Whiteley baits banks on insurance commissions
Industry Super Australia (ISA) has sought to tie increased scrutiny of the banks to the issue of continuing commission-based remuneration as a result of grandfathering.
ISA chief executive, David Whiteley claimed the banks had "acknowledged the widespread damage of numerous financial scandals in recent years, caused by commissions and other incentives which have cost consumers millions of dollars in lost savings"
"If the banks are finally prepared to do the right thing, they should act immediately to abandon grandfathered commissions and other revenue-based incentives on all their products and services, including for executives," he said.
Whiteley also called for legislative amendments to end the grandfathering of commissions with respect to life insurance commissions.
"Over a long period, the banks have lobbied for carve-outs from obligations to provide consumers with clear and transparent information about investment options, including about the extent of the ongoing underperformance of the sector. This aversion to accountability must stop," he said.
"The test now for the banks is to demonstrate with action, not words, that they are willing to do the right thing by giving up commissions, going further than FoFA requirements and discontinuing their numerous attempts to water down consumer protection legislation," Whiteley said.
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