A spokesperson for Mr Dastyari said the new Senate Economics References Committee inquiry would be a continuation of the recently-concluded inquiry into the performance of ASIC.
The terms of reference of the proposed inquiry, seen by InvestorDaily, focus on the implications of the Future of Financial Advice reforms.
The inquiry will have the power to compel executives from all four big banks to appear at public hearings, said the spokesperson.
According to the terms of reference, the inquiry will have particular reference to the current level of consumer protections as well as the role of, and oversight by, regulatory agencies when it comes to misleading advice.
The terms of reference will also cover:
- Whether existing mechanisms are appropriate in any compensation process relating to unethical or misleading financial advice and instances where these mechanisms may have failed;
- Mechanisms, including a centralised register, that would ensure financial planners found to have breached any law or professional standards in their employment are transparent, for both the sector and consumers; and
- How financial services providers and companies have responded to misconduct in the industry; and other regulatory or legislative reforms that would prevent misconduct.
The inquiry will report by the first sitting day of July 2015.
