Inquiry into the Financial Services Regulatory Framework in Relation to Financial Abuse (2024)

The Australian Human Rights Commission provided this submission to the Parliamentary Joint Committee on Corporations and Financial Services in response to its ‘inquiry into the financial services’ regulatory framework in relation to financial abuse in Australia.

The focus of the submission, made by the Age Discrimination Commissioner, is on the role of financial institutions in the context of older people at risk of or experiencing financial abuse, also referred to as ‘financial elder abuse’. 

Financial elder abuse, or exploitation, is the misuse or theft of an older person’s money or assets. 

In this submission, the Commission expresses the view that a human rights-based approach – that is, an approach that places service users at the centre and where human rights norms and principles are integrated into the planning, provision and monitoring of laws, regulations and services – is fundamental to addressing systemic problems and improving service provision in all sectors, including the financial services sector. 

This submission addresses the following key topics in relation to the financial services regulatory framework and financial abuse: 

• the prevalence and impact of financial abuse on older persons, 
• enduring power of attorney law reform, 
• the Banking Code of Practice and Industry Guidelines, 
• adult safeguarding laws and agencies, 
• legislative protection to report suspected abuse and 
• the digitisation of financial services and accessibility. 

Financial elder abuse can have serious impacts on older people’s physical and mental health, livelihoods and human rights. It has also been associated with higher levels of stress and depression and an increased risk of nursing home placement and hospitalisation.

Financial elder abuse can also look different for other groups such as older people with disability, older First Nations people and older people from culturally and linguistically diverse backgrounds. Particular attention should be given to understanding and recognising the unique experiences and challenges that specific population groups face, which may include language barriers, cultural and/or religious cross-generational expectations and ‘humbugging’ in Indigenous communities. 

Financial elder abuse is a complex issue that requires a range of interventions and solutions at multiple points, and it is essential that the financial services sector plays its part in addressing financial abuse against older Australians.