Westpac to rollout new adviser incentives

By Craig Phillips

WestpacBanking Corporation’s ongoing strategic review, Project Sunrise, is set to significantly shake up the way tied planners of the group operate, according to a draft copy of the project obtained byMoney Management.

The report says, by June this year new planner roles will be created for tied advisers, along with selected employment offers being made, a new induction program being launched and customers being allocated to individual planners.

However Westpac plays down the report by stressing it is merely a “work in progress” with nothing yet finalised, with the group adding that the whole process has been very consultative.

“Early on in our review, we decided that we would be very inclusive and we took a consultative approach, and although it is still early days, we have shared our first-stage proposals with our planner force, and received extremely positive feedback,” a Westpac spokesperson says.

The leaked memo details a chronological breakdown of changes planners can expect from the project up to 2005.

Potential changes tied planners can expect this year if the recommendations of the project go ahead include BT Portfolio Wrap being re-priced, the introduction of a Private Bank Wrap and the enhancement of BT’s existing Wrap.

Back in NovemberMoney Managementreported that, according to one Westpac adviser, Sunrise had inadvertently fuelled a number of adviser departures from the group in anticipation of the projects’ recommendations and likely changes to adviser remuneration structures.

These claims were scotched at the time by BT, who said as no outcomes from Sunrise have been disclosed, any links to it and adviser departures were “simply incorrect”.

However a Westpac spokesperson says the group is developing a rewards structure and the report suggests this will involve planners receiving “a non-validatable base salary” with subsequent rewards for “sales and retention”.

“It is still too early to elaborate. However, we expect this to improve the effectiveness of our planner force, delivering a more compelling wealth proposition for clients and maximising the value of the new capabilities we acquired when we purchased BT,” the spokesperson says.