CANBERRA: ASIC’s ability to supervise the banking industry isn’t likely to improve until the end of next year because of delays in setting up a new funding and breaching reporting framework for the corporate regulator, according to the man tasked with reviewing the changes.
Former Commonwealth auditor-general Ian McPhee praised the banks’ progress on improving customer remediation and supporting whistleblowers, but his second quarterly report into industry reforms warned movement toward a so-called “user-pays” funding – whereby industry bears the cost of its own regulation – for ASIC has been slow. “Discussions with government and ASIC have commenced, but are in the context of a range of competing priorities within government and its agencies, notwithstanding goodwill on all sides,” Mr McPhee said on Friday.
“As a result, some delays are emerging in completion of the planning and agreement of principles and further slippage is anticipated.” Mr McPhee said measures relating to the industry funding model and breach reporting guidance are likely to be pushed back from an original deadline of June, 2017 to December that year. The Australian Bankers’ Association, which commissioned the report, welcomed Mr McPhee’s observation that the commitment by chief executives to lift the big banks’ games on standards and customer service were being backed by action.
“Banks have made good progress but recognise there is more to be done to make sure the initiatives are implemented successfully,” ABA executive director for retail policy Diane Tate said. “Mr McPhee has recognised that banks are taking actions to deliver meaningful change for their customers and are taking steps to ensure those initiatives requiring additional effort and resources are given the necessary attention.” The ABA also announced that chief executive Steven Munchenberg, who has led the group for six and a half years, will step down when a replacement is found. The ABA did not say what Mr Munchenberg’s next role would be.
