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BFCSA investigates fraud involving lenders, spruikers and financial planners worldwide.  Full Doc, Low Doc, No Doc loans, Lines of Credit and Buffer loans appear to be normal profit making financial products, however, these loans are set to implode within seven years.  For the past two decades, Ms Brailey, President of BFCSA (Inc), has been a tireless campaigner, championing the cause of older and low income people around the Globe who have fallen victim to banking and finance scams.  She has found that people of all ages are being targeted by Bankers offering faulty lending products. BFCSA warn that anyone who has signed up for one of these financial products, is in grave danger of losing their home.

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BFCSA: 'Everyone at the top of the banks is hurting': Anna Bligh

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'Everyone at the top of the banks is hurting': Anna Bligh

Australian Financial Review May 17, 2019 4.18pm

Misa Han

 

The banking industry's top lobbyist, Anna Bligh, says changing culture and accepting a higher level of professionalism means accepting lower growth levels in the financial services industry.

The chief executive of the Australian Banking Association said the half-year results of the three major banks and the quarterly results of the Commonwealth Bank reflect the cost of "short-termism".

"Every one of those banks is reporting to the market significant amounts of money have been set aside as provisions for remediation," she told a panel at the Australian Securities and Investments Commission annual forum on Friday.

"If you say you're changing and it doesn't hurt, then you're not changing.

"And I think everybody at the top of the banks is hurting and I think they understand there's some more pain to come."

CBA's quarterly earnings update showed another $714 million has been set aside for customer remediation, bringing total refunds and related costs for failings in its banking and wealth division to more than $2 billion.

The bank said it had also foregone $415 million in revenue, after removing or reducing fees and introducing pre-emptive fee alerts that remind customers to take action to prevent them being charged on overdrawn accounts or credit cards.

Ms Bligh said the latest results show the cost of focusing solely on short-term profits.

"At least we can quantify the cost of getting this wrong. This is the cost of short-termism and it catches up and now you can quantify it," she said.

Shift from the short term

Rob Everett, the head of New Zealand's Financial Markets Authority, admitted that lifting professional standards necessarily means making fewer sales in the short term.

"Providing value for customers hasn't been anywhere near close enough to the top of the list," he said.

He said the "evils" of quarterly reporting and short-term shareholder metrics had distracted businesses from looking at long-term goals.

"I think in the short term … globally experience in the last 10 years suggests actually the bulk of financial services has not learnt the lesson," he said.

On the banking executive accountability regime (BEAR), which holds bank senior executives and directors accountable for specific obligations, Ms Bligh said it's "still very, very early days".

She said the industry feedback so far is that mapping the accountability of individuals is an "incredibly useful and powerful process in the organisation".

However, because the industry is yet to see the full impact of the regime it has also encouraged overly cautious behaviour, she said.

BEAR started for large banks in July last year, while for smaller banks it will not kick in until July this year.

"While a number of people thought they had clarity about what they were accountable for … when you actually start to map it there were lots of instances when there were three or four people were accountable for the same thing," she said.

"But it is very early days. Until people see how it's going to be monitored and enforced and what the consequences are when something in your area of accountability goes wrong … then there is a lot of risk averse behaviour at the moment. For very understandable reasons."

 

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