Senior executives within Westpac’s wealth division, BT Financial Group have been made to pay a price for the failings identified during the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.
Westpac chief executive, Brian Hartzer told the Royal Commission today that he had been “disappointed” with the executives and measures had been put in place, including salary measures.
He said there had been remuneration consequences for those executives both last year and that “the consequences this year have been significant”.
In early testimony, Hartzer said Westpac had expected that grandfathered commissions would simply come to an end as advisers renewed their statements of advice.
Hartzer confirmed that the banking group had this year decided to switch off the grandfathered commissions where it contractually could.
However, he told counsel assisting the Commission, Michael Hodge QC, that the banking group had not acted sooner because of its expectation that grandfathered arrangements would expire over time.
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