The ABA said that as part of a raft of new consumer protection measures unveiled by the association, it wants to implement an industry register much like ASIC’s financial advisers register.
“[It] would extend existing identification of rogue advisers to any bank employees, including customer facing and non-customer facing roles,” an industry statement released by the ABA said.
“This will help prevent the recruitment of individuals who have breached the law or codes of conduct.”
Addressing media yesterday, ABA chief executive Steven Münchenberg said that privacy considerations would need to be considered since the proposal to set up a public register could affect careers.
“What we don’t want is a system that is open to abuse. We don’t want a system where people who haven’t done the wrong thing end up on the register,” he said.
“But equally we need to make sure there’s a system so that if people are breaking the law, or they are breaking a bank code of conduct that that information is available to future prospective employers who understand that before they take on those employees.”
Mr Munchenberg said there are currently 150,000 people employed in the Australian banking industry, so it is important to “manage the privacy law and take that into consideration”.
The consumer package unveiled by the ABA yesterday also included details of an independent review of products sales commissions to be led by Gilbert + Tobin Lawyers senior partner Gina Cass- Gottlieb.
The ABA also pledged to standardise the protection of whistleblowers across banks.
“This package aims to address consumer concerns about remuneration, the protection of whistleblowers, the handling of customer complaints and dealing with poor conduct,” Mr Münchenberg said.
What about greedy education floggers of overpriced courses they inflict on advisers after years of scaremongering the industry into think it’s a necessity.
Let’s name and shame these greedy gits.
Oh hang on, no need we all know the 3 letter institution involved.
[quote name=”JM”]Really?
Let’s have a register for politicians that break promises too..[/quote]
Great suggestion, but heres an alternative COMPLETED list of polies who NEVER broke a promise…
1.) –
🙂
nothing quite like a failure in leadership to highlight where the problems are.
the bank employees are exactly that employed by the bank to do their bidding. To imply that this is the failure of a few individuals – clearly demonstrates where the problem is- the hierarchy and management team that encourage- or inspire this type of behavior – most often championing people that break or exceed revenue targets – stuff the cost to the individual customer.To release this shows the ABA for what it is – so marvelously out of touch.
Ian
Great that this will happen to “rogue” advisers. But what about the “rogue” managers and executives who oversee/encourage this behaviour in order to meet sales targets and receive bonuses?
As always, I note the ABA has its own definition of “independence”. If they appoint and pay for the review, I’m not exactly sure how independent it is!!!
I also note the review is only looking at commissions – not other forms of remuneration. Again, I refer to sales targets and bonuses.
“Addressing the media yesterday, ABA chief executive Steven Mnchenberg said that privacy considerations would need to be considered since the proposal to set up a public register could affect careers.”
Riiiiight so it’s OK for ASIC to hang an independent financial advisor who unwillingly got caught up in a failed investment scheme where they would slap him with an EU, force him to reimburse affected customers, ban him for 5 years from the industry (which destroys any future business/employment prospects anyway) then publicly name and shame him but Munchenberg is now concerned about how the same rules would affect ABA employees!?!
I suppose the same rules dont apply to the ISN either? Nor do they apply to any employee or commissioner of ASIC?
No they dont, this is just some pathetic watered-down attempt to appease ASIC and get on their good side while us independent financial planners have to deal with the rest of the other rules imposed upon us that no one else WANTS to play by!
The financial services laws in Australia are no different to Nazi Germany independent advisers have no rights, the banks can do whatever they want and the consumer has all the rights even when theyre wrong. And to cap that all off, when we go to CIO mediation AND WIN we have to foot the bill and cant seek damages for that either way to go Australia, what a fair and democratic set of laws we have!
Really?
Let’s have a register for politicians that break promises too..