The fallout for shareholders from the Banking Royal Commission

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The initial findings of the Hayne Royal Commission have comprehensively demonstrated that many assumptions about Australia’s banking and financial services industry have, for a couple of decades, been fatally flawed. Now, SMSF investors need to assess how this might affect them.

The wash-up

We have seen clear evidence that self-regulation does not work; that competitive pressures are ineffectual when there is an effective oligopoly; that consumers are ill-served by “advisers” who have been turned into salesmen by chasing commissions; and that the whole system has been badly wounded by regulators not up to the task of protecting consumers.

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