Banking News

Finance Sector Union argues for single code for bankers

Finance Sector Union argues for single code for bankers

(18 June 2018 – Australia) The Finance Sector Union has argued the Hayne commission should create a new “Financial Services Code” to simplify and consolidate all the laws governing banks and their staff.

The unions submission took issue with Bank of Queensland’s franchise model as well as remuneration structures at Westpac’s business bank, say8ing they are still overwhelmingly driven by sales and revenue targets.

With Commissioner Kenneth Hayne exploring recommendations to have a lasting impact on the sector, the FSU suggests a new banking code should replace the “tapestry of obligations” currently found in various laws and says this should be enforced by regulators rather than the Australian Banking Association, the industry lobby group.

The union is also frustrated about being excluded from helping to draft the revised industry code, The Code of Banking Practice, which is currently with ASIC for approval.

The FSU has criticised the widely used “net promoter score” (NPS) metric, which it says creates an incentive “to ensure the customer gets what they want, rather than what is in their best interests, what is compliant or what is in line with community standards”.

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