Adviser wanted to boost his bonus

27/04/2020 Posted by admin

National head of BT Finance Michael Wright is to continue giving evidence to the banking inquiry.A former Westpac financial planner was trying to boost his bonus when he gave poor advice to numerous clients, a royal commission has heard.

Westpac has had to refund $2.1 million to 91 customers of the adviser.

Westpac executive and BT Finance national head Michael Wright said one of the reasons the adviser gave inappropriate advice was to increase or maintain his share of revenue or his monthly bonuses.

Mr Wright said there were cases where ongoing advice was not provided, which was unacceptable.

“It was systematic. It looked, to me, deliberate. It’s unmoral [sic],” Mr Wright told the banking royal commission on Friday.

“I was very disappointed with that.

“And I think the only justification I could see was to sort of maintain your level of remuneration.”

Mr Wright said there were too many cases where he could not see any real value when customers were advised to replace products, thereby increasing the revenue booked by the adviser.

He said the adviser also recommended hybrid securities, for which he earned significant fees, when the product was not appropriate for the customer.

The adviser was employed by Westpac, initially through St George financial planning, from 2007 until 2015 when he resigned after the bank raised serious misconduct issues.

Australian Associated Press

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