The robustness of the advice remediation programs conducted by the major banks has been questioned by an academic who has suggested some of the work has been carried out by contractors unqualified to deal with complex problems.
Adjunct professor in finance, Shantha Yahanpath has foreshadowed problems in the future from remediation programs which he claimed had been outsourced to consultancy firms which, in turn, had “sourced ‘contractors’ from recruitment companies and armed these contractors with ‘hot-housed’ financial planning diplomas”.
“Having taught financial planning programs at tertiary level, I can safely say that a financial planning diploma ‘hot housed’ within weeks is of little value even to handle simple financial planning problems let alone complex remediation problems,” Yahanpath said.
“The question is how robust these remediation programs handled by the ‘hot housed’ contractors are?” he said. “Most of the contractors use these programs as a short-term stepping-stone opportunity and some leave due to burn-out. Haven't they learnt anything from the problems created in the first place by taking short-cuts and keeping the regulators in the dark?”
Yahanpath claimed what was occurring in some remediation program was at odds with good enterprise risk management.