ASIC James Shipton banking royal commission
ASIC chairman James Shipton (Image: AAP/Mick Tsikas)

Kenneth Hayne's vision for a reformed financial services industry is less about punishing the big banks -- apart from some nervous executives who might end up in the dock, the banks will be happy with yesterday's report -- and more about simplicity.

Hayne has uncovered an industry broken at its core, with complex and unsatisfactory regulation and inept, tame regulators. His vision is an industry with a better culture, driven by overhauled remuneration and an extended and more aggressive BEAR Act. An industry working to a simplified regulatory framework that is clearer and has few or no carve-outs and exemptions. One with no conflicts of interest to motivate participants to rip off their own customers, enforced by more aggressive regulators whose first instinct is to prosecute, not tap crooks on the wrist.