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The Standard

The Standard is a bi-monthly publication to snapshot financial services regulatory issues and the opportunity to contribute to policy development and submissions.

The First Word

by Chris Whitehead F FIN | 07 May 2019

Welcome to the latest edition of The Standard - the last to come out before Australians vote for a new government.

Politicians of all persuasions have been campaigning for weeks, with a mix of insalubrious accusations against their opponents and claims about why they’re the best bet for the country.

The bottom line is that they’re asking you to trust them to run the country over the next five years by voting for them on 18 May.

So with the subject of trust on everyone’s minds it is definitely an apt time to consider how much trust there is in the banking and financial services industry after the tumultuous events of the past year.

FINSIA’s second annual Consumer Trust Survey clearly shows the sector is suffering from a continuing slide on that front. While the results are probably as easy to predict as an interest rate cut from the RBA - given the revelations from the Royal Commission over the past year - drilling deeper into the findings around trust and our forensic analysis of the financial nous of family members who make the financial decisions is a real eye opener.

What is probably most alarming is the disconnect between consumers who claimed to be confident in their finances yet had poor financial habits and a misunderstanding of even basic financial concepts.

Our main article focuses on the survey that was carried out following the Final Report in February and shows just why we should remain committed to a goal of greater professionalism.

Elsewhere, we have a story about how APRA is looking abroad to other regulators as it beefs up enforcement taking note from the International Money Fund.

And Lisa Claes, CEO of data business CoreLogic International, talks to The Standard about mortgage brokers following Royal Commission recommendations they lose trailing commissions.

Open Banking regulations that have already been hit by a six month delay come under the spotlight in the final article. And it’s clear that delay might not be long enough for some institutions resistant to change.

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