A potent tool for cleaning up misconduct in the industry is being overlooked by the Royal Commission into financial services.
The Centre for Future Work has proposed to the Commission that a system of sector-wide collective bargaining in the financial industry could establish clear and ethical benchmarks for compensation, avoiding the problem of ‘conflicted remuneration’, which is behind much of the misconduct the Royal Commission has exposed.
The Centre for Future Work’s submission to the Royal Commission proposes a uniform compensation system, to apply across the whole industry, consistent with the principles of ethical banking:
by Richard Denniss, Chief Economist at The Australia Institute.
Greed is good. Or so said Michael Douglas’ character Gordon Gekko in the 1980s hit film Wall Street. Gekko went further, stating “Greed, in all of its forms; greed for life, for money, for love, knowledge has marked the upward surge of mankind”.’
by Ebony Bennett, Deputy Director of The Australia Institute.
Watching Brazil’s National Museum burn this week was a tragic reminder that, if we don’t take care, we can snap the threads that bind us to our history forever.
Over a matter of hours, tens of millions of artefacts were reduced to ash. There’s no doubt it’s a disaster, but the news that it was likely preventable makes it a tragedy.
The Australia Institute commissioned ReachTEL to poll the federal seats of Mayo (766 respondents) on the evening of Wednesday 25 July.
A new national poll has asked 1,557 Australians what they think large companies are likely to do with a company tax cut.
A majority (61%) of respondents think that increasing worker’s pay would be the very bottom of the list of priorities for large companies receiving a tax cut.
63% think increasing executive pay, and 56% thought dividends and share buybacks would be the top two priorities.
Over the ten years to 2026-27 when the total benefit to companies is estimated at $65 billion, The Australia Institute estimates the big four banks will receive a ‘gift’ of $9,500 million with Commonwealth Bank alone to receive $2,800 million.
The Australia Institute welcomes the opportunity to make a submission to the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.
We expect the Royal Commission to be swamped by submissions that relate to specific examples of misconduct. Our submission tries to take a step back and consider the extent to which undesirable outcomes are inevitable in the Australian financial system as it is today being characterised by serious imbalances of power and knowledge between the industry’s institutions and their customers.
The Australia Institute made this submission to the Senate Economics Legislation Committee’s inquiry into consumer protection in the banking, insurance and financial sector. Our main concern in this submission is to look at the deeper issues and ask what are the forces that drive ‘bad behaviour’ in the finance and insurance sectors. We start with some general and theoretical considerations following the views of eminent Professor of Finance at Harvard University and President of the American Finance Association, Luigi Zingales. This discussion provides a useful framework for considering the Australian debate and the abuses that have been highlighted in the Australian debate.