ANZ has dumped sales incentives for its financial planners

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  • ANZ is removing all sales incentives for bonuses and will only assess the performance of financial planners on customer satisfaction, ANZ values, and risk and compliance standards.
  • Quickly identify and remove planners that provide inappropriate advice. Two audit fails and their contract will be terminated.
  • Only employ new planners with a relevant undergraduate degree and industry certification, and require existing planners to be enrolled in further necessary training by January 2019.

The ANZ Bank today moved to reset the way it pays its financial planners, putting more emphasis on customer satisfaction rather than revenue collection.

Sales incentives for financial planning bonuses are being removed and those planners who don’t measure up will be quickly removed.

And the bank is accelerating its program to back back thousands of customers who were charged for financial advice they didn’t get. The financial services royal commission is investigating a series of scandals including the fee for no service issue where customers of major banks were charged for advice they didn’t get.

“Financial advice is an important part of the services we offer, but it’s also an area where we’ve failed some of our customers,” says CEO Shayne Elliott.

“We know it has taken too long.

“It is important customers feel confident in the quality and trustworthiness of seeking advice so they can save for retirement and protect the things they care about in a complex system.”

The initiatives:

  • Remove all sales incentives for bonuses and only assess performance on customer satisfaction, ANZ values, and risk and compliance standards.
  • Quickly identify and remove planners that provide inappropriate advice. Two audit fails and their contract will be terminated.
  • Only employ new planners with a relevant under graduate degree and industry certification, and require existing planners to be enrolled in further necessary training by January 2019.
  • Commit to completing compensation on about 9000 current inappropriate advice cases by the end of the year.
  • Offer an advice review, at no expense, for any of our financial planning customers who may have concerns about their current financial position.

Elliott last week said the royal commission into Financial Services in Australia would also continue to have an impact on the banking sector.

“ANZ will learn from this inquiry and continue to take real action to restore trust within the community. We’re committed to playing our part and will continue to engage with the Commission in an open, constructive and transparent manner,” he said.

ANZ expects external legal costs for the royal commission to be around $50 million.

The bank last week announced a 4% lift in cash profit to $3.32 billion for the half year to March. Statutory profit after tax for the six months was $3.32 billion, up 14%, and within analyst forecasts.

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