Banks scrap sales incentives
In a statement today, The Financial Markets Authority and Reserve Bank said "all banks" have pledged to scrap sales incentives after the joint review into banking conduct and culture last year.
In the conduct and culture report, the FMA and Reserve Bank expressed concerns that sales incentives skewed outcomes for consumers and led to mis-selling.
The report concluded the approach to managing conduct risk was "weak throughout the banking industry" and that the 11 banks reviewed had "not sufficiently put customer outcomes at the heart of their business".
The regulators required banks to outline their plans to eradicate sales incentives no later than the year after September 2019. The FMA and Reserve Bank now say banks have committed to the task.
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