Lending to small and medium enterprises

Recommendation 1.9 – No extension of the NCCP Act The NCCP Act should not be amended to extend its operation to lending to small businesses. Recommendation 1.10 – Definition of ‘small business’ The ABA should amend the definition of ‘small Read More …

8.3 What the case study showed

Mr Bessell accepted that consumers were sold products that were of questionable or little value to them, and that the products could have been better explained by the dealers.[1] Mr Bessell agreed that the number and complexity of the products Read More …

2 Culture

I have said more than once in this chapter that an entity’s remuneration and incentive arrangements show what the entity values. Hence, consideration of those arrangements may provide a useful starting point for an examination of the entity’s culture. But Read More …

Introduction

I said in the first chapter of this Report that there can be no doubt that the primary responsibility for misconduct in the financial services industry lies with the entities concerned and those who managed and controlled those entities: their Read More …

4 Issues and responses

The issues arising from the case studies examined in the Commission’s sixth round of hearings are described in detail in the discussion in Volume 2 of this Report. The issues can be organised as follows: issues relating to the manner Read More …

5.5 Agricultural enterprises

Four states – New South Wales, Victoria, Queensland and South Australia – have legislated for farm debt mediation.[1] There are differences between the schemes but, essentially, each requires banks and other creditors to offer mediation to farmers before taking enforcement Read More …

3.3 Capitalising add-on insurance

As will be explained when dealing with other aspects of insurance and how it is sold, I consider that add-on insurance, including add-on insurance offered in connection with the sale of motor vehicles, should generally be sold under a deferred Read More …

2.2 Trail commissions

Trail commissions are valuable to brokers and brokerage businesses. Because they are valuable, brokers and brokerage businesses resist any change to trail commissions. But it is necessary to look not only at how trail commissions are valuable to those that Read More …