Ripping The Scab Off

Let’s get the ugly stuff out of the way first.

On two separate occasions I have publicly opposed a Royal Commission into the banks because I didn’t believe it was the best way to clean out the filth that has surfaced this week. You can see my posts here and here. (Remember Jane who wanted to spit in my face?)

For mine, RC’s are like speeding camera’s. Everyone slows down so they don’t get caught and then as soon as they’ve passed the camera they floor it! There’s no policing afterwards and it turns every RC into a joke. It’s just window dressing.

So, after what has emerged this week, have I changed my mind?

Yes and no.

Yes, because its worse than I expected. Disgusting and shocking would be an understatement.

No, because I doubt anything will change.

Let’s go back to December to illustrate my point.

For months and months, Malcolm Turnbull and Scott Morrison vehemently opposed a RC and then on November 30, 2017, the PM stood at the lectern like a big soft banana and announced a RC… because the banks asked him to.

The banks thought it would generate some good PR by acknowledging they had some problems, even though the banks would also control the terms of reference for the RC. I.e. the student would outline the rules for the headmaster.

But on Monday, the school of rorts got a new Principal and the Commissioner, Honourable Kenneth Hayne QC, began ripping the scab off an old public wound and the pus just oozed out. The findings have been vile.

For example, former AMP CEO Craig Meller, redacted ‘an independent’ report by lawyers Clayton Utz no less than 25 times to cover up the blatant misconduct of AMP’s wealth division as well as to exonerate himself of any wrong doing. (BTW…the trusted few at Clayton Utz who signed off on this are just as complicit and should be also impeached).

And then there was the CBA planner who continued charging client fees 10 years after the client had passed away.

And, and, and…

Sadly, there’s plenty more stories where those came from.

So How Could the Banks Get Away With This?
Simple. They knew ASIC would never stand up to them. ASIC are that weak they couldn’t pull the skin off a rice pudding.

And that has been my point all along. Why have a RC if there’s no policing afterwards? Its like poking your tongue out at the speed camera as you drive past. Who’s going to catch you?

Where Will The Rage Go?
This RC will do nothing but make people’s stomach’s churn and get them white hot under the collar. It will get people enraged but the rage won’t go anywhere.

Here’s proof. What hard measures have you seen put in place following the RC’s into institutional sexual abuse or union corruption to make sure it doesn’t happen again?

White collar crime, sexual abuse and union corruption all have one thing in common. The pre-meditation of their behaviours is well planned, carefully executed and far reaching. The effects of a few are suffered by many.

This RC will be rendered useless if ASIC doesn’t grow a spine and some teeth.

So Where Does This Leave The Consumer?
Again, don’t expect anything to change. Over the next few months you’ll hear plenty from Messers Turnbull and Shorten but it won’t amount to anything.

Mr Turnbull will make plenty of generic, nebulous statements about nothing and then do even less.

Meanwhile, Mr Shorten will be in front of every other camera pretending to be Mother Theresa…all the while (conveniently) forgetting he was once the subject of a Royal Commission himself.

And remember this. When Storm Financial collapsed in 2009 and Bill Shorten was the Minister for Financial Services and Superannuation, he constantly knocked backed the idea of a Royal Commission.

But don’t despair, everything will be ok. I have a Moowsletter already lined up for next week called, ‘Who’s The Man In The Suit?’

I’ll be sharing three or four tips to help you identify if an adviser truly has your best interests at heart.

That’s the ugly stuff out of the way. Things start getting beautiful next week.

Have a great weekend!

Adam