The banking royal commission final report: Culture and governance implications

  • The central objective in the final report is to examine what can be done to avoid the misconduct in the financial sectors being repeated.
  • The banking royal commission final report recommendations have application for all entities, not just within the financial sectors, especially on culture and governance.
  • Culture and governance practices must focus on non-financial risk, as well as financial risk.

Closeup of piles of paper

The Final Report of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry was released on Monday 4 February 2019.

As predicted, Commissioner Hayne delivered a lengthy report and a comprehensive set of recommendations across the banking, financial advice, superannuation and insurance sectors (FS sectors) as well as on culture, governance and remuneration (CG&R) and on the regulators. These have already been, and will remain, the subject of intense scrutiny by all stakeholders in the weeks and months ahead.

In light of the principles and issues that Commissioner Hayne has outlined in his report, his recommendations and supporting commentary should be viewed as relevant, not only, of course, to financial service entities but also to entities operating in the non-financial corporate space. The content of the report has universal application, especially on culture and governance.

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