Critical Review: Royal Commission and its Impact on the Finance Sector

This essay provides a comprehensive review of the Royal Commission initiated in Australia to investigate misconduct within the finance sector, particularly focusing on instances of fraud, overcharging, and ethical breaches within institutions like the Commonwealth Bank. It examines the government's decision to launch the commission, the potential benefits of uncovering financial irregularities, and the counterarguments suggesting potential economic disruption and damage to Australia's global financial reputation. The review also considers alternative approaches to addressing the issues and analyzes the perspectives of various stakeholders, including the government, the opposition, financial analysts, and the general public, to provide a balanced assessment of the Royal Commission's role and impact on the Australian financial landscape. Desklib offers similar solved assignments and study resources for students.

Running head: ROYAL COMMISSION REVIEW
Royal Commission Review
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The Australian
Feb 3 2018
A royal commission will be launched by the Australian Government into the finance
sector after reporting hundreds of cases regarding scam, over-charging and fraud of ATM and
bank fees. The decision came as a relief after fraudulent transactions was held responsible for
situating the whole banking sector in a menacing territory. Speculations have been going on for
long, however, the decision has been implemented to elevate the banks from the abyss of forgery
and cheat that had plagued it year after year.
The settlement came in the wake of a series of scandals stretching over the last ten years
which constantly pointed towards the flawed and incompetent structure within the banks. The
Commonwealth Bank has created a gulf in public trust and confidence towards it after it failed to
protect money laundering and terrorism subsidizing. The issues came to the forefront after
evidences supported drawing of millions of dollars from Australia by foreign criminal syndicates
that included renowned drug traffickers. Previously Maurice Blackburn Lawyers were hold
responsible for conducting a brief inquiry into the internal on-goings of the banks to which
Commonwealth fully agreed to co-operate according to the sources.
Opposition sources have allegedly commented that the step is completely irrelevant and
an extravagant step on the part of the government which will cause unnecessary distractions
without solving the immediate problem at hand. They have opined that the decision can hint at

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the uncertainty hovering over the financial system of Australia and has the potential to jolt the
confidence of offshore investors.
The intervention however is promising of extracting valid answers for the loss of
hundreds of millions of dollars from the common mass and other punishable offence like forging
signatures, overcharging and generating fake and s investment accounts. Financial analysts have
predicted that the unethical methods and delays in paying licit claims will be made crystal clear
after the Royal Commission’s intervention. Although the action will costs but it will be effective
in detecting the disappearance of million dollars of money, as Jeff Morris, the financial planner
of CBA in Sydney, hopes.
On the other hand, the Royal Commission is surely a challenging and bold step which
could further tumble down the economy. But again there is the all pervasive question regarding
the resolution of a conflict that has tangled millions of public money. On the positive side, one
can rely on the deep inquiry that the Commission has promised to conduct which would place the
banks under some serious scrutiny. According to mass opinion it is a imperative considering the
current circumstances even though at the expense of the reputation of Australian banking sector.
An alternative to the conflicting situation could have been a tight security from the
Australian Government, setting up of a competent panel and to resolve the issue internally so as
to avoid the intervention in full glare. It is true that the scenario has taken a dramatic shape in the
absence of frameworks and policies within the nation’s strongest baking group as the opposition
contends, but right what could have been the other way of seeking justice?

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The Financial Review
Feb 4 2018
The government’s decision to bring in the Royal Commission within the Commonwealth
Bank has been applauded by Prime Minister Malcolm Turnbull who is hopeful that it would save
the banking sector from falling into the pit of treachery and fraud. The inquiry will supposedly
dig into the depth of damages caused to the common mass by some of the prestigious and
eminent institutions of Australia, hopefully by February 2019. The Royal Commission has been
however, given tenure of 12 months to report the government with its findings.
During the last decade there has been enormous amount of political pressure and
corruption which brought uncertainty for the country. According to Turnbull, the step was
‘regrettable’ yet necessary to extract information regarding discrepancies going on in the
financial service sector. The Royal Commission involvement is bound to be free from political
influences or individual interests.
The commission is the only reliable option right now for the people who are waiting for a
compensation fund from the banks who have abused public money and trust. The Liberal
National Party supporters therefore have reasons enough to stand in unity to support the
intercession of Royal Commission. Irrespective of negativities the Commission is sure to go to
the roots of the issue and conduct a systematic inquiry into the series of misconducts which
involves public money laundering and creation of duplicate accounts. The political environment
is surely not in favor of the Commission. People have reasons enough to belief that the bold
decision will bear strength to bring forth the corrupted institutions of power documents and
witnesses. It is perhaps for the first time that a reputed profit-earning company is being subject to

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this massive amount of speculation and scrutiny. The case is an astounding exposure of the
Frankenstein nature of high technology.
It is true that that the Commission will be headed by and highly-estimated judicial
officers there are sufficient reasons to support the judiciousness of the opposition. The decision
will hamper Australia’s relation to other countries. There are possibilities for the foreigners to
lose faith from Australian finance sector and will be discouraged from investing here. There
already have been rounds of opposed decision which have stated that although the fresh inquiry
will bring an answer from the small and large scale banks, yet it would be expensive a move.
Arguments have been going on regarding the audacity of the move elaborating in detail clouds
hovering over the final judgment of the Commission and its accuracy in bringing forth effective
solution to the crisis. The same would also be responsible for casting the entire banking and
financial sector in a negative light which will tremendously affect Australian economy and
growth at a global level. It would positively generate further chaos within the commoners who
fail to understand the intricacies of a banking operation. Why invest on the Commission that will
be bound to deplete resources and management time? Was there not other solutions to reinstate
public confidence in the banks which also happen to be the highest taxpayers in Australia?

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