found to be related to housing, care, and education loan regulations as well as credit cards and other insurance-related products. These misconducts affected ordinary citizens of the country, which put pressure on the federal government to appoint a royal commission to appoint the case. There are also some issues related to the financial consulting industry, such as the cost of failing to provide clients with financial consulting and the improper behavior of the consultant. The committee invites individuals or entities to use online forms for public submissions and specifies those who need further help via phone or email (McCahery and de Roode, 2018). The main purpose of submitting materials is to find out the nature of the supposed misconduct, the aspects leading to misconduct, moreover, the steps taken to solve the complaint as well as the outcome of the protest. The main role of the committee is not to solve person complaints, has not yet understood the systemic failures that may lead to complaints (Brown and Minor, 2015).
The RC conducted seven rounds of public hearings within 67 days, convened around 129 witnesses, or reviewed more than 10,000 public opinions (O'Brien, 2019). The main issues involved personal financial management, pensions, and small business financing.
The commissioner identified the following topics:
1. A few characteristics of Australian banking business: background documents
2. A few characteristics of Australian mortgage
okerage business: background documents
3. A few features of Australian auto financing: background documents
4. Daily customer credit-an overview of the Australian laws regulating customers housing, credit cards moreover car loans
Solution 2
Both the government and the financial services department opposed the call for the establishment of a royal commission to cover up misconduct within their departments (Brown and Minor, 2015). Some of those opposed to the Royal Commission include Malcolm Turnbull, Barnaby Joyce, Kelly O'Dwyane, Scott Mo
ison, and others related to the government and the financial sector. People associated with government departments defended themselves by saying that the main reason for opposing the Royal Commission was to help customers, not to make their lives busier (Singleton and Reveley, 2020). The main reason for opposing the Royal Commission is to cover up wrongdoing in finance and banking. The last report of the Royal Commission affected the vast majority of the population. The Royal Commission sheds light on the schemes that these industries have developed to avoid scams to collect additional payments from customers.
Of course, the problem of Royal Commission is not mainly related to the failure to pass a rate cut. This is just to illustrate how each headline that affects the bank sparked debate (Sternberg, 2013). The initial call was driven by a Senate investigation two years ago, which suggested that the RC investigate the CBA’s financial planning department’s “forgery and dishonest concealment of material facts” (Brown and Minor,...
SOLUTION.PDF

Answer To This Question Is Available To Download

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here