May 8, 2018
As the fallout from the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry continues, our latest poll references ANZ’s announcement this week that it will terminate the contracts of advisers within its bank advice network if they fail two compliance audits.
The adoption by ANZ of what is effectively a ‘Two Strikes and You’re Out’ policy initiative was part of a range of measures announced by the Bank, which it stated would help improve the quality of financial planning (see: ANZ Puts Advisers on Notice).
Given the revelations emerging from the Royal Commission, does such a self-regulatory policy initiative from ANZ seem fair and reasonable to you? Would it seem fair and reasonable to the consumer?
But that’s not our question. Instead of asking you to pass judgement on a policy that will apply to ANZ’s mostly salaried bank advice network, we want to know what you’d think if this policy became a condition under which you were required to operate with your current AFSL.
If the intent in implementing such a policy is to help re-build consumer trust in financial advice, then this would appear to be a sound motivation. But is it fair and reasonable? Might there be any unintended consequcnces associated with a ‘Two Strikes and You’re Out’ policy?
As always, it’s over to you to continue the conversation and we’ll report back to you next week…