APRA panel appointed for CBA probe

Trevor Chappell | 08 Sep 2017

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MELBOURNE - [AAP] Australia's financial sector regulator has appointed three panel members to inquire into the Commonwealth Bank's (ASX: CBA) governance, culture, and accountability.

The three members appointed by the Australian Prudential Regulation Authority (APRA) are former APRA chairman Dr John Laker, former competition watchdog chairman Prof Graeme Samuel, and company director and former Reserve Bank of Australia board member Jillian Broadbent.

"APRA is pleased to have secured the services of three highly experienced and credentialed panel members to conduct the prudential inquiry," APRA chairman Wayne Byres said in a statement on Friday.

The panel will submit a progress report to APRA by January 31, 2018 and a final report by April 30, 2018.

Mr Byres announced the inquiry in August, following a civil suit filed by the federal government's financial intelligence unit, AUSTRAC.

AUSTRAC alleges that CBA had breached money-laundering and terrorism-financing laws by failing to provide on-time reports.

The inquiry aims to identify any shortcomings in the governance, culture, and accountability frameworks and practices within the Commonwealth Bank, and make recommendations on how to address them.

The inquiry's terms of reference say that the panel should not make specific determinations regarding matters currently the subject of legal proceedings, other regulatory reviews, or investigations by regulators other than APRA, or customers' individual cases.

APRA will provide support to the inquiry panel and may obtain other external expertise and advice.

Jillian Broadbent is a former board member of the Reserve Bank of Australia, is on the board of Woolworths, is chair of Swiss Re Life and Health Australia, and chancellor of the University of Wollongong.

Dr John Laker is a former APRA chairman, chairman of The Banking and Finance Oath Ltd, a council member of the University of Technology Sydney, and a director of Cancer Council NSW.

He is also an external expert for the International Monetary Fund and has participated in reviews of banking systems and supervisory arrangements in the US, Israel, Indonesia, and Europe.

Prof Graeme Samuel is a former chairman of the Australian Competition and Consumer Commission, a professorial fellow in Monash University's Business School, chair of the Monash Business School Business advisory board, and a councillor of the Australian National University.

 

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