A move by Greens senators to set up a royal commission on the financial services industry has been defeated after Labor members voted with the Government.

The defeat has been criticised by Greens senator Peter Whish-Wilson, who says it’s time for a wide-ranging examination of “white-collar crime and misconduct in the financial services sector”.

“Nearly 12 months ago the Senate inquiry of the economics committee made a recommendation for a royal commission into the Commonwealth Bank,” he told the Federal Senate.

“Following that, in the past 12 months, we have seen allegations and revelations of misconduct at Macquarie Bank, ANZ, NAB and, recently, at IOOF.

“How many more scandals are lurking under the surface?”

Senator Whish-Wilson says while various Senate committees have done good work investigating the scandals, a royal commission is the only way to “get to the bottom of this and sort it out once and for all, for the good of the financial services sector”.

Manager of Government Business in the Senate Mitch Fifield told the house the Coalition’s position on a royal commission has not changed.

“The financial services industry has never been under closer scrutiny. During the past 12 months alone we have had five inquiries into the sector.”

Senator Fifield says the Government is working to raise professional standards among financial advisers in response to a bipartisan committee inquiry.

“The Government has delivered on its commitment to introduce a public register of all financial advisers. At the same time, substantial changes to the regulatory regime for financial advisers through the Future of Financial Advice are due to come into full force on July 1.

“Also, the financial advice sector is a key focus for the Australian Securities and Investments Commission.”