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.
Recommended for you
The Compensation Scheme of Last Resort says it has received over 200 claims for compensation relating to personal financial advice since its inception and detailed the specific recurring issues being raised by claimants.
Two financial advisers have shared with Money Management why they opted to specialise in certain client niches when setting up their own business.
Insignia Financial has reached a major milestone in completing the separation of MLC Wealth from NAB, having acquired the firm back in 2021.
There could be changes ahead for how ASIC requires licensees to handle conflicts of interest as the corporate regulator announces it will be meeting key stakeholders next year to update guidance.
