Many of the systemic problems with the banks appear to be related to financial advice.
This is not really my area and am happy to be corrected, but much of the evidence to the RC I read relates to employees of the banks giving advice that was not in the best interests of the clients. In some cases, catastrophic financial advice that ruined their customers while the bank and its employees scooped up hefty fees and ongoing commissions.
If this is the case, then I would say we first need to look at the Corporations Amendment (Streamlining of Future Financial Advice) Bill 2014 which eventually passed as the Corporations Amendment (Financial Advice Measures) Act March 2016. This specifically increased the exemptions where banks were allowed to not act in the best interests of their client.
The catch-all "safe harbour" clause of working for the best interests of the client was taken out, banks didn't have to reveal hidden fees, the opt-in obligation for products with ongoing fees was removed and all general advice was exempted from needing to be in the clients' interests.
It was the best legislation money could buy. The banks had free rein to give advice that was in their best interests, and totally screw over customers at will.
