"The damage done by that conduct to individuals and to the overall health and reputation of the financial services industry has been large,"he wrote.
"Saying sorry and promising not to do it again has not prevented recurrence. The time has come to decide what is to be done in response to what has happened.
"The financial services industry is too important to the economy of the nation to allow what has happened in the past to continue or to happen again."
The following are some of the key recommendations made by Justice Hayne.
The banks:
- Require mortgage brokers to act in the best interests of the intending borrower,not the bank providing the loan. Breaching this law would result in a fine.
- Borrowers rather than lenders should pay the mortgage broker for their services.
- Lenders would be banned from paying trail commissions to mortgage brokers for new loans.
- Expand the Banking Executive Accountability Regime laws to track those responsible for any breach of lending laws.