DAVID KOCH:
Treasurer, good morning to you.
JOSH FRYDENBERG:
Nice to be with you, Kochie.
DAVID KOCH:
So, is this basically an extension of the Banking Royal Commission?
JOSH FRYDENBERG:
Well this will be able to implement not only the findings of the Royal Commission but also ensure we get better conduct, better compliance from those working in the financial services sector, because as you know, the Royal Commission was pretty scathing of what they saw, and we need to ensure that those regulatory agencies have all the resources necessary to prosecute and to litigate and ensure people face the full force of the law.
DAVID KOCH:
Okay, so this is more money to the corporate cops to monitor the banks. Will it also be used to help customers with their legal costs that want to take on the banks, because that’s a problem for a lot of customers isn’t it, they complain about the banks, they want to take action, but, hey, how can you fight them in the courts with their lawyers?
JOSH FRYDENBERG:
Well, we’ve just set up a financial complaints authority to do exactly that, to provide free services to people to ensure that their issues with the banks and other financial institutions can be worked through. So, that’s an important step that the Government has taken.
But this is about funding the legal costs, so that the relevant agencies, be they ASIC or the Commonwealth DPP, can ensure that those who are engaged in misconduct face the right penalties and sanctions, because as you know the banks themselves are easily able to fund their own legal cases so we need the Government to be able to fund their own cases in response.
DAVID KOCH:
In retrospect now, the Government was really anti a Banking Royal Commission. Scott Morrison voted against it time and time again in the Parliament. Now from what you’ve seen, was that a mistake, to take that stance?
JOSH FRYDENBERG:
Well, Kochie, everybody recognises that the Royal Commission has uncovered more misconduct, more examples of behaviour that shouldn’t have occurred than they thought was there to start with. Now that the Royal Commission has been conducting a very rigorous and comprehensive process, we await his final report, which is due in February and we’ll take the necessary action.
But this is one series of measures that we’ve already put in place, including more powers for the relevant agencies and more resources for them to ensure the right conduct and culture in the financial services sector.
DAVID KOCH:
Alright Treasurer, thanks for joining us.
JOSH FRYDENBERG:
Great to be with you.