After a whirlwind week following the implications of the banking royal commission, both NAB Chairman Ken Henry, and Chief Executive Andrew Thorburn have resigned after being criticised for financial misconduct, including million dollars worth of fees for customers with no service in return.
We spoke with financial planner and Curtin University Lecturer, Elson Goh, about what could potentially happen next.
When asked if he expects more CEO’s will resign amidst the drama, Mr Goh said we still don’t know the results of the full impact of the commission..
“It depends on what kind of penalties they will be pinned for, and depends on how far the government will legislate,” he said.
Mr Goh commented on the royal commission failing to address vertical integration, an issue that has been widely discussed and debated.
“Large institutions and banks own or have a huge stake in financial planning firms, thereby reducing the independence that these financial planners can have – that has not been addressed in this commission report, which is a big win for the banks because they can still have their stake in this industry…”
Another unexpected shock is the call for removal or banning of commission, heavily favouring the large as they save on commission payments and competition is reduced – exactly what they want.
Unsure whether or not there will be another royal commission if Labor gets in at the next Federal election, Mr Goh said the market has time and time again proven itself to have something else to work on.
“I suppose it’s always a work in progress…” he stated.