Westpac ‘thinking through’ future of advice business
Westpac is thinking through the future of its financial advice service, according to the bank’s chief executive, Brian Hartzer.
However, he said the bank would not be walking away from advice and abandoning its advice customers.
Answering questions before the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, Hartzer acknowledged that the move by banks into wealth management could not be counted as a success.
He said the banks who had made the move into wealth management more than a year ago had clearly underestimated the amount of change that would be needed to make it a success.
Hartzer had earlier argued that institutions such as banks were better placed than many other entities to provide the resources to institute the controls necessary to run an effective wealth management business.
Hartzer also agreed with counsel assisting the commission, Michael Hodge QC that there was potential for conflicts of interest where wealth management products were manufactured alongside the provision of advice.
This was one of the reasons why Westpac had exited BT Investment Management.
Recommended for you
With a large group of advisers expecting to exit before the 2026 education deadline, an industry expert shares how these practices can best prepare themselves for sale to compete in a “buyer’s market”.
Australia has marked a decade among the best countries for retirement, according to Natixis, but with high inflation threatening their retirement goals, a third say they would get professional advice to improve their chances.
When it comes to the risks of acting as a responsible manager at an AFSL, compliance firm Holley Nethercote has shared a range of red flags that could see them facing disciplinary action from the corporate regulator.
Wealth management platform provider Netwealth has announced a partnership with FinClear to streamline trading capabilities for advisers.
