Misconduct & Remediation - Financial Services blog | Deloitte Australia has been saved
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Corporate leaders who find themselves in misconduct-response situations are expected to manage a series of increasingly challenging tasks: take immediate ownership of issues, right the wrongs of the past, overhaul culture and process whilst still operating the core business.
Even when a leader is given license to embark on such a response, their organisation may not have the capacity or capability to perform especially within the timelines set by regulators, shareholders, customers and society.
This is the space where conduct, risk and remediation professional service firms can assist.
Deloitte offers a variety of conduct services and Deloitte Managed Solutions specialises in review and remediation work. We work with organisations to perform retrospective correction of customer loss and can do this at scale, speed and quality.
We’ve done this for many of Australia’s large financial institutions, especially as part of their response to the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry. We’ve assisted in refunding hundreds of millions of dollars to customers and helped embed significant change to prevent reoccurrence. We’ve done similar work for many other public and private sector clients. Our team is proud of our leadership in misconduct response and remediation in Australia.
Our view of misconduct and remediation in Australia
The 2017-2019 Hayne Royal Commission was a pivotal event for corporate Australia generally and specifically the financial services industry.
Many of the post-Hayne remediation programs will be completed in 2021 although the wider impact of the Royal Commission has likely resulted in a generation of leaders influenced by the words of Justice Hayne and Rowena Orr QC.
A clear shift in focus towards conduct issues in other industries and sectors has since occurred. The Royal Commission into Aged Care Quality & Safety is revealing issues relating to the care of our most vulnerable. COVID-19 and bushfire related relief, subsidies, programs and payments may be susceptible to misconduct and customer detriment. For example, organisations who have not yet refunded or modified fixed or ongoing fees despite a change in service due to the COVID pandemic are already attracting the attention of the competition regulator and the public.
We are also seeing an increased focus on consumer credit insurance (CCI), lending, complaints handling, ‘Buy Now, Pay Later’ (BNPL) regulation, wage and entitlement remediation and responses to class actions.
Our remediation approach: ‘Client specific, industry agnostic’
Our ‘client specific, industry agnostic’ approach allows us to take learnings from financial services remediation programs and apply them to any industry or issue. For example, where data-driven risk indicators have had success on financial services engagements, we look at how these can be applied to the public sector to rapidly identify problem areas. Our approach to misconduct is analytical: tracing the patterns, themes and behaviours that lead to remediation across clients and industries.
We also combine the analytical with the technical and have on offer technologies such as the award-winning Deloitte Cube to enable significantly accelerated document processing as well as smart workflow systems to increase the productivity of teams and regulatory technology or ‘RegTech’ to mitigate future misconduct risk.
Strengthening organisations and looking to the future
We’ve devoted significant energy in 2020 to building playbooks and frameworks that synthesise lessons learned from decades of local and international conduct engagements. Recognising that prevention is always preferable to a cure, we use these tools to extend our impact beyond reactive rehabilitation into meaningful organisational change for our clients.
Our Conduct Issues and Solutions Architecture provides senior leaders with a comprehensive framework for identifying and tackling conduct risk at a strategic level, and our Conduct Core Business Learnings and Conduct Program Better Practices provide insights on how prioritising conduct underpins an organisation’s social license and commercial performance.
Get in touch
Whilst COVID-19 has dominated headlines in 2020, misconduct prevention and response remains a common theme in the Australian news cycle. Deloitte Managed Solutions remains focused and ready to guide our clients through what is often a most challenging and critical period of their organisation’s history.
Nick is a Director in Deloitte Managed Solutions where he designs and leads large-scale operations for clients facing significant review, remediation and conduct challenges. With a background in transformation projects, operations and supply chain optimisation, Nick specialises in leading large teams and projects, operational strategy, technology implementation and turnaround. Nick is also a former Aide and speechwriter to the Governor of Victoria and has served on representational duties overseas and on disaster relief operations with the ADF.
Simone is a Manager with experience in remediation, policy and methodology design and conduct solutions. With both technical and operational expertise, she brings a unique lens to these large scale assurance programs whilst maintaining quality and managing stakeholder relationships. Simone is also a passionate advocate for diversity and inclusion, and contributes to driving the firm’s agenda in this space. Prior to joining Deloitte, Simone worked with a range of complex organisations in the area of financial advice and client management.