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FINSIA town halls panellist on why we are the way forward

by Lewis Panther SA FIN | 04 Mar 2019
Ethics and professionalism are at the heart of almost half the recommendations in the Royal Commission, according to one of our Town Hall panellists.

Dr Deen Sanders, who will be alongside Mortgage Choice CEO Susan Mitchell at the Sydney Town Hall on March 13, described Commissioner Kenneth Hayne’s final report as “measured and profound”.

The Deloitte Partner said: “By our reckoning 34 of the 76 recommendations speak to issues of ethics and professionalism with the goal of restoring trust in the actions of individuals and corporations.

“Ethics and trust are carved into the very fabric of the recommendations in Hayne’s Report.

“Everything in the final report is about restoring trust, instilling community confidence, and seeking to embed ethical structures and commitment back into the financial services industry.

“As promised, Hayne returned to first principles - the fundamental statements that define the intent of the law that we outline in the Executive Summary - and are the 101 of ethical conduct.

“The strength of the final report is in the way Commissioner Hayne calls for structurally embedding change in the law and practice. He builds in issues of ‘ethical and integrity infrastructure’ through specific recommendations.

“Rather than surprises for the market, the final report is measured and profound. His response is remarkable for its lack of radicalism, as much as its quiet, yet substantive changes.

“Commissioner Hayne wisely used the Interim Report as a tool to challenge the industry. 

“In it and throughout the very public hearings leading up to it, he motivated a deep consideration of complex cultural and ethical issues. These were then worked into his final report as a careful and calm entreaty for change.”

The impact of the Royal Commission will be significant and lead towards more individual accountability, he says.

He went on: “Cultural change is at the heart of the recommendations. Let’s be clear. 

“Everything has changed and the recommendations in the area of ethics will lead to significant change on the path to restoring trust:

“Embedding the Hayne first principles as matters of principle interpretation, and formalising the law as a hard, bright line, will require engaging with ethics and accountability that will shape the industry in a whole new way.

“New regulatory responsibilities and relationships will lead the industry to ‘nowhere to turn’ in the face of regulatory scrutiny; and Increased accountabilities and individual responsibility will sharpen the mind and increase the pressure on individuals in the system.”

FINSIA CEO Chris Whitehead, F FIN, who will be at all the Town Halls, said: “As FINSIA has mentioned in its previous submission, and as Commissioner Hayne has said himself, the banking industry is far too important to go through another royal commission.  The time to say sorry is over, it is now time to get it right.   

“Moreover, when the government says it “is committed to the professionalisation of the financial advice industry” it is a similar strategy FINSIA has been advocating for the whole sector over the past 20 months.”  

Our Brisbane Town Hall is being moderated by Peta Tilse SF FIN, Founder and Managing Director, Sophisticated Access, with Ken Howard, Senior Advisor, Morgans, joining Chris on the panel. 

Jacqui Colwell,  Co-Founder and Chief Risk Officer at Judo Capital, will be joining Chris in Melbourne.




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