Bendigo Bank scraps planner commissions
Commission-based remuneration for planners has been scrapped under the restructuring and renaming of Bendigo Bank’s financial planning arm, Bendigo Investment Services (BIS).
The 52 planners and 11 associate planners in the renamed Bendigo Financial Planning will now be paid a salary (and be eligible for participation in the same staff bonus scheme available for all other bank staff).
Chief general manager solutions Marnie Baker said in a media release “removing sales-based incentives for planners has dealt with the biggest complaint the industry has faced — that people haven’t been certain the planning advice they receive is unbiased”.
“Our customers will now know that’s the case [at Bendigo], because their planner does not stand to benefit from the recommendation he or she makes to them.”
Claiming “customer choice and fee transparency” as the focus of the restructure, Baker said customers “will also be in control of their fees and the level of advice and service they require from us”.
“They can choose up-front advice only, or advice plus ongoing service, and they can elect to pay either through direct fees or through a commission paid to the bank by a product provider.
“Either way, customers know exactly how much they pay and their fees will be capped at pre-agreed levels,” she said.
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