
It may not have been Goebbels who uttered the infamous phrase “When I hear the word culture, I reach for my gun”, but the phrase springs to mind in considering the (very rapid) appointment of former Commonwealth Bank head, Future Fund chairman and financial services inquiry head David Murray to the recently vacated AMP chair. While Murray’s appointment to the Brenner Pass has been welcomed, it’s worth reflecting on what no journalist over the weekend except Fairfax’s Elizabeth Knight noted about Murray’s view of regulating culture.
ASIC is pursuing this notion that you can have liability for a culture breach. It is absolutely impossible to legislate for that. In fact you could argue that it’s anti-competitive, because you can’t have the same culture for everyone by definition — a great culture is competitive advantage. It’s anti-competitive. It’s inefficient. And to be perfectly candid again, there have been people in the world who’ve tried to enforce culture. Adolf Hitler comes to mind.
This was Murray’s view just over two years ago. As the royal commission has confirmed for us recently, any comparison of ASIC with an enthusiastic boy scout troop, let alone the Nazis, is the stuff of fantasy. But it reflects how profoundly out-of-touch Murray can be, because it’s apparent that the financial services sector’s problems are profoundly cultural.
Before the government was forced to allow a royal commission, the Australian Prudential Regulation Authority (APRA) and the Reserve Bank as well as ASIC repeatedly outlined their concerns about bank culture. Last week’s APRA review of the Commonwealth Bank was all about the bank’s culture, the failings within it and how the board failed to address them. AMP has already admitted it needs to overhaul its culture. But Murray appears to think culture should be completely outside the purview of regulation — that is, entirely self-regulatory. Because Nazis, or something.
Murray, of course, is well know for having controversial opinions. He thinks the Rudd government should have done exactly nothing in response to the financial crisis except guarantee bank deposits. He is a notorious climate denialist.
But it’s in relation to financial regulation that his views are particularly problematic. A year ago, Murray opined that a royal commission was “not only unnecessary, it sets up higher systemic risk because the outside world doesn’t see the need for one”.
Murray thought the banks were too heavily regulated. “It’s a real problem when you’ve got ASIC bashing the banks on a weekly basis … there’s the cost of anti-money laundering compliance and other regulation, and they’re now funding ASIC as well as APRA. It really is too much.”
Murray’s comments on money-laundering came before the exposure of the CBA’s problems. Perhaps he has changed his view on money-laundering regulation. And perhaps, given the royal commission has gifted him a major chairmanship, he’s changed his mind on that too. Or perhaps he’s still seeing swastikas wherever he looks.


16 thoughts on “New AMP chair’s views on regulation living proof of Godwin’s Law”
Desmond Graham
May 7, 2018 at 11:08 pmhe problem is not ‘The culture ‘ it is the performance assessments – the KPI [key performance indicator] that sets what you call the culture -it is performance assessments. the reward system is predicated on certain criteria – which is the culture – how to reach these markers is the aim for all employees. That is why AMP s culture exposed in the Royal Commission is the same in its shopping centre arm with the retail branch employing the same tactics in their leases – 25% rental increases over a 5 year leas, monthly trading figures supplied to the financial landlords so further charges are levied for advertising which is negligible or non existent- same scams as being exposed in the Royal Commission so what is being exposed is actually the normal business culture in all financial segments even government owned [e.g. Queensland investment corporation, etc] So the only way to change any business culture is to alter the KPIs – not PR exercises changing Board members, gender equalisation programs on Boards didn’t do too well did it?
Metal Guru
May 7, 2018 at 11:23 pmThis from a guy who departed after 13 years as CBA CEO with a payout of $30 million. A Climate change sceptic he would have no trouble approving a loan to Adani and now he wants to inflict his loathsome neo-liberal musings on AMP after his making the CBA a greedy, lying integrated financial services company raping its clients’ accounts.
This must be a gift for Labor but watch them stuff it up. After it was they and their prolix Finance minister Kim Beasley that privatised the damn thing which set it on the path of making it the monster it has become. Murray was on TV the other night wanting us to cry tears of blood because he has an anorexic daughter. As CEO of the Butterfly Foundation he can damn well put some of that ill-gotten vault full of loot he took from his time at CBA and fund the bloody foundation himself rather than whingeing for tax payer funding of a medical treatment that affects him and his family personally. As a CEO of a large company AMP he and the company are liable for tax cuts again!! I think not only should former CEOs stop lecturing us and be censured for doing so, they should not serve on other company’s organisation or board structures or other NFP organisations as well. It just provides them with cover for their real money making and odious political/ideological ventures as well.
Ruv Draba
May 8, 2018 at 12:43 pmAnd Glenn and BK invited Murray to comment but he didn’t meet deadline? Or a sourced comment on the subject’s possibly-shifting views is less important than journalistic guesses as to what it might be if they’d only asked him?
Wayne Cusick
May 8, 2018 at 2:37 pmIt rather shows the incestuous relationship between government and big business that the guy who headed the financial services review gets a top job at one of the companies he was reviewing (having previously had the top job at another).
Is there any mechanism whereby the government, or its regulators, can block his appointment? Certainly the current government won’t want to, but could the regulators?
Anthony Hewett
May 11, 2018 at 6:22 amRead no further than “Administrator”, a few comments down, who seems to know exactly the nature of Australian banking practices, and when and how they got that way. Of course that was 2008, when the financial world nearly took itself – and the rest of us – over a cliff by behaving like alcoholics with keys to the liquor cabinet and access to a casino without any oversight. That was the face of unregulated capitalism – unacceptable license. Australia survived the 2008 crisis due to some sensible precautions, and steadiness in the event. Why its banks have since been allowed ten years of bilking their customers defies logic, as does dignifying it with the term ‘culture’. Mr Murray’s attempts to confuse matters with a nonsensical effort to take this casualness literally leads to the wrong rabbit-hole. Oligarchies through the ages have thus disguised their purpose: they need regulating, constant oversight and – for malefactors – exemplary punishment. If they can collude in crime, they can learn to be civilised citizens, rather than taking their lessons from the barracuda.