Government backs away from banking tribunal

Written on the 6 December 2016

The Government is backing away from its commitment to establish a banking tribunal, insisting it was only talking about a "small 't' tribunal" when it floated the idea in October.

Now it will establish a Financial Industry Ombudsman to replace the two financial services ombudsmen that already exist.

In October Prime Minister Malcolm Turnbull said "what we are working towards is having one tribunal that deals with consumer complaints in a cost-effective and speedy way".

Financial Services Minister Kelly O'Dwyer told The World Today: "When the Prime Minister was talking about a 'tribunal' he was talking about a small 't' tribunal, which was a catchall for having a one-stop consumer complaints stop."Mr Turnbull's comments in October came amid appearances by the bosses of Australia's big four banks before a parliamentary committee looking into cultural issues in the scandal-plagued sector.

The committee recommended the Government "introduce legislation, if required, to establish a Banking and Financial Services Sector Tribunal by July 1, 2007".

It also recommended the Tribunal be paid for by the banks.

Unlike a Tribunal, ombudsmen services are not backed by legislation.

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Source:  ABC News