Commissioner Hayne said"no one"had been subjected to any formal public process of investigation or punishment for this conduct.

He said that only"at the last minute"banks and other licensees formally acknowledge Australian Securities and Investments Commission had"concerns"about their collection of fees without providing any services.

ASIC launched a lawsuit against National Australia Bank over its charging fees for no service this month.

Commissioner Hayne has also questioned whether banks and other"manufacturers"of financial products should be banned from providing advice - a model known as"vertical integration."

This is the business model still used by Westpac and wealth managers AMP and IOOF.

"Should financial product manufacturers be permitted to provide financial advice?"the report says.

It also suggested the industry had far more work to do in stamping out"grandfathered"commissions,which were agreed to before the Gillard government's Future of Financial Advice laws.

The report noted that Westpac,Macquarie Group and ANZ Bank had stopped paying grandfathered commissions,and questioned how the industry could justify such payments.

Of the companies that were grilled over the fees-for-no-service advice scandal,AMP suffered the most dramatic fallout,with its chairman Catherine Brenner,former chief executive Craig Meller and several board members all leaving after explosive testimony in April.

Commissioner Hayne said AMP may have deliberately lied to the corporate watchdog in its reporting of the scandal the Australian Securities and Investments Commission. It may also have engaged in"misconduct"when it told ASIC that a report it commissioned was “external and independent.”