Inquiry refers scandal-hit Australian banks to watchdogs

SYDNEY, Feb 04 (AFP): A major inquiry into scandals at Australia's banking and financial services firms has referred more than 20 cases to regulators for possible prosecution, and called for substantial changes in the sector.

The wide-ranging Royal Commission was called in late 2017 as public outrage mounted over allegations of dodgy financial advice, life insurance and mortgage fraud involving lenders, including the "big four" Australian banks.

Following a year-long investigation, with more than 10,000 submissions and numerous and often-emotional hearings involving affected customers, the Royal Commission called for swathes of rules to be revisited, and for banks to be more heavily regulated or monitored to prevent future misconduct.

"Saying sorry and promising not to do it again has not prevented recurrence," said the inquiry's commissioner, former High Court judge Kenneth Hayne.

"The financial services industry is too important to the economy of the nation to allow what has happened in the past to continue or to happen again."

A key focus of the 76 recommendations was closing legal loopholes and increasing protections for consumers, including through the banning of particularly egregious sales practices in the pension and insurance markets.

The big banks were sharply criticised, with National Australia Bank's (NAB) chair Ken Henry and chief executive Andrew Thorburn singled out for being unwilling to acknowledge their organisation's mistakes.

But Hayne stopped short of publicly recommending criminal charges, preferring to leave punishment to regulators-which he said themselves had fallen down on the job and were in need of review.