Following today's round of hearings for the Royal Commission, the Finance Sector Union of Australia (FSU) noted that "banks had better systems in place to track incoming revenue than to make sure customers had been given the ongoing advice they were being charged for."
Referencing ASIC deputy chair Peter Kell, who argued that banks prioritised charging high fees and short-term profits over ethical behaviour, the FSU said: "Concentrating on revenue rather than acting in the best interest of customers has been the cause of much of the misconduct within banking over recent years."
"We expect this round of case studies to identify similar cultural and systemic problems as was identified in round one," FSU national secretary Julia Angrisano said.
"The only real difference is the cultural and systemic problems in financial advice can have more severe consequences for customers than perhaps was seen in some of the case studies in round one," she said.
The FSU has been a consistent advocate for the Royal Commission.
In August last year, Angrisano said: "We need to have a close look at all the banks because FSU members report concerns about culture and governance issues across the industry."
When the Royal Commission was announced, Angrisano said the quickest way to rebuild trust, and develop an ethical and prosperous banking sector isn't via piecemeal reform, committees or self-regulation, but a Royal Commission that "goes to the heart of poor culture."
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