Yesterday, Westpac-owned BT Financial Group said it has been working to improve the efficiency of their wealth business to drive greater revenue growth, better products and experiences for customers.
BT chief executive Brad Cooper said part of the changes to the wealth business include “a new flexible advice model that offers everything from general and single-topic advice to full personal advice delivered when and where the customer wants”.
The comments come despite ASIC announcing late last year it had commenced proceedings against Westpac subsidiaries for allegedly providing improper personal financial product advice to customers.
BT later said it would “vigorously” fight the regulator in the Federal Court, declaring that it was general advice that the customers received and that the regulator has the wrong interpretation of what constitutes general and personal advice.
Among other changes to the wealth business, BT said it will be reducing its number of investment products from more than 50 down to three and will also move from four trustees to just one trustee. Instead of 12 superannuation funds there will now be one, BT said.
BT is also looking at providing a functionality for advisers to complete SOAs digitally and in a more automated way.
Mr Cooper also pointed to a focus on BT’s life insurance business.
“Life is an integral part of our product set … we have a disciplined approach to how our products are distributed, with most sold through an adviser, as we believe that life insurance is a complex product that needs either personal or general advice to support it,” he said.
Mr Cooper said having a strong wealth and insurance operation is imperative to delivering customer’s financial needs throughout their life.
“BT has invested to transform its operations to help more Australians plan for their best financial futures,” he said.
Earlier this month, Westpac chief executive Brian Hartzer said the outcome of the ASIC federal case will determine the future of advice.
Seriously BT have no shame. Everyone knows that despite them spending so much money on Panorama, they still provide conflicted and poor advice. Their private banks are the worst for flogging products, especially hybrids that the end investor just doesn’t understand. How general advice in that circumstance passes the pub test is any ones guess
When and where as long as they do it via video conference or a phone call as they believe more efficient & cheaper for BT to deliver advice in a call centre style environment. Disaster so far as very poorly excecuted and customers not interested in advice via this medium. No commitment to face to face advice or what the customer actually wants. Entire advice business currently in crisis management as revenue has subsequently collapsed.
Wow. BT have discovered an amazing new super fund. According to the IFA article, they appear to be able to cut their previous 12 approved funds to just 1 and still comply with the ‘best interests duty’ owed to their clients. It is a scientific breakthrough. Standby for BT Wealth curing cancer next week. Oh! I wonder which fund manager issues this miracle super fund?
Including Industry Super Funds.
General advice = product flog. Must be stopped.