Labor establishes new financial misconduct inquiry

The Senate voted 40-25 in favour of the establishment of the inquiry, with only the government senators opposing it, according to a statement from Labor Senator Katy Gallagher.

The inquiry will look at existing legislative and regulatory frameworks to ensure they have Australians best interests at their core.

It will also look at the impact of misconduct in the banking, insurance and financial services sector on consumers as well as incentive-based commission and fee-for-no-service structures.

Further, the inquiry will examine the culture and chain of responsibility in relation to misconduct within entities in the sector; the adequacy of legal advice and representation for victims of misconduct; and the availability and adequacy of redress and compensation for victims.

“Malcolm Turnbull’s continued refusal to establish a banking royal commission means that those who have been ripped off and left with nothing have no way of having their stories heard. Labor wants to change that,” the statement said.

“Mr Turnbull’s refusal to establish a royal commission proves he is the best friend the banks have ever had. He will give a $50 billion tax cut to big business and the banks, but he won’t do anything to stop the rorts and the rip-offs.

“This committee will provide an immediate opportunity for people all around Australia to put their experiences on the record and give their opinion on what needs to change in Australia to better protect consumers into the future.”