Finance industry culture change needed
(27 April 2015 – Australia) The head of National Australia Bank (NAB)’s wealth business, Andrew Hagger said financial advisers need to change their culture.
At an American Chamber of Commerce lunch he said NAB was working tirelessly to maintain the trust of its customers.
"What is clear is that we, the wealth industry, need to step up."
But he doesn’t believe there is any need for a royal commission.
"There's been a lot of reform in the sector," Hagger said.
In February NAB divulged it had paid out millions of dollars over five years to 750 customers who had received bad advice from NAB Wealth.
NAB now tells the Australian Securities and Investments Commission about advisers who have left the company, and why.
It also seeks to resolve customer complaints within 45 days and has promised to add independence into the whistleblower and complaints process.
Hagger said cultural change would be made through higher education levels overseen by an independent body, a greater emphasis on complaint associations, continuing professional development and with new entry requirements for advisers.
"NAB strongly believes that qualify advice and advisers are the heart of Australia's wealth system - but we need to get this right," he said.
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