The Ombudsman is to examine "selected cases identified by the Parliamentary Joint Committee and, pursuant to the attached terms of reference, provide advice to Government to help determine if further regulatory action is required."
According to Minister McCormack, the report "raised serious concerns about how banks treated some of their small business lending customers and made a number of recommendations to address the deficiencies they identified”.
In the media release, Minister for Revenue and Financial Services Kelly O’Dwyer said, "the Government has a substantial financial system agenda to improve consumer outcomes, however the Ombudsman will be able to identify through a forensic analysis if further reforms are needed".
According to Minister O'Dwyer, reforms may include, "extending the unfair contract terms protections to small businesses, and improving the regulation of insolvency practitioners” .
The final report produced by the inquiry is due to be reported to the Government in 12 weeks.
CLICK HERE to read the full Media Release.