Update on Review Progress

In September 2016, Stephen Sedgwick released an update on how the review is progressing.

In September 2016, Stephen Sedgwick released an update on how the review is progressing,and next steps following the close of submissions. A copy of the report is available for download here.

Independent review of product sales commissions and product based payments in retail banking

The Review is currently on track to report by end March 2017.

The reviewer has had informative discussions with a number of interested parties, including external observers of the banking sector and key regulators.

It is pleasing that a number of submissions have been received to date or have been foreshadowed. Submissions that authors have cleared for publication will be posted to the Review web site shortly.

A substantial information gathering exercise is also underway.

Each member bank has agreed to provide detailed information to the Review about their remuneration practices in respect of retail banking employees and their managers. This will be supported with information about how these practices intersect with each banks’ performance management, assurance, compliance, risk management and similar systems.

Similar information will also be provided in respect of each banks’ relationships with third party providers such as brokers or contractors.

This information is commercially sensitive and the responses of an individual bank will not be published. However, the Review will publish an overview of the banks’ practices in these areas to inform the debate.

Data gathering will occur progressively until end October.

Analysis of submissions, views expressed in consultations and information provided by banks will inform the preparation of a paper setting out the issues on which the Review will seek feedback from interested parties, including the public.

At this stage the issues paper is expected to be published on the Review site in December (or, if necessary, January).

Feedback about the issues raised will greatly assist the Review.
Subsequently, a draft Report will be published in the New Year containing preliminary findings and any indicative recommendations.

A final report will be prepared and published after a short period of consultation on the draft.

Stephen Sedgwick AO Reviewer

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