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Commission to Look at Settled Cases

Thursday 1 March 2018

Financial Review

The AFR reports that Commissioner Kenneth Hayne will be examining settled legal cases of bank mortgage fraud in a process set to start next month.

The AFR reported that “The Royal Commission said on Monday it would be probing misconduct across all of the big four banks. These include fraudulent home loan applications at National Australia Bank and Aussie Home Loans (owned by Commonwealth Bank of Australia); car financing deals by Westpac and ANZ; unsuitable credit card limit increases at Westpac; credit card fees at Citi; add-on insurance products sold by CBA; and unsuitable overdrafts and administration problems at both ANZ and CBA.”

Banks have already given a considerable amount of information but the hearings Hayne will be examining include settled cases. For banks, this may mean they will be required to give more information.

The next round of hearings may also require further information to be supplied by the CEOs, as well as the Australian Prudential Regulation Authority’s Chair, Wayne Byres, and the new Australian Securities and Investments Commissioner, James Shipton.

“When examining previously-settled cases, the Commission will not seek to re-establish facts but may take the settlement or resolution by an ombudsman as prima facie evidence of wrongdoing.”