Westpac CEO explains commission cut decision

McGrath told TMMOnline a key driver of its move to end trail commission came about after the Commerce Commission’s investigation into retail banking and making sure “that we lined up consumer interests with our own."

"There was a bit of a discussion happening at the time about whether trail commission was fully aligned in terms of making sure that everybody was incentivised to make sure that individuals got the best deal for themselves.”

She says there were other factors behind the decision too, but would not elaborate. When asked what these were she says: “(I) haven't got the full list of other considerations that we took into account at the time.”

“A primary driver was about making sure that incentives were all lined up for freedom, freedom of movement. And haven't got the full list of other considerations that we took into account at the time.”