Josh Frydenberg rejects calls for royal commission into rogue financial advisers

Assistant treasurer Josh Frydenberg still sees no need for a royal commission into financial advisers despite the scandal that has rocked National Australia Bank.

Renewed calls for a royal commission came after the bank’s financial advice arm NAB Wealth confessed last month it had quietly paid out as much as $15m to 750 customers during the past five years because it “didn’t get it right the first time”.

NAB sacked 37 advisers and the Australian Securities and Investment Commission (ASIC) is further investigating the bank.

It follows a series of other scandals, including the nation’s biggest bank, the Commonwealth Bank.

A Senate inquiry last year urged a royal commission into the sector but this was dismissed by the government, a decision Frydenberg is standing by.

“That’s my view,” Frydenberg told ABC television.

He said the government is responding to a series of reports, including the financial system inquiry, that looks to boost the professional, educational and ethical standards of the sector.

It is also looking to increase the powers for ASIC, which is also introducing a financial advisers’ register at the end of the month which will enable people to find out details about the financial planners they are using.