Banking royal commission final report: Cultural issues and implications

by Anil Hargovan Associate Professor, School of Taxation and Business Law, University of New South Wales
  • The final report calls for deep organisational cultural change which has implications for the board and governance.
  • The final report has put corporate Australia on notice that it would be foolish and ignorant to ignore the recommendations on cultural change.
  • The final report calls for fundamental changes in law enforcement culture which has vast implications for the conduct regulator and the corporate sector

Hands holding bundles of Australian bank notes

The much-anticipated final report on the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry (royal commission) by Commissioner Hayne was released on 1 February 2019.

The commissioner found evidence of conduct that caused substantial loss to many customers but resulted in substantial profit to the entities concerned and, more disturbingly, very often the conduct broke the law or fell short of community expectations.1

The causes were attributed to not only the pursuit of corporate gain, but they were also driven by individual gain that was spurred on by remuneration or other financial incentives that rewarded misconduct.2

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