Banking commissions needs to stop: ISA
Banks need to cease paying all commissions and incentives by 2020 as a way to restore confidence to the banking system, Industry Super Australia (ISA) believes.
ISA's chief executive, David Whiteley, urged a comprehensive ban on all incentives and commissions paid to all employees by all banks, including cashiers, business bankers, and financial advisers.
"In particular, banks should not be paying anyone a sales incentive to sell compulsory superannuation. The banks are simply not going to be able to re-build trust with the public and parliament through their own devices," he said.
"A decision by the banks to cease paying all incentives by 1 January, 2020, including all grandfathered commissions, is the circuit breaker needed to send a clear signal to the Australian community, parliament and regulators that the banks will stop cross-selling and up-selling superannuation and other products to consumers when it is not in their best interests."
Whiteley said the trust and confidence in compulsory super was compromised by the poor conduct of the banks.
"It is imperative that compulsory super was quarantined from the governance and conduct failures of the banks," he said.
Recommended for you
The RBA has made its latest interest rate decision at the the final monetary policy meeting of 2025.
State Street is actively seeking to launch ETFs in the Australian government, corporate and high yield bond space next year in order to capitalise on the phase-out of AT1 hybrids.
Greater consistency across the ASIC adviser exam has helped boost the number of first-time candidates this year with many opting to sit before undertaking a Professional Year.
Financial advice practice Eureka Whittaker Macnaught is in the process of acquiring three firms to boost its annual revenue to $25 million.
