The Financial Services Royal Commission final report highlights the significant challenge for financial service organisations to ensure their products, services & conduct meet community standards & expectations.

Commissioner Hayne in Volume 2 of the report (Case Studies) provides his view on how the conduct, subject of the case study, fell below community standards & expectations.

In Volume 1 (findings) Hayne lists his six norms of conduct:

1. obey the law;

2. do not mislead or deceive;

3. act fairly;

4. provide services that are fit for purpose;

5. deliver services with reasonable care and skill; and

6. when acting for another, act in the best interests of that other.

Hayne then shows how these 6 norms are embodied within financial services law. It follows therefore that the bulk of the 76 report recommendations (including those relating to culture) will be introduced via changes to existing laws.

The challenge for insurers and other financial services institutions will be to ensure they are focused on achieving the 6 norms of conduct rather than mere compliance with black letter law.