About

The Retail Banking Remuneration Review

Mr Stephen Sedgwick AO  conducted an Independent Review of product sales commissions and product based payments in retail banking. This related to bank staff and third parties who receive payments for selling bank products such as deposit accounts, mortgages and credit cards.

The aim of the Review was to identify whether commissions, bonuses or other incentives might motivate bank staff to focus on their financial interest rather than their customers’.

The banking industry will use the independent findings to develop and adopt a new remuneration framework. This represents a voluntary extension of the Future of Financial Advice reforms to ensure remuneration in all bank businesses is aligned with customer expectations.

This Review was commissioned by the Australian Bankers’ Association as part of a 6 point reform plan announced in April 2016, to address conduct and culture issues in banks and was completed on 19 April 2017 with the release of a holistic final Report.

About the Review

The banking industry recognises that customers and the wider community expect banks to make sure they have the right culture, the right practices, and the right behaviours.

The aim of the Review was to identify whether commissions, bonuses or other incentives in retail banking might motivate bank staff to focus on their financial interest rather than their customers’.

Following a consultation process, and with the help of legal and remuneration experts, the Reviewer  presented his findings, as part of the final Report, on how banks can ensure their remuneration and other arrangements align with good customer outcomes. It made 21 recommendations for change.

Steve Sedgwick

About the Reviewer

Mr Steve Sedgwick AO has had a long and distinguished career in the public sector, having served in a number of departments beginning in 1972. He was Secretary to the Commonwealth Departments of Finance, Employment and Education between 1992 and 2002. He became Australian Public Service Commissioner in December 2009-2014 after a period as Professor and Director of the Melbourne Institute of Applied Economic and Social Research at the University of Melbourne and, earlier, as an Executive Director on the Board of the Asian Development Bank.

Steve has served on a number of boards and advisory bodies, including the Male Champions for Change and the Jawun Corporation. He is currently Deputy Chair of the Board of the Sir Roland Wilson Foundation based at the Australian National University and is serving on international advisory panels to the public services of Canada and Singapore. He has been recognised by his peers and is a National Fellow of the Institute of Public Administration Australia. Steve was awarded the Centenary Medal in January 2001, and was made an Officer in the Order of Australia in June 2012.

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