Prime Minister Malcolm Turnbull has announced a royal commission into the alleged misconduct of Australia’s banks and other financial services entities, including insurers.

“The Government has decided to establish this royal commission to further ensure our financial system is working efficiently and effectively,” Mr Turnbull said this morning.

“Instead of the inquisition into capitalism that some have called for, the royal commission will take a conventional, focused approach.”

The inquiry will consider “the conduct of banks, insurers, financial services providers and superannuation funds (not including self-managed superannuation funds)”.

It will also consider how well equipped regulators are to identify and address misconduct. 

Draft terms of reference have been published, which specify that the term “financial services entity” includes both general and life insurers.

A spokesman for the Insurance Council of Australia told insuranceNEWS.com.au that “general insurers are ready to contribute to the royal commission”.

More details in our regular bulletin on Monday.