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Commonwealth Bank Of Australia Probe To Focus On Governance, Pay, Culture

The Australian Prudential Regulation Authority or APRA said that it has appointed three panel members to conduct prudential inquiry into the Commonwealth Bank of Australia (CBA.AX).

On 28 August, APRA announced it would establish a prudential inquiry following a number of issues which have raised concerns regarding the frameworks and practices in relation to the governance, culture and accountability within the CBA group, and have damaged the bank's reputation and public standing.

APRA has appointed Dr John Laker AO, Chairman of the Banking and Finance Oath, Professor Graeme Samuel AC, Professorial Fellow in the Monash Business School, and company director Jillian Broadbent AO to undertake the inquiry.

The APRA noted that the goal of the inquiry is to identify any shortcomings in the governance, culture and accountability frameworks and practices within CBA, and make recommendations as to how they are promptly and adequately addressed. It would include considering whether the group's organisational structure, governance, financial objectives, remuneration and accountability frameworks are conflicting with sound risk management and compliance outcomes. The full terms of reference for the prudential inquiry, along with biographies of the panel members, is attached to this announcement.

The inquiry panel will provide a final report to APRA by 30 April 2018, with a progress report due on 31 January 2018. APRA intends to make these reports public.

by RTT Staff Writer

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