24 Jan A Royal Commission Report by Shane Reynolds
A submission to the Royal Commission into misconduct in the banking, superannuation and financial services industry has taken aim at “intermediaries” and “non-bank lenders”.
In the first Royal Commission submission to be released to the public by a non-bank lender Shane Reynolds, bestselling financial literacy author said that “Predatory lending is on the rise as a result of a systemic failure of the lending industry”.
The submission also takes aim at the unregulated sector of non-bank finance and the insolvency profession, particularly receiver appointments and calls for greater protection for borrowers.
Mr. Reynolds went on to say “There remains a conflict between the receiver and lender while the insolvency industry is made up of almost 650 liquidators and receivers registered in Australia the tier one firms such as BDO, Korda Mentha, PPB and FTI Consulting employ about half the amount, one could see that a monopoly has been adopted. Of great concern is the continued selling of assets by receivers for below market value”.
The Commission will hold an initial public hearing in Melbourne at 10am on Monday 12 February 2018.
Some of the recommendations in Shane Reynolds report include:
The government introduce higher standards of accountability and transparency for insolvency practitioners regarding the costs they incur while conducting receiverships, namely:
Insolvency practitioners be required to disclose their estimate of costs of the receivership prior to being engaged; and
The Australian Restructuring Insolvency and turnaround Association ensure receivers appointed to agribusiness cases must be appropriately qualified in agribusiness and have a strong background and demonstrated experience in rural management.
On 23 January 2018 Shane Reynolds filed his submission with the Commissioner High Court Judge, The Honourable Kenneth Madison Hayne AC.
Shane Reynolds report addresses the conduct of financial services entities as defined by the terms of reference, the effectiveness of mechanisms for redress for consumers of financial services who suffer detriment as a result of misconduct by financial services entities, the adequacy of existing laws and policies of the commonwealth relating to the provision of banking and financial services and recommendations to minimise the likelihood of misconduct by financial services entities in future.
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In January 2018 Shane Reynolds joined the Economic Society of Australia, New South Wales as a Young Economist member and was recipient of ”Author of the week” on 27 January 2018 by the Gold Coast Writers Association.
Shane Reynolds is the author of the book, ‘Get a Second Opinion before You Sign’, the book attempts to “lift the curtain” on under-the-table practices occurring in an unregulated industry with no consumer protection. 100% of the proceeds of the book are donated to Aussie Helper’s charity to assist Australian Farmers.