No systemic issues spotted in bank review
The bank-sponsored Sedgewick Retail Remuneration Review has not identified systemic issues to justify the removal of product based payments made to bank staff and third parties.
That was the argument made by the Australian Bankers' Association (ABA) in response to the release of the issues paper from the independent review into commissions and payments made to bank staff and third parties.
ABA executive director, retail policy, Diane Tate, said banks had changed remuneration structures in recent years to emphasise more on good behaviour rather than sales targets to reflect regulations and community expectations.
"However there is more to do. It is important that banks get the balance right between rewarding employees and getting the best results for customers," Tate said.
The ABA said it would provide another submission to Sedgwick to assist in the completion of the report, with Tate saying it was a "complex area with mixed views".
She encouraged interested parties to voice their views.
In addition to reviewing payments when selling retail banking products like deposit accounts and mortgages, the Sedgwick Review would also cover principles on how banks paid and incentivised all employees and executives.
Recommended for you
Adviser Ratings has explored whether there is a financial benefit to advice firms seeking to have a specialised client base in terms of client assets and fees charged.
Research by two recruiters has revealed whether salary or team culture is more important to financial services professionals when considering a new position.
Two financial advice businesses are to merge in a bid to create a multidisciplinary professional services firm as part of AZ NGA’s “super firm” strategy.
While the Financial Services and Credit Panel can take action on individual advisers’ misconduct, a compliance professional unpacks why the panel does not always subject licensees to further action.