The 60’s counter culture wasn’t a single event. A decade of driving for social change didn’t start smoothly or easily. It doesn’t take much to draw parallels with the slow, but revolutionary change starting in financial services as a result of the Royal Commission. Here are three things that are handy to know this week - and a succinct 500 words for those who made it through the marathon post of last week.
ANTI - Establishment
It’s time for the establishment Hayne describes in his report to go. Treasury did it’s part during the week by strengthening the penalties. Here are three numbers you need to know - all with the number five to make them easy to remember:
15 year maximum prison penalty for breaches of director’s duties, false or misleading disclosure and dishonest conduct
$525 million cap for companies
$1.05 million maximum civil penalty for individuals
call to action
Calling for basic human rights, students made the most of free speech and freedom of assembly. Everyone who works in any part of financial services needs to take the time to read the final report - don’t just rely on other people’s summaries - and make up your own mind about the scale and scope of the problem and what you can do to contribute to the solution. Don’t just look at the hippie bus with all the cool buzzwords - get involved.
Does your capability framework (yes I’m assuming you have one and yes I’m optimistic that it’s customised for your internal professionals) make explicit the requirement to be honest, fair and reasonable. To exercise due care and skill. Does it follow the sprit of Dylan’s biggest hit Like a Rolling Stone - the captured the spirit of emerging and living with integrity? We see the word culture many times in the final report. What happened to integrity? That wonderful quality of being honest and having strong moral principles. Could bankers learn something from hippies?
DISTRUST of law enforcement
ASIC, APRA and ABA have been told by the government that a follow-up independent inquiry can be expected to ensure changes from the royal commission have been implemented. ABA will be co-ordinating with ASIC to have parts of the banking code become enforceable code provisions. Expected to take place after legislation goes through to give ASIC these powers. Read the full summary from investor daily here.