In an email sent to members, FSU national secretary Julia Angrisano said the final report identifies many of the problems within the financial services sector, but fails to provide the solutions.
She said banking is in urgent need of reform, and the recommendations “will not fix the rot that infects Australian banking”.
Of the 76 recommendations in the report, Ms Angrisano none of them address action on executive pay and bonuses, nor does any of them aim to improve professionalisation and self-regulation of culture.
“Hayne says only that financial service companies would review at least once a year the design and features of their remuneration systems for frontline staff, and all financial companies should assess their own culture and governance. We know from past experience how ineffective self-regulation can be,” Ms Angrisano said.
The FSU said it will continue to keep working to “bring fairness to our industry”.
“The work FSU members have done in the royal commission, building our vision of what a fair finance sector can be, is now more vital than ever,” Ms Angrisano said.
“We must engage with politicians, regulators and others to improve the ways our sector operates.”
Last year, the Association of Independently Owned Financial Professionals urged advisers to join the FSU to gain greater influence of government policy.
AIOFP executive director Peter Johnston told ifa that the new political strategy will assist the commercial and political direction of Australia’s financial advice community.
“The past political representation has simply not worked,” Mr Johnston said.
“The current stage of the political cycle strongly suggests now is an opportune time to seek and institute change.”
Hello? Kenneth? Where are you???
Why is it that Kenneth Hayne is no where to be seen since making his recommendations?
Could it be that he’s sitting on a beach somewhere on the other side of the world at some 5-star resort with the money he was no-doubt paid by the 4 banks to make those ridiculous recommendations….never to be seen again??
How anyone can believe that his recommendations will stop banks doing what they did is laughable and that stopping mortgage brokers receiving commissions, either upfront of ongoing for the work they do is absurd and absolutely wrong.
Putting that aside though – I believe WE ALL have a vested interest in this industry and as such should ALL monitor and report poor behaviour. There is more than enough business out there FOR ALL OF US to earn an honest living without being greedy or unethical.
How about we ALL put our big boy (and girl FFS) pants on, grow up, stop being so damn petty and get on with business in a professional, ethical manner and stop seeking market domination?
We ALL need to understand that problems will always be there no matter what we do. Greed causes FAR MORE problems though as we can ALL now see.
It seems like the union super funds may have got more than they bargained for, with the RC curtailing their ability to spruik at workplaces and limiting the use of industrial awards to force people into union funds. Still no official response from Bowen. He must be awaiting instructions from union headquarters while they figure out what he needs to do to protect “their” money.
Indeed, the Haynes report does not make any detailed recommendstions nor will “it fix the rot”, but that is not Haynes’ brief. It is up to all the stakeholders in the Financial Services Sector to consider the tone of the Haynes report and the 76 recommendations and “fix the rot” themselves. Together everyone should be working together on sensible feasible solutions, like individual professional regulation of advisers via a central disciplinary body rather than via multiple third party licensees. Solutions are there. It just requires courageous CHANGE leadership to lead working parties to start the momentum to rebuild the damaged reputation of Financial Services with well-crafted solutions that will serve the interests of the public.
There needs to be four key things happen, which until they are addressed the problems will continue. There are obviously more, but I see these being the main ones.
1. No vertical integration – it hasn’t worked and can’t work
2. Commissions should be banned (yes from mortgage broking as well). Yes it will mean some people can’t afford advice, but if the system is simplified then they should still be able to cope and get ahead.
3. There should be common definitions within insurance so that a policy from one is the same as the other, with price being the only differing feature – this would make it infinitely easier for consumers.
4. Super funds should be limited to 6 portfolio’s – 100% conservative; 75% conservative/25% growth; 50% conservative/growth; 25% conservative/25% growth; 100% growth; members choice of whatever shares/bonds/deposits they want. This would remove the ridiculous situation of having Industry funds having “balances’ portfolios with 90% in shares and property.
can not believe I am writing this but I agree with a union official
Damn right it won’t fix the rot! It will do exactly the opposite. Some of these recommendations will drive thousands of small financial adviser and mortgage broker businesses under which will ultimately INCREASE the profits of the banks and insurance companies responsible for the corruption. These small business were not at fault but are now being penalised and customers in the future will not have access to financial and insurance advice unless they are wealth. The others will be driven directly to the very same organisations responsible.
The FSU is right. Take NAB for example. Only the figureheads of a poor culture have resigned. What about the State GMs and Business Unit GMs that have been the henchmen that have driven the “Sales above all else” culture? You know the ones that have put their own results, promotions and careers above customers and staff.
They were just doing their job. If you don’t perform, then “out the door”. Nothing like a bit of unionism to allow for laziness and mediocrity in the workplace. Nobody seems to care about the cronyism that exists among industry funds management and trustees who seem to think it’s ok to wine, dine and be entertained at their corporate boxes at the expense of super members. What about that culture!?
Spot on – why should anyone tolerate staff that are there to collect their pay and not perform – its no different in any other industry and some of these people hide behind ‘I was being forced to do the wrong thing’ Most bankers do a brilliant job and are consistently abused by ignorant clients that think bank staff are punching bags. I cant believe as I read some of these comments and people believe the unions who have only one thing in mind – all super to be paid in to an Industry Fund – you Planners are self destructing
As per the Royal Commission let’s get the ‘liars, cheats, thugs, perjurers and bullies’ out of super!!!!
GET UNIONS OUT OF SUPER NOW!
They never had a place in our financial system except for Labor’s and slimey Keating’s underhanded bargaining and dealing back in the 1980’s.
There are countless unheard witnesses from within their own system, past and present employees, who are willing to testify to the underhanded and corrupt practises they employ for personal and political gain and NOT FOR THE SOLE PURPOSE of members benefiting.
AGAIN, IT IS TIME: GET UNIONS OUT OF SUPER NOW!
I agree, however they have too much power.. Labor and Getup now run the Country!
It’s when our industry is decimated that Australians will wake up but they still might be too stupid to understand