The following are edited highlights of testimony before the Senate Economics Committee on 6 March 2015.
Mr Jeff Morris, the CBA Whistleblower stated:
“The NAB whistleblower obviously benefited from my experience and did not waste any time at all on ASIC; he just went straight to the media. The fact that the NAB and CBA disasters can occur at all is due to ineffective regulation. ASIC’s specific multiple failures in relation to NAB matter merely provides further on-the-ground evidence of their incapacity.
The big, vertically-integrated institutions have long found ASIC to be a pleasure to work with, and this sentiment seems to have been reciprocated by ASIC’s appreciation of the fact that the big players seldom bothered ASIC with their problems. Indeed, we recently learned that the relationship is so cosy that ASIC actually submitted one of their press releases on NAB to NAB for vetting and amendment.
Mr Morris continued:
In my opinion NAB financial planning scandal is a carbon copy of the CBA financial planning scandal. The only difference is that NAB succeeded in sitting on the volcano for longer. The flawed business model which puts product sales above the client’s best interests is all but identical. The corrupt and abusive management is identical. The weak and ineffectual compliance systems are identical. The fraud, forged signatures and appalling advice given to clients are identical.
Both NAB and CBA managers acted corruptly to pull the wool over ASIC’s eyes, to cover up what occurred and to isolate and lie to their trusting clients and defraud them of compensation. It would have taken only one man of integrity in a position of authority at NAB to have stopped this five years ago.
Mr Morris also noted:
Missing from this equation is the corporate regulator, ASIC, whose job it actually is to catch and punish these crooks. This is the biggest scandal of all.
A full transcript of the Hearing before the Senate Economics Reference Committee on 6 March 2015 follows:Economics References Committee_2015_03_06_3280
This tab updated on 21 March 2015