Changes are happening - please bear with us while we update our site.

Changes are happening - please bear with us while we update our site. Click here to give us your advice and feedback.

CBA, NAB, ANZ And Westpac Share Prices May Face More Royal Commission Pain

The share prices of Commonwealth Bank of Australia (ASX:CBA), National Australia Bank Ltd (ASX:NAB), Australia and New Zealand Banking Group (ASX:ANZ) and Westpac Banking Group (ASX:WBC) could face more Royal Commission pain.

The share prices of Commonwealth Bank of Australia (ASX: CBA), National Australia Bank Ltd (ASX: NAB), Australia and New Zealand Banking Group (ASX: ANZ) and Westpac Banking Group (ASX: WBC) could face more Royal Commission pain.

Why Is The Royal Commission Coming Up Again?

It was around half a year ago that the Hayne Royal Commission into financial services concluded where we heard against a number of misdemeanours by the big banks, the small banks and other financial businesses such as insurance.

But since the surprise Federal Election win by the Liberals & Nationals over Labor, there hasn’t been much news about implementing Commissioner Hayne’s recommendations or punishments for the wrongdoing.

However, that may be about to change this week.

ASIC Legal Action?

According to reporting by the Australian Financial Review, regulator Australian Securities and Investments Commission (ASIC) is going to get to work on dozens of legal cases against financial businesses over the next few months.

ASIC is looking at 13 referrals from the Royal Commission and three times as many case studies with the potential for legal action according to ASIC Deputy Chairman Daniel Crennan.

One of the first cases expected to come before the court is the fees for no service scandal, which is one of the main things that banks are giving customers huge amounts of remediation for.

Government To Implement Recommendations

It has also been reported that the Government plans to introduce a duty for mortgage brokers to act in the best interests of borrowers and target the bonus commissions for sales targets – which could be introduced by the end of the year according to the Australian Financial Review.

The Government will also apparently introduce the rest of the legislation needed to enact Commissioner Hayne’s recommendations.

However, the legislation will be done in a way not to harm the economy according to Treasurer Frydenberg who said: “It will be done in a way that enhances consumer outcomeswith more accountability, transparency and protections, without compromising the flow of credit and competition.”

What Will This Do To Banks?

A lot of what we saw in the Royal Commission should never happen again. And we need the laws to be better and the regulator to enforce them, which hopefully seems to be happening now.

It may mean a bit of short term pain for the banks, but in the long run I think it’s for the best for Australians and the economy as a whole. But it’s yet another reason for why I prefer the reliable businesses in the free report below over the big ASX banks,

[ls_content_block id=”14945″ para=”paragraphs”]

[ls_content_block id=”18380″ para=”paragraphs”]

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

Skip to content