In the wake of the royal commission into financial services, the ANZ bank has announced it will remove sales incentives for financial planning bonuses.
The financial services royal commission has been investigating scandals including customers of major banks getting charged fees for advice they didn’t get.
The ANZ announcement comes days after its Big Four competitor National Australia Bank said it was looking to exit part of its wealth management arm by 2019.
In its statement to the market, ANZ said it would quickly identify and remove planners that provide inappropriate advice. Their contracts would be terminated on two audit fails.
It said it would also make a commitment to completing compensation on about 9000 current inappropriate advice cases by the end of the year
The bank will remove all sales incentives for bonuses and only assess performance on customer satisfaction, ANZ values, and risk and compliance standards.
It said it would 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
“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,” ANZ chief executive officer Shayne Elliott 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.”