The Finance Sector Union believes the Hayne commission final report fails to make the recommendations the sector desperately needs and will not “fix the rot”.
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.”
Adrian Flores is a deputy editor at Momentum Media, focusing mainly on banking, wealth management and financial services. He has also written for Public Accountant, Accountants Daily and The CEO Magazine.
You can contact him on [email protected].
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