Criticism and Recommendations of Banking Royal Commission on Financial Markets and Institutions

Running head: REPORT 0
FINANCIAL MARKETS
AND INSTITUTES
JUNE 14, 2019
STUDENT DETAILS:

REPORT 1
Contents
Introduction............................................................................................................... 2
Criticism levied by Banking Royal Commission on regulators.................................................2
Recommendations made by Banking Royal Commission in relation to criticism..........................3
Conclusion................................................................................................................ 6
References................................................................................................................ 7
References................................................................................................................ 8

REPORT 2
Introduction
The Royal Commission has recognised important failures in a significant manner
to handle the customers by financial system. It is stated by Commission that
there is no confusion about the key obligation regarding misconduct in financial
service sector, which lies with companies concerned and entities who regulated
these corporations. However, the range of areas is also identified by Royal
Commission, in which the management or administration of financial
organisations should be supported. The Australian Prudential Regulation
Authority will evaluate the recommendation in a report of future period and issue
the more comprehensive reaction to the recommendation relevant to Australian
Prudential Regulation Authority in a while. APRA is satisfied that various
recommendations made in Report, and supported by government, are constant
with submission APRA made to BRC. It includes the preservation of twin peaks
regulatory architecture, and current mandate of APRA, and broadening of the
Bank Executive Accountability Regime to different sectors. In the following parts,
criticism levied by BRC on regulators and recommendations made by BRC is
discussed and analysed.
Criticism levied by Banking Royal Commission on regulators
The bank, superannuation fund as well as insurer would require to make
payment of additional supervisory charges following Royal Commission into
misconduct in sector of finance. In a paper, it is discussed that the Australian
Treasury suggested that insurer, super funds and banks should jointly make
payment of 236 million Australian dollars in charges for year 2019-2020. This
whole subsidy is increased by 236 million Australian dollars (10.6% increase)
from the year 2018-2019. It is said by the government that this increment