Royal Commissions – A Guide. Part 1 – Preparation

02 Oct Royal Commissions – A Guide. Part 1 – Preparation

It seems trite, but once a Royal Commission is announced, you should ask

Could this Royal Commission affect me and my business?

Although colloquially called the Banking Royal Commission, we saw it include a range of financial services providers.

Lesson: Prepare – Don’t Assume a Royal Commission Won’t Impact You

We saw in the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry that some businesses were well prepared and others were less prepared.

It was clear to everyone from day one that the big banks would be required to give written evidence to, and appear before, the Royal Commission.

I suspect that the big banks’ legal teams and executives were preparing from the date a Royal Commission was mooted in the press. That is – well before the Royal Commission was announced.

I suspect that some of the smaller financial institutions called before the Royal Commission were not expecting to be impacted by the Royal Commission. You can watch the recordings here and see if you agree.

So, once you think that the Royal Commission could impact your business, how do you prepare? Here are a few simple steps to help you.

Step 1 – Royal Commission as Business Opportunity

Let’s face it, we all make mistakes. The only businesses not making mistakes are those doing nothing. Even then, doing nothing is a mistake – how can your business grow doing nothing?

Royal Commissions are all about uncovering mistakes that businesses, churches and charities have tried to hide.

If you treat the Royal Commission as an opportunity to improve your business – and learn from your mistakes – this is what it is likely to do.

So get in first. Work out where you have made mistakes, own them and establish policies and procedures to correct not only those mistakes, but to identify mistakes as they happen in the future.

We can help you with these policies and procedures – see an example here.

Step 2 – Legals

Simply ring your lawyers and check they will be available to represent and assist you if you are called on by the Royal Commission.

It is better to check now and not need them than find out they are too busy with other cases when you need them. Remember that if your lawyer specialises in your industry, or other industries affected by another Royal Commission, they will get busy once the Royal Commission gets going.

Three things to keep in mind when talking to your lawyer:

• the first step is being asked to respond in writing to the Royal Commission (also called a ‘rubric’) – you will want legal help with this;
• if you appear before the Royal Commission, you will need your solicitor and a barrister before, during and after the hearing; and
• have your solicitor confirm they are available to help you with all these things in case you need it.

Step 3 – Know Your Stuff

I would be surprised if anyone in the public spotlight speaks without briefing notes.

A Royal Commission brings the public spotlight on your whole industry, whether or not your business is directly called.

Briefing notes help when addressing staff, the media, the Royal Commission or anyone else.

Your staff and clients will have questions. Briefing notes, talking to your staff and call centre scripts can be useful to help ensure that your staff and clients know what to expect.

A good briefing note is correct and succinct. It acts as an aide-memoire. It helps the speaker be clear about the facts and allows them deliver their message simply and clearly. Both listener and speaker benefit from good briefing notes.

Unravelling Red Tape has written hundreds of briefing notes for Ministers, MPs, Senators, CEOs, senior government officials and others. My briefing notes have helped improve the quality of legislation, including here.

Next time, we will talk about the hearing.

Elaine Abery worked in the Australian Federal Government for over a decade. Her roles included designing legislation and the Secretariat to the Board of Taxation. She spent a decade on the other side of the negotiating table, working with peak industry groups, KPMG and various charities. She has been published in international journals and books. Her work has received prestigious international awards.