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:...

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Royal Commission
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The leader of the opposition welcomed the creation of the royal commission. However, opposition treasury spokesman Chris Bowen has claimed that labor differed with the terms and conditions and required the government to communicate with business associations and those affected by financial controversies. Meanwhile, others have tried to extend the terms of reference of the Tribunal. The Australian Banking Union and some of its executives, who initially rejected demands for a royal commission, endorsed the rules and procedures; however, Anna Bligh, CEO of the AssoC1ation, cautioned that the commission might drive up interest rates.
When allegations of wrongdoing appeared during the trials, political pressure was placed on the Turnbull Government to pause the creation of the Royal Commission, and the Finance Minister suggested that if Commissioner Hayne requested more time to prolong the existence of the Royal Commission, the government would respond positively. Besides, the Royal Banking Commission was set up at the end of December, following years of public agitation from whistle blowers, advocacy advocates, Environmentalists, Labour, and several National Legislators (c=au;o=Australian Government;ou=Australian Government Australian Securities and Investments Commission, 2019). The Royal Commission has been asked to determine whether any financial services organization in Australia has been involved in wrongdoing Felony or other cavil cases have to be forwarded to the commonwealth.
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First of all, the government and the financial services industry said that a royal commission's proposal was a nationalıst whinge. There is no question that the big banks' reluctance to pass on the latest 0.25% cut in the cash rate to creditors was gasolıne on fire. Since the presidency, the topic has become more emotionally oriented. Notwithstanding the merits of CBA's $9.45 billion earnings and the $12.3 million take-home salary of Chief Executive lan Narev last year, the news did not benefit the banking industry.
Furthermore, The Senate Enquiry into the ASIC's efficiency has invested substantial time reviewing financial management and, in particular, the Commonwealth Financial planning. For at least the last five years, the Financial Advisory regulations' future has been debated and revised and discussed. Allegations of corruption by the Auditor have led to Considerable media criticism. The Competitiveness Commission 15 researching the risks and advantages of vertically integrated financial guidance, and Bank CEOs are also expected to testify before the Economic Committee of the House of Representatıves every year to address questions on a wide variety of topics (Royal Commission Final Report: Executive Summary, 2020). Many senior corporate executives pass their careers moving from one disaster, public Scrutiny, regulatory briefing, or study to another policy or admınıstratıve reforms can be forced on banks without even a royal commission, significant cultural changes may come from the inside.
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The first round of public hearings began on 13 March, focusing on mortgage lending policies in financial items such as housing loans, auto loans, and credit cards. For 14 days, the parliamentary committee heard from ANZ Bank representatives, ASIC, APRA, Aussie Home Loans, Citigroup, Financial Sector Union, Commonwealth Bank, ING Bank NAB, Smart line home mortgages, and Westpac.
The Royal Commission learned that ANZ had not checked the living costs of home loan borrowers who had been forwarded to the bankıng by mortgage brokers, assuming that this was the brokers' obligation. Despite a conflict of interest in doing so, and because of the handlıng delays, almost 500,000 home loan borrowers have been given an erroneous interest rate for even more than ten years, causing the bank to inflate prices, consumers by approximately $90 million.
Commissioner Hayne also challenged whether the CBA was economically honest in failing to inform consumers of the importance of the fees it offers to mortgage brokers in exchange for selling its goods. The Royal Commission also heard that due to a scheme of trailing fees charged to mortgage brokers, and the CBA compensated brokers for allowing buyers to rent bigger homes and more extended periods than appropriate (Kehoe & Eyers, 2019). The Royal Commission heard that the CBA-owned Aussie Home Loans held commissions where brokering deals were terminated after discovering possible 1llegal activity; and that it refused to report those brokers to the industry association for corrective action.
The second round of proceedings, which focused on wealth management and asset management, began in mid-April 2018. Throughout that round, on 20 April 2018, Craig Meller stepped down as CEO of AMP Controlled after it was revealed at a public hearing before the Royal Commission that AMP paid consumers with financial advice that had not been given and deceived ASIC on several occasions.
In August 2018, it was reported that the NAB affiliate, MLC Limited, had paid some of its clients with advisor fee charges' and workplace support charges on its superannuation goods. By its admission, NAB executives told the Royal Commission that consumers might not have offered any facilıty, despite being paid a premium. The NAB was attempting to mask these expenses as commissions. The next month, ASIC launched legal litigation before the Federal Court charging that NAB-owned annuity companies...