Senate Committee Recommends Royal Commission into ASIC

The recommendation is there but how seriously will it be taken?

By General Maddox.
(RealNewsAustralia) In a recent article featured here on RNA we showed proof of the continuing fraud going on within the Commonwealth Bank and it’s sub companies that’s been adversely affecting many customers for years. Not only that but the willingness of ASIC (and others) to quickly turn a blind eye when it came to investigating such fraud.

Now, a final report by the Senate Economics References Committee is calling for a Royal Commission into the performance of ASIC.

The report examines in detail the serious misconduct engaged in between 2006 and 2010 by financial advisers at Commonwealth Financial Planning Limited (CFPL), part of the Commonwealth Bank of Australia Group (CBA).

The conduct of a number of CFPL advisers was unethical, dishonest, well below professional standards and a grievous breach of their duties, said Committee Chair Senator Mark Bishop.

The committee is also recommending that all of the “rogue” financial advisers be identified and any breaches in law or professional standards are pursued. Which is one of the actions fraud victim Wayne Styles also has been calling for.

Basically we have Australia’s biggest bank openly committing fraud, Australia’s main financial watchdog (ASIC), who is chartered to monitor and act on accusations of fraud, looking the other way. Meanwhile thousands of Australians are up to their eyeballs in debt as a result of the fraudulent lending activities.

This is not a recommendation that the committee has made lightly, but the evidence the committee has received is so shocking and the credibility of both ASIC and the CBA is so compromised that a Royal Commission really is warranted. The CBA’s focus is on downplaying the extent of wrongdoing and minimising the amount of compensation it has to pay. Meanwhile, ASIC has shown that it is not sufficiently sceptical of the CBA’s actions and cannot hold it to account”, said Senator Bishop.

The Senate Economics References Committee says a “Royal Commission is warranted”. What is the Abbott governments response to all this?

Luke warm at best. The Abbott Government hoses down calls for a Royal Commission was a recent headline out of the SMH on June 26th, 2014.

What was the Commonwealth Banks response to all this? Well they’re simply sticking to their guns and rejecting the committees accusations despite all the proof of the blatant fraud. “We didn’t do nothin'” seems to be their only response.

What’s the likely outcome in this scenario?

ASIC will probably get a wrap over over the knuckles and blame their lack of action on a lack of funding. Australia’s biggest bank, the CBA, will probably boost its compensation budget for the victims all the while still saying they did nothing wrong keeping up the status quo while it’s quietly forgotten about until the next crash.

Let’s not let that happen!