Josh Friedenberg
Josh Friedenberg

Treasury Secretary Josh Friedenberg issued a warning to the financial and banking services sector, in which he revealed a road map for implementing the recommendations of the Royal Commission.

Minister Friedenberg pledged to reform the financial and banking services sector by the end of next year, hoping to rebuild consumer confidence after a harsh review of the industry.

In his speech, Monday morning to the Victorian Chamber of Commerce and Industry, Mr. Friedenberg revealed a road map to implement the recommendations of the Heine Royal Commission.

"The need for change cannot be denied, and society expects the government to respond to the Royal Commission quickly," said the Treasury secretary.

The reforms include changes to corporate, pension, insurance and financial services laws as Mr. Friedenberg said it was the most comprehensive in three decades.

The Treasury and the Office of the Parliamentary Adviser will receive $ 9.3 million to ensure that the government's ambitious schedule is adhered to.

Commissioner Kenneth Hine has submitted 76 recommendations for reform, including 54 recommendations to the government, 12 recommendations to regulators, and 10 recommendations to the financial industry.

Mr. Friedenberg says that more than 20 changes will be made or submitted to Parliament by the end of the year, and all changes will be made by the end of next year.

Treasury Secretary Jim Chalmers said that, after six months of inaction, the government now wants to congratulate her for issuing a late timetable for implementing the recommendations.

Mr. Chalmers considered that the victims of banking misconduct would be deeply disappointed, as some recommendations would be delayed by another 15 months.

"The Australians know that the Liberal Party is not serious about dealing with the bad practices of banks. It will reluctantly and late respond to the shocking issues that have been raised. ”

Senator Pauline Hanson says mortgage brokers should be left alone, and argue that they do not take responsibility for mistrust in the banking sector.

The consumer advocacy group has warned that pressure groups are already fighting against changes in the industry, making the path to reform difficult.

"The federal government will need to stand strong against industry pressure to ensure that the Royal Commission's recommendations are implemented effectively," said Choice CEO Alan Kirkland.

He declared, "The only way to solve the problems revealed by the Royal Banking Commission is to ensure that these reforms are passed as soon as possible."