In another major embarrassment which exposes the Prime Minister and Treasurer making it up as they go on the Banking Royal Commission, the corporate regulator has admitted that it was not consulted prior to the announcement.

This follows revelations yesterday that SloMo had failed to consult the victims of banking scandals.

The ASIC Deputy Chair, Peter Kell, was giving evidence before the Parliamentary Joint Committee into Corporations and Financial Services today where he admitted ASIC were not consulted prior to the Prime Ministers and Treasurers announcement.

MATT KEOGH: Was ASIC consulted on the governments decision to launch a Royal Commission into banks?

PETER KELL: We were not consulted prior to the announcement.

KEOGH: And did you have any input into the terms of reference that have been circulated at the time of the announcement?

KELL: As Im sure youll understand the Royal Commission and the terms of reference are ones for Government. We havent had input into the terms of reference. [LINK TO FOOTAGE]

Malcolm Turnbull and Scott Morrison have acknowledged that theyre only calling a Royal Commission into the banks because of Labor.

Well they should complete the capitulation and consult with Federal Labor on the terms of reference Labor has after all been calling for this Royal Commission for the last 18 months.

The best way to end the political uncertainty is to have a Royal Commission terms of reference and appointments that enjoy bipartisan support.

The Government should not only be consulting with all relevant economic regulators but with banking victims too.