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Advice scandals hit the big banks

Financial planning scandals have had a negative impact on the big banks, with 71 per cent of Australians believing that the banks' boards are ineffective, according to survey results released today.

The poll, undertaken by UMR on behalf of Industry Super Australia (ISA), surveyed 1,000 people last month, with 65 per cent of respondents believing that the banks' for-profit super funds and their boards were also overly focused on making a profit from customers' retirement savings.

"This survey captures the extent of mistrust of the major banks, in part because of the ongoing financial advice scandals," ISA chief executive David Whiteley said.

"Over the last decade, the big banks have had to pay millions of dollars to customers in refunds, compensation or settlements and have been the subject of investigations and other enforcement action by the regulator and police."

Mr Whiteley said the community at large has little trust in the big banks, "particularly people over 30".