The Coonan Conundrum: PR role puts Crown chairwoman in a morass of conflicts

by | Oct 27, 2020 | Economy & Markets

Crown chair Helen Coonan is chair of PR firm GRACosway, whose clients have been involved in questionable financial transactions including money-laundering and stumping for shady sharemarket promoters and mortgage brokers fighting commission bans. Her PR role is in conflict with her position as chair of financial complaints ombudsman AFCA, and both make her position at the head of Crown unsustainable at a time when the embattled casinos operator is desperate to show a leadership beyond reproach to keep its licence. Elizabeth Minter reports.

It was a key recommendation of the Hayne royal commission into misconduct into the banking and financial sector – a ban on trailing fees, where banks provide mortgage brokers an ongoing fee for the life of the consumer’s loan.

The ban was to come into effect from this year but following intense lobbying from the well-connected mortgage broking lobby, the Coalition announced a backdown. Instead, the government will review trailing commissions in 2022.

Critics say the capitulation has left consumers in a worse state. This is because as The New Daily reports, the overwhelming evidence is that “loans arranged by brokers tend to be larger, take longer to pay down and cost more than loans arranged directly with banks or other providers”.

“With the bank paying the commission, the incentive is for the broker to direct their clients to the bank with the highest commission.

And because the commission is a percentage of the size of the loan, there is also an incentive to encourage clients to borrow as much as possible.”

A 2017 study of the home loan industry by investment bank UBS found up to a third of mortgages are “liar loans” – based on inaccurate information that may have been massaged to help the borrower get a bigger loan than they should have been eligible for. According to UBS, loans arranged through brokers had a higher rate of misrepresentation.

Corporate lobbying a billion dollar business

And who represents the well-connected mortgage broking industry the Mortgage and Finance Association of Australia?

Step forward one of the largest lobbying firms in the country, GRA Cosway, chaired by Helen Coonan, the very same chair of the Australian Financial Complaints Authority who put banks on notice regarding their “arrogant indifference to regulatory and compliance risk” and “poor culture“.

Moreover, GRA Cosway’s client list includes a number of financial companies, a number of which are also members of AFCA.

There is AHL Investments, better known as Aussie Home Loans, which also offers personal loans.

Then there is PayPal Australia.

Tax shysters PayPal investigated by AUSTRAC for money-laundering, counter-terror financing

The fintech group was the 10th most-complained about company to AFCA in the eight months to June 30, 2019, according to publicly released data, with 833 complaints and a 58.3 per cent referral resolution rate.

Then there is Plenti, formerly called Ratesetter, which provides personal loans; and the small business lender Moula Money Pty Ltd.

What an extraordinary number of conflicts of interest Coonan has to manage.

As noted in an earlier article, in her chair role at Crown, she is a director of a company that directly benefits from making sure clients continue to have easy access to credit but also chairs the very organisation that rules on whether financial institutions are behaving irresponsibly in handing out credit.

Poor culture, rich pickings: Crown chair Helen Coonan too quick to slam banks for poor culture

Other financial-related companies represented by GRA Cosway include the litigation funder Omni Bridgeway and Sportsbet, and once included the financiers behind the collapse of Dick Smith.

Dick Smith disaster turns legal circus amid bank contortions

While individual disputes obviously are not brought to the AFCA board, the role of chair is meant to be completely independent, especially when all the other directors come from industry and consumer backgrounds/experiences. Given the range of conflicts Coonan must manage in her role of chair of so many organisations with diametrically opposed interests, “complete independence” is not a description that could be applied to her as AFCA chair.

Coonan said thousands of consumers had felt “badly let down” by financial institutions as far back as the global financial crisis and that “black-letter law” arguments would not succeed if they delivered fundamentally unfair outcomes for consumers.

The public would probably feel “badly let down” by Coonan, and would also not be interested in “black-letter law” arguments about Chinese walls, for example.

With the Australian Financial Review having called for Coonan’s resignation of AFCA, time will tell if she hears the message and realises her time is up as chairwoman of so many boards.


Elizabeth Minter

Elizabeth Minter

A 30-year veteran of the mainstream media, Liz is the editor of Michael West Media and the editor of Pearls and Irritations. Liz began her career in journalism in 1990 and worked at The Age newspaper for two 10-year stints. She also worked at The Guardian newspaper in London for more than seven years. A former professional tennis player who represented Australia in the 1984 Los Angeles Olympics, Liz has a Bachelor of Arts and a Bachelor of Letters (Hons). Her Twitter handle is @LizMinter_


  1. Avatar

    Looking good, in this year’s Meredith Hellicar Medal, for board women who are just as bad as the blokes.

    • Avatar

      And more vicious!

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    In reading this the name ‘Sir Desmond Glazebrook’ springs to mind in the 1987 Yes Prime Minister episode A Conflict of Interest.

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    urg – welcome to the new normal – corruption as the Liberal Party’s way of doing business

    actually it’s not new – it’s always been that way – it’s just a slap-in-the-face contrast to City of Sydney Council’s Independent Lord Mayor Clover Moore who actually seems to focus on doing things to improve life for all citizens

    rather than simply stealing from underneath them like the NSW Liberal Party with WestConnex – the tollway to a traffic jam, and handouts to mates’ rorts aplenty …

    the Labor Party takes from the rich to give to the poor
    the Liberal Party takes from the poor to give to the rich, etc.

  4. Avatar

    “Her PR role is in conflict with her position as chair of financial
    complaints ombudsman AFCA, and both make her position at the head of
    Crown unsustainable at a time when the embattled casinos operator is
    desperate to show a leadership beyond reproach to keep its licence”

    Exactly Elizabeth, and displays all the morals of an alley cat! Which gives all alley cat’s a bad name!

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