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.
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