Regulators’ report puts spotlight on intermediaries
The report into the 11 biggest banks, released yesterday, passed a damning verdict on banks’ sales incentives and policing of staff. It also highlighted a series of issues with intermediary relationships.
The report found a number of banks "highlighted conduct risks associated with their limited oversight of the customer interactions that occur through brokers and other intermediaries”.
While the FMA and RBNZ review does not single out the mortgage advice sector, it also placed the spotlight on the remuneration structures used by banks and third parties. The report raised concerns about whether intermediary pay “impacts customer outcomes”.
In a warning sign for the industry, regulators said “more work” was required to ensure intermediary incentives were “aligned with good outcomes”.
Click the button below to subscribe and will have free unlimited access for a limited time to full article and all other articles on the site.
You will also be able to comment on articles on Good Returns.
![[The Wrap] What the heck is happening at the FMA?](https://goodreturns.publit.io/file/c_fill,w_300,h_200/a6c3bc06-6401-44de-96e2-286c090e132d.jpg)
