The banking, superannuation and financial services Royal Commission has made 76 recommendations to address industry misconduct and Treasurer Josh Frydenberg said the Federal Government will act on each of them.
The Treasurer has put the blame of industry misconduct solely on Australia's financial services companies, quoting Commissioner Kenneth Hayne to say "there can be no doubt that the primary responsibility for misconduct in the financial services industry lies with the entities concerned and those who managed and controlled those entities."
"Too often the conduct within our financial institutions has been in breach of existing laws and fallen well below community expectations. The price paid by our community has been immense and goes beyond just the financial," Frydenberg said.
"Businesses have been broken, and the emotional stress and personal pain have broken lives."
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The Royal Commission conducted seven rounds of public hearings over 68 days and called more than 130 witnesses. Superannuation and financial advice accounted for 21% of the 10,323 public submissions.
Responding directly to Hayne's final report, the Treasurer and the Federal Government has acknowledged current and future policy initiatives aimed at focus on improving financial services for consumers.
For the first time the Government will establish a compensation scheme of last resort to ensure that consumers can have their case heard "and be confident that where compensation is owed it will be paid."
Frydenberg added the Government's principal focus is on "restoring trust in our financial system and delivering better consumer outcomes, while maintaining the flow of credit and continuing to promote competition."
He said the Royal Commission's final report, and the Government's response, "strengthen and expand the protections for consumers, small business and rural and remote communities."
"Second, they raise accountability and governance standards. Third, they enhance the effectiveness of regulators. Fourth, they provide for remediation for those harmed by misconduct," Frydenberg said.
"The Government is confident that the actions announced today will put in place the legislative framework necessary, providing the regulators with the powers and the resources to hold those who abuse our trust to account. In doing so the community's trust in our financial sector can and will be restored."
Read Labor's response here.