Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Home / 171

What readers think about a bank royal commission

In the Cuffelinks’ reader survey regarding the pros and cons of a bank royal commission (RC), the majority (70%) said they opposed a RC, although there was less agreement on the reasons for the opposition among a diverse range of strong opinions.

Common among supporters were issues surrounding executive salaries and bonuses, the failings of regulators, and fraud and unconscionable conduct.

Those who opposed tended to agree with the arguments put forward in the related article, 10 reasons not to hold bank royal commission, especially time and cost, doubts about what it would achieve, lack of firm terms of reference and a view that banking regulators should be allowed to do their job.

Results summary

Question 1: Do you support or oppose holding a royal commission into the banking and financial services industry?

Among the more than 250 responses, the percentage split was around 70/30 against. This would indicate that while the wider public shows strong support for a RC, people that are more engaged with their investments and perhaps even linked to the industry in some way, cannot see a RC making the difference everyone wants it to.

Can our politicians put politics aside and act on the industry’s shortcomings without the hoo-ha of a RC? It’s a challenging question. Comments for Question 1 can be found here.

Question 2: Do you agree with the points made in Graham Hand's article?

Most of those who took the survey agreed with or were convinced by Graham’s arguments, although four of the points were supported by only a little over half the respondents: issues of customer satisfaction, bank profit levels, benefits of RC recommendations, and alternatives to a RC. Clearly the most agreed upon point was that, for our economy to be strong, we need a strong banking system.

Comments for Question 2 can be found here.

Question 3: Please add any other comments.

Summarising all of the comments is difficult given the wide variety of opinion and many people draw on their personal experiences. Even so, some of the recurring phrases (from each camp) went a little something like:

Comments for Question 3 can be found here. Thank you to all our respondents, including the many who disagreed with Graham's original article. We await future developments with interest.

 

Leisa Bell is Assistant Editor at Cuffelinks. No responsibility is accepted for the comments by any of our readers and they are presented in the spirit of an open conversation.

 

banner

Most viewed in recent weeks

Lessons when a fund manager of the year is down 25%

Every successful fund manager suffers periods of underperformance, and investors who jump from fund to fund chasing results are likely to do badly. Selecting a manager is a long-term decision but what else?

2022 election survey results: disillusion and disappointment

In almost 1,000 responses, our readers differ in voting intentions versus polling of the general population, but they have little doubt who will win and there is widespread disappointment with our politics.

Now you can earn 5% on bonds but stay with quality

Conservative investors who want the greater capital security of bonds can now lock in 5% but they should stay at the higher end of credit quality. Rises in rates and defaults mean it's not as easy as it looks.

30 ETFs in one ecosystem but is there a favourite?

In the last decade, ETFs have become a mainstay of many portfolios, with broad market access to most asset types, as well as a wide array of sectors and themes. Is there a favourite of a CEO who oversees 30 funds?

Betting markets as election predictors

Believe it or not, betting agencies are in the business of making money, not predicting outcomes. Is there anything we can learn from the current odds on the election results?

Meg on SMSFs – More on future-proofing your fund

Single-member SMSFs face challenges where the eventual beneficiaries (or support team in the event of incapacity) will be the member’s adult children. Even worse, what happens if one or more of the children live overseas?

Latest Updates

Superannuation

'It’s your money' schemes transfer super from young to old

Policy proposals allow young people to access their super for a home bought from older people who put the money back into super. It helps some first buyers into a home earlier but it may push up prices.

Investment strategies

Rising recession risk and what it means for your portfolio

In this environment, safe-haven assets like Government bonds act as a diversifier given the uncorrelated nature to equities during periods of risk-off, while offering a yield above term deposit rates.

Investment strategies

‘Multidiscipline’: the secret of Bezos' and Buffett’s wild success

A key attribute of great investors is the ability to abstract away the specifics of a particular domain, leaving only the important underlying principles upon which great investments can be made.

Superannuation

Keep mandatory super pension drawdowns halved

The Transfer Balance Cap limits the tax concessions available in super pension funds, removing the need for large, compulsory drawdowns. Plus there are no requirements to draw money out of an accumulation fund.

Shares

Confession season is upon us: What’s next for equity markets

Companies tend to pre-position weak results ahead of 30 June, leading to earnings downgrades. The next two months will be critical for investors as a shift from ‘great expectations’ to ‘clear explanations’ gets underway.

Economy

Australia, the Lucky Country again?

We may have been extremely unlucky with the unforgiving weather plaguing the East Coast of Australia this year. However, on the economic front we are by many measures in a strong position relative to the rest of the world.

Exchange traded products

LIC discounts widening with the market sell-off

Discounts on LICs and LITs vary with market conditions, and many prominent managers have seen the value of their assets fall as well as discount widen. There may be opportunities for gains if discounts narrow.

Sponsors

Alliances

© 2022 Morningstar, Inc. All rights reserved.

Disclaimer
The data, research and opinions provided here are for information purposes; are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. Morningstar, its affiliates, and third-party content providers are not responsible for any investment decisions, damages or losses resulting from, or related to, the data and analyses or their use. Any general advice or ‘regulated financial advice’ under New Zealand law has been prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. For more information refer to our Financial Services Guide (AU) and Financial Advice Provider Disclosure Statement (NZ). You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Articles are current as at date of publication.
This website contains information and opinions provided by third parties. Inclusion of this information does not necessarily represent Morningstar’s positions, strategies or opinions and should not be considered an endorsement by Morningstar.

Website Development by Master Publisher.