Mr Stephen Sedgwick AO is conducting an independent review of product sales commissions and product based payments in retail banking. This relates to bank staff and third parties who receive payments for selling bank products like deposit accounts, mortgages and credit cards.
The aim of the review is to identify whether commissions, bonuses or other incentives might motivate bank staff to focus on their financial interest rather than their customers’.
The banking industry will use the independent findings to develop and adopt a new remuneration framework. This represents a voluntary extension of the Future of Financial Advice reforms to ensure remuneration in all bank businesses is aligned with customer expectations.
This review was commissioned by the Australian Bankers’ Association as part of a 6 point reform plan announced in April 2016, to address conduct and culture issues in banks.