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The Royal Australian Hayne Bank Commission released its full report.
National Bank of Australia, ANZ, Commonwealth Bank, Westpac.
Photo: 123RF
He recommended a complete overhaul of the sales culture and conflicts of interest in the financial services sector.
In his final report, Commissioner Kenneth Hayne denounced a sales culture that resulted in poor results for clients and recommended a radical change in the terms of payment for mortgage brokers and financial planners, so that many of them leave the sector, as well as a major overhaul of insurance sales practices especially for funeral coverage.
"Providing customer service has been relegated to second place and sales have become very important," said the commissioner.
"Rewarding misconduct is a bad thing, but incentive, bonus, and commission systems across the financial services industry have measured sales and profits, but not compliance." of the law and appropriate standards. "
The commissioner also referred several institutions to the company regulator for possible criminal charges relating to the scandal "fees for excluded services", but refused to name names of people or companies likely to to be prosecuted.
It makes 76 recommendations that, if implemented, will disrupt the business models of many industries, including mortgage brokerage and financial planning.
In the government's initial response to the commission's final report, Treasurer Josh Frydenberg said that he was following through on the 76 recommendations, "and that a number of important areas are going further."
"My message to the financial sector is that the misconduct must stop and that consumer interests must now go first," he said.
"From today, the sector must change, and change forever."
With 76 recommendations in total, here is the breakdown of the areas where they were made:
- Bank – 17 recommendations
- Financial Advice – 10 Recommendations
- Retirement pension – 9 recommendations
- Insurance – 15 recommendations
- Culture, Governance and Compensation – 7 Recommendations
- Regulators – 14 recommendations
- Other important steps – 4 recommendations
-ABC
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