Royal Commission: The Thick Edge of the Wedge
The future for financial advice and the client service dynamic
In its wake-up call to the Australian financial services industry, Commissioner Hayne's Interim report encourages a broader consideration of community expectations for every business in the client services marketplace.
The Commissioner’s approach of working through case studies of misconduct, has provided uncomfortable insights into the motivations, cultures and behaviours that have underpinned some of the misconduct of financial services businesses in Australia.
Through the confronting lens of victims, it draws conclusions about the standard of “community expectations” and cuts through years of cascading scandals to shine a light on the state of the industry and expose the very bones of capitalism, inviting a critical re-evaluation of the consequences of breakdown in competition and pursuit of “profit [as the] informing value”.
In taking such a strong position the report speaks to a broader audience than financial services, and doesnot arrive in isolation. The Productivity Commission’s report into competition in the sector, published just a month earlier, also reflects on the apparent disconnect between customers and business.
Published: November 2018
The Thick Edge of the Wedge
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