Powered by MOMENTUM MEDIA
investor daily logo

Westpac rejects 'sales' tag

  •  
By Tim Stewart
  •  
2 minute read

Westpac has rejected the imposition of a 'sales' title for bank employees who provide general advice to consumers.

In a submission to the parliamentary joint committee inquiry into financial planner education standards, BT Financial Group acknowledged there "is a need to re-evaluate financial advice terminology contained in the Corporations Act".

"Given concerns that consumers may misinterpret the information being provided as something more than merely general advice, Westpac supports consideration of a clearer distinction being drawn via different terminology," said the submission.

The provision of general advice ranges from 'scripted client assistance', one-to-one conversations, newsletters and internet material to client education seminars, said the bank.

==
==

"As a result, Westpac does not support the introduction of terminology based around 'sales'," the submission said.

Much of the information provided via general advice is factual information about a product or service and is contained in regulated disclosure material, said Westpac.

Such information could include the benefits of salary sacrifice arrangements, or explaining the benefits of compound interests.

"Westpac therefore does not believe the characterisation of this information as 'sales' is appropriate," the bank said.

"Instead, Westpac suggests that general advice be renamed 'general financial information'."

Such a move would recognise that the information is not personal advice, but at the same time would acknowledge it may go beyond merely factual information, said the submission.

"Consistent with our views on supporting consumers to build confidence and trust in financial advisers, removing the label ‘advice’ would also facilitate a clearer separation from personal advice, and enable the term 'financial advice' and 'financial adviser' to be clearly linked to the provision of personal advice and the services of a professional who is legally obligated to act in their client’s best interests," Westpac said.

Westpac rejects 'sales' tag

Westpac has rejected the imposition of a 'sales' title for bank employees who provide general advice to consumers.

investordaily image
investordaily image
ID logo

Comments powered by CComment