There has yet to be "sufficient shame" applied to the banks and their chief executives to reduce the problems inherent in vertical integration, argues a former ASIC executive.
That was the view of former ASIC economist and founder of Erskinomics Consulting Alex Erskine at yesterday’s 15th Annual Wraps, Platforms & Masterfunds Conference in the Hunter Valley.
“After [the next] fiasco we should have the CEO of the bank put their enforceable undertaking between their teeth and crawl naked to deliver it to ASIC,” he said.
Speaking to a room of nearly 200 delegates, Mr Erskine added that vertical integrations prevents institutions from having meaningful conversations with their customers.
“I think it’s a constraint because there is so much to defend when the empire is so large,” he said.
“It's not clear that the industry is understanding the problems with vertical integration – nor is it making a clear case for change.”
Mr Erskine said that being vertically integrated stops the big institutions from making convincing proposals.
“If you were only running a planning or broking [business] and they were not related [it would be one thing] ... but when you have the whole lot, everyone’s focus is diffused into how to measure all this,” he said.
“Being a vertically integrated industry, its not clear what the major banks are actually getting at.”
The Finance Sector Union of Australia has urged government action on consumer credit insurance and bank cultural issues following ASIC’s r...
Consumer complaints relating to investment and advice rose by 69 per cent in the first six months of the Australian Financial Complaints Aut...
The corporate regulator has clamped down on financial services licensees who have failed to gain membership with the Australian Financial C...