The Australian Banking Royal Commision

[a_unique_person]

You have to love a good Royal Commision. No "right to remain silent" here.

A Royal Commission can be a political hackjob when misused or go off like a firecracker when the Commision gets on to a totally unexpected direction.

If you ever wondered just how badly run banks are, here is the investigation for you. This has only just started and it is now likely to be extended for well over a year. The site of senior executives mumbling, dissembling then being pulled into line is a joy to behold as they try to explain just how it was that they knew that their business practices were unethical but allowed them to fester because it made them a lot of money.

"Answer what you are asked" demands commisioner.

http://www.abc.net.au/news/2018-04-18/banking-royal-commission-continues-amp-cba-grilling/9670432



Financial advisers who sell you whatever it is that makes them the most money, not you.

http://www.abc.net.au/news/2018-04-...-financial-advice-impersonated-client/9692844

A whole bunch of stories, take your pick.
http://www.abc.net.au/news/story-streams/banking-royal-commission/


Knowingly charging dead people fees.

http://www.abc.net.au/news/2018-04-19/how-dead-people-cand-be-charged-bank-fees/9676846

Mortgage scams and ripoffs.
http://www.abc.net.au/news/2018-03-...-highlights-mortgage-broking-conflict/9581330

Cash envelopes filled with bribes, problem gamblers getting credit extensions and a bank manager transferring $35,000 direct to foreign scammers.
It is not The Sopranos, but some of the allegations heard in the first public hearings at the banking royal commission.
The framework around billions of dollars of consumer finance — home loans, credit cards and car loans — was examined this past fortnight.
Here are a few things we learnt about the system of incentives and potential conflicts of interests in the mortgage broking business.

 

[lionking]

I just hope this results in the end of trailing commissions to mortgage brokers. Most borrowers do not know that brokers get commissions every year the mortgage lasts, which leads them to encourage borrowers to refinance time and time again. Even mediocre brokers earn hundreds of thousands a year. I think we are one of the few, if not the only country with commissions like this.

 

[rjh01]

I just hope this results in the end of trailing commissions to mortgage brokers. Most borrowers do not know that brokers get commissions every year the mortgage lasts, which leads them to encourage borrowers to refinance time and time again. Even mediocre brokers earn hundreds of thousands a year. I think we are one of the few, if not the only country with commissions like this.

At the very least it should be law that if a person gives financial advice then they must also fully disclose what income they will receive, both personally and the organisation they work for. Then shoddy, but legal, financial advisers might die of embarrassment.

Edit. Plus disclose all fees and charges.