IT IS NOT JUST THE BANKS – 4 QUESTIONS In the media during the week John Hewson, past Liberal and opposition leader suggested that the problem with the banking system in Australia and overseas is the remuneration system – largely based on commissions and incentives. I agree with him. Recent issues with superannuation funds managed […]

IT IS NOT JUST THE BANKS – 4 QUESTIONS In the media during the week John Hewson, past Liberal and opposition leader suggested that the problem with the banking system in Australia and overseas is the remuneration system – largely based on commissions and incentives. I agree with him. Recent issues with superannuation funds managed by the banks were at least in part due to the commission driven nature of the business. The same might be said about insurances sold by the banks – also attracting commissions for the ‘advisors’. Addressing this issue the last Federal Government limited the capacity of financial planners to accept commissions and increased the requirements regarding disclosure. But the financial sector is by no means also in terms of this commission based approach to remuneration. They are not alone in having the real or apparent conflicts of interest that arise from commission based remuneration. We…