ABA Review Brings Changes to Product Payments
The Australian Bankers’ Association own review into remuneration in retail banking, the Sedgwick review, identified fundamental issues with commissions and product payments.
The review made broad proposals towards delivering better outcomes for customers, and recommended banks implement them urgently.
Workplace Culture Needs Ongoing Scrutiny
Sedgwick also recommended banks formally examine their workplace culture, and ensure they fix any bias towards sales over ethical behaviour and customer service.
CXI and STAR Rewards Retired
In line with these recommendations, NAB removed both CXI and STAR Rewards from leaders in October 2017. It recently announced it would also be removing these payments for all remaining staff starting from 1 October 2018.
NAB has advised FSU that the changes mean employees will be on the more generic Short Term Incentives (STI) program. Information provided to FSU by NAB indicates increases to STI percentages and in some cases increases to base pay for Home Lending specialists have been made.
FSU has put a number of questions to NAB to better understand the changes, and the impact they are likely to have on overall remuneration.
We Want Your Feedback
FSU is seeking your feedback in relation to these changes, and any improvements you’ve seen to workplace culture.
We want to understand if the changes being made are genuine efforts to deliver ethical banking services, and to deliver better outcomes for customers.
Send your feedback to firstname.lastname@example.org
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Authorised By: Julia Angrisano, National Secretary