Reform agenda has removed need for royal commission
The financial planning sector does not require a Royal Commission into advice due to the current reform agenda with bank owned advice networks fully able to recompense any customers who make complaints.
NAB Wealth Group Executive, Andrew Hagger, said that if a royal commission was called NAB would participate but believed the immediate past reforms around planning and superannuation and the current reforms around life insurance were sufficient.
Hagger made the comments in Sydney yesterday as part of speech to the American Chamber of Commerce and stated that banks still had a place within the financial advice sector despite concerns around the independence of advice.
"Advisers have a requirement to give best advice in the customer's interest and that does not always mean it will result in a NAB product being recommended," Hagger said.
"Our statistics show that about half of life insurance products recommended are not NAB products and about a third of products on the investments side."
"Depending on the particular needs of the client at the time it does come down to the quality and professionalism of the adviser having the conversation at the time."
Hagger pointed to the failure of some advice groups to pay determinations made against them at the Financial Ombudsman Service and compared that with the track record of banks in compensating clients.
"If look at where the system failed and individuals have gone to the ombudsman and there is a judgement against a bank, a bank will pay," Hagger said.
"We know there are number of people on the wrong side of advice with some players, not part of the banks, with judgements against them and these have not been paid because the advisers did not have insurance or had gone bankrupt."
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