Malcolm Turnbull furious with bad bankers


MALCOLM Turnbull wants bankers and financial advisors to provide general language advice to their customers and record their conversations.

The prime minister is angry and disappointed with disclosures about banks and financial planners excavated by the Hayne royal commission and says that there are too many cases where customers were not put first.

"Banks and financial advisors have a solemn duty to think about the interests of their customers and customers first," said Turnbull told reporters in Sydney on Saturday.

When the royal commission was told on Friday that AMP could face criminal prosecution to lie to the company's regulator, Mr Turnbull said his government would ensure that those responsible were taken into account.

"We are determined to do everything to ensure that this does not happen again," he said.

"Those who have done the wrong should be kept accountable – whether they are financial advisors, whether they are directors, whether they are directors – that's crucial."

Mr Turnbull has told the banks, that they should change their processes to advise customers that narrative papers were often written "by lawyers for lawyers" and difficult to understand.

"It is very important that products are explained in plain language and I believe that by 2018 we will ensure that the discussion is actually registered." He told Weekend West.

"If there was a problem, you could see if the advisor actually did the right thing or not."

While Mr. Turnbull admits that it was a "political mistake" not to call the Royal Commission earlier, he does not accept responsibility for any abuse that has taken place in the banking and finance sector.

"The responsibility for wrongdoing lies with the people who did the clock. Let's be clear about it," he said.

Liberal MP Sarah Henderson has demanded that ASIC be revised after the company's regulator has admitted that it is being negotiated for prosecutions and has only launched a single criminal case in the last decade.

"ASIC's duty to the Australian people is to be a feared and effective regulator, and the score has fundamentally failed," said Mr Henderson. Meanwhile, the pressure on AMP's chairman and board has risen after lawyers of the Royal Commission have suggested that Australia's largest asset manager could face criminal charges.

Senior Adviser, Assisting Commission Rowena Orr QC, said AMP and its consulting companies misled ASIC 20 times from 2015 to 2017 on the nature and extent of its fees-for-no-service practices.

The out-of-service service scandal has already claimed AMP CEO Craig Meller's job and wiped out 2.2 billion. Dollars of AMP's market value during the two-week financial consulting consultation of the Commission.

There is now increasing speculation about the future of AMP chair Catherine Brenner, where the board allegedly prepares to hold a crisis meeting on Sunday.



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