APRA Unveils CBA Inquiry Cast
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Here’s some of the extra pressure on the Commonwealth Bank share price over the next 8 to 9 months at least.
There’s already the slow progress of the Austrac money laundering case through the Federal Court, with the bank not expected to file its defence until later in the year.
That will continue well into 2018 with more hearings and then the trial proper starting mid-year.
On Friday, APRA, the key bank regulator revealed the cast for its public (yes public) inquiry into the activities of the Commonwealth Bank.
It will be chaired by former APRA head, Dr John Laker, assisted by former Reserve Bank board member, Jillian Broadbent (also a former banker/economist at Bankers Trust Australia, and company director on boards such as Westfield, Coca Cola Amatil, Qantas). The third member of the inquiry is Graeme Samuel, the former head of the competition regulator, the ACCC.
APRA said in a statement that its inquiry - the first of its kind to be held in public - would examine risk management, compliance, remuneration and accountability at the bank. It would also consider whether CBA’s efforts to address shortcomings in those areas were sufficient.
The final report’s is due by April 30, 2018, just before the Austrac trial is due to get underway.
The terms of reference for the inquiry include consideration of whether CBA initiatives undertaken in response to address existing issues “will be sufficient to respond to any shortcomings identified and, if not, to recommend what other initiatives or remedial actions need to be undertaken.”
APRA added the inquiry panel would have its support and “may obtain other external expertise and advice as it sees fit.”
Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey.
At the AFR he was a finance writer, Finance Editor, News Editor and Chief of Staff. At the Nine Network he was supervising producer of Business Sunday for more than 16 years. He has also written for other online and analogue print publications here and overseas.