The Royal Commission Into Misconduct In The Banking And Financial Services Industry

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Running Head: The Royal Commission Into Misconduct In The Banking And Financial
Services Industry
The Royal Commission Into Misconduct In The Banking And Financial Services Industry
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The Royal Commission Into Misconduct In The Banking And Financial
Services Industry
Executive summary
As it is well known unethical practice in the financial service sector is the worst that the
country can experience. Australia has experienced the unethical practices in her financial
institutions, and hence the royal commissioner came up with several recommendations and also
guiding principles to guide the sector. The royal commissioner identified several issues in his
report which included; the interconnection of conduct and reward, the effect of conflict resulting
from duty and interest, the holding entities to account and finally the symmetry of information
and power between b customers and entities. Among the standards that the commission
established was; acting fairly, obeying the laws, avoiding misleading others, provision of fit
services and finally delivery of reasonable services. Justice theory is a concept of moral
righteousness, due rewards and fair treatment to all. Under the justice theory, there are three
major types of justice which include; procedural, distributive and interactional justice. This
theory is more applicable to this paper as the royal commissioner is trying to advocate for justice
to all at an equal level (Cooper & de Valores Mobiliários, 2006). More so the Australian CPA
advocates for justice in the financial sector. Several safeguards exist whereby as a member of the
Australian CPA you are protected when in your work if at all you have the following characters;
integrity, professional behaviour, confidentiality, professional skills and due care and finally
objectivity.

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The Royal Commission Into Misconduct In The Banking And Financial
Services Industry
Introduction
The royal commission released its final report on the financial services entities
misconduct and the normal rules to be introduced. The commissioner has chosen four main areas
to dwell on in the financial sector they are as follows’ banking, insurance, financial advice and
superannuation. The theory of injustice has been selected to explain what the commissioner is
saying in the final report as the theory well explains the issue the customer's experience and the
remedies which are expected to barn those misconducts. In Australia financial market there have
been several misconducts which have never been taken into consideration or taken action
against. As the commissioner explains several misconducts such as profit maximization and
personal gains rather than customer satisfaction, neglecting service provision to customers, and
finally, misusing the market freedom while providing less information to clients by use of
intermediaries (Cooper & de Valores Mobiliários, 2006). The royal commissioner decides to be
dedicated to making sure certain misconducts and injustices never happen again in the country.
Several rules and principles have been set including; respecting and obeying the law, avoiding
misleading customers, be fair in all the operations, provide just services to all without
discrimination, delivering services with care and reasonable skills.
Equality and justice ethics
This theory has its roots from Rousseau who had published contents covering social
contracts which he addressed in terms of equality and inequality. According to him for a person
to surrender his freedom was troublesome. Through his publication, he laid the base for the
introductory of justice ethics. As an ethical theory justice theory tries to explain how individuals

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The Royal Commission Into Misconduct In The Banking And Financial
Services Industry
can productively and socially live together. During the 20th century, another advocate for social
justice who well and strongly advocated for this theory arose by the name John Rawls. Rawls
was strongly influenced by Rousseau philosophies. He believed that all good results must be for
every person, and not for the majority or a group of individuals. Through his philosophy, this set
the big difference between this theory and utilitarianism. Justice ethics puts fairness for all at the
front while it recognizes the right of others in the second place. Justice theory is a concept of
moral righteousness, due rewards and fair treatment to all (Rawls, 2009). Under the justice
theory, there are three major types of justice which include; procedural, distributive and
interactional justice.
Procedural justice majorly is based on processes which are responsible for producing
results. On the other hand, distributive justice represents outcome evaluation of any business
relationship. Finally, interactional justice is dedicated to communication process evaluation
which is used in relationships based on businesses. Justice theory according to Rawls is based on
ignorance of one position or status in the society; hence fair treatment should be exercised to all
regardless of their social status. This theory has two main principles which are equal rights, and
social and economic inequality should be arranged to be of benefits o those who are less
advantaged and also offices positions should be open to all under the law of equality (Rawls,
2009). According to Rawls each most is treated similar to all other people.
From the final report of the royal commission, it is evident that the commissioner is much
concerned about the equality theory. This is evident from his claims in this report as follows; the
aim of the report was to inquire and to check on any conduct in the financial entities in Australia