UNE's Professor Michael A. Adams, an expert in financial services and corporate law and governance, will give a free talk on the Banking Royal Commission at the Armidale Town Hall on Wednesday night.
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"The Royal Commission has received a lot of publicity," Professor Adams said. "All of us have worries about banks, finances, mortgages, credit cards, and other loans, so trying to explain what the Royal Commission was really trying to achieve, and what it's likely to achieve, is of genuine public value."
Professor Adams came to Armidale as head of the UNE Law School in January. He wants to breach the town and gown divide, and share issues of contemporary concern in a public space.
His talk will last for 40 minutes, with a 15 minute Q&A session. Regional Australia Bank chief financial officer David Munday will also attend to make comments. The talk will be livestreamed to UNE's Sydney campus in Parramatta, and to Malaysia. Professor Adams has also given similar talks in Tamworth and Sydney.
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High Court Justice Kenneth Hayne's nearly 500-page final report into misconduct in the banking, superannuation and financial services industry was published on February 1.
The commission was prompted by allegations that the major banks were ignoring statutory reporting responsibilities, hushing up inappropriate financial planning, improperly trading foreign exchange, money laundering for drug syndicates, and financing terrorism.
The industry was characterised by "greed - the pursuit of short-term profit at the expense of basic standards of honesty," Justice Hayne said in his interim report. He observed that individuals were motivated by gain; that financial services entities had more power and information than their customers; that intermediaries acted in the bank's interest, not the customer's; and that entities were not held to account.
Both sides of politics responded quickly to Justice Hayne's 76 recommendations, Professor Adams said; he is, however, concerned by the government backflipping on mortgage broking last week.
One significant step forward, Professor Adams said, was enforcing Section 912A of the Corporations Act 2001, which required those with an Australian services licence to provide services efficiently and effectively. That provision was not legally enforceable, and no penalties were attached to breaking it.
The government, Professor Adams said, is now committed to making sure both provisions have the full force of the law, including severe penalties. Offenders face potential imprisonment (jail time increased from five to 15 years), and major fines (personal fines increased from $200,000 to $1.05 million, and corporate fines from $10 to $525 million).
The report also made four agricultural loans recommendations, endorsed by both major political parties. These include a national debt mediation scheme for farm and agricultural loans; and only using agricultural banking managers who understand the land (the world outside Sydney's Martin Place, or Melbourne's Collins Street). Where there is a drought or other natural disaster (like the Queensland floods), banks should not start imposing penalty interests; rather, they should take every step to help the business continue, with foreclosure only as an absolute last resort.
The lecture is part of the UNE School of Law's Kirby Seminar Series, named after the Hon. Michael Kirby, the inaugural speaker in 2001. Professor Adams plans to hold this type of event once a month. A conference on social responsibility will be held next month, while the Australian Charities and Not-for-profits Commission (ACNC) commissioner will speak in May.
Professor Adams' lecture Key lessons from the Banking Royal Commission is at the Armidale Town Hall, Wednesday, March 27, from 5.30pm to 7.30pm, including welcome reception and refreshments. Book on Eventbrite.