ANZ will implement a two audit fails and you’re out policy as part of its response to the Royal Commission into Banking, Superannuation and Financial Services.
The big banking group announced the initiative today, alongside the removal of all sales incentives and bonuses for financial planners and performance assessment based on customer satisfaction.
Announcing the moves, ANZ chief executive, Shayne Elliott described the changes to bank policy as being “industry-leading initiatives” which would mean the big banking group removing all sales incentives for financial planning bonuses.
He said the bank would also be speeding up customer remediation, quickly removing planners that provided inappropriate advice, and demanding new professional standards.
“Financial advice is an important part of the services we offer, but it’s also an area where we’ve failed some of our customers,” he said. “We know it has taken too long for changes to occur, so where we see solutions we will act. That’s why we are getting on with these initiatives now,” he said.
"It is important customers feel confident in the quality and trustworthiness of seeking advice so they can save for retirement and protect the things they care about in a complex system,” Elliott said.
Outlining the initiatives, Elliot said the bank would:
• Remove all sales incentives for bonuses and only assess performance on customer satisfaction, ANZ values, and risk and compliance standards
• Quickly identify and remove planners that provide inappropriate advice – two audit fails and their contract will be terminated
• Only employ new planners with a relevant under graduate degree and industry certification, and require existing planners to be enrolled in further necessary training by January 2019
• Commit to completing compensation on about 9000 current inappropriate advice cases by the end of the year
• Offer an advice review, at no expense, for any of financial planning customers who may have concerns about their current financial position