This prompted Labour MP, Matt Thistlewaite, to ask “Are you living in the real world?”

Mr Thorburn further admitted that the bank had sacked 55 financial planners out of its stable of 4,400 advisers and paid out $25 million in compensation to customers. It has also found that 1,138 staff had breached its code of conduct and a further 200 people has been fired as a result.

Despite these astounding revelations, Mr Thorburn claimed that the bank had lifted its standards and he was satisfied that his Head of Wealth and Chief Customer Service Officer had led this business well and lifted the standards.

It is inconceivable that a major financial institution, a bank, an organisation that the public should be entitled to trust implicitly can have such a warped view of the standards required and fail to hold offenders accountable.

Financial Planning, like any profession, requires the highest standards of integrity, practicing standards and ethical conduct. It also requires appropriate standards of education and a strong process of accountability and disciplinary procedures for those who fail to comply.

All these things are in place in the AFS licensing standards and it is up the licensees to supervise the activities of those who are authorised to practice under that license and maintain standards. That requires a robust compliance regime and adequate resources to carry out effective training supervision and review. It is complex and it is costly – and therein lies the problem for the banks.

Independent, professional financial planning practices like Hewison Private Wealth take compliance seriously. It is baked into our DNA. It is what we do on a daily basis and it represents good business practice. We build compliance into our daily systems and talk about it on a daily basis in everything we do.

As I have said on many occasions over many years; you cannot institutionalise professional advice. It takes an independent financial planner and investment adviser to ensure your individual needs are looked after.

Hewison Private Wealth are award winning financial planners, investment advisers and self managed super fund (SMSF) specialists. If you’re interested in speaking to one of our advisers please contact us on 03 8548 4800, email [email protected] or visit www.hewison.com.au

EVENT INVITATION! We invite you join Hewison Private Wealth Advisers for a seminar featuring information on the changes to super rules – Tuesday 21 March – email [email protected] for details.

Please note: The information provided above is general information only and individuals should seek specialised advice from a qualified financial adviser. Please contact Hewison Private Wealth for more information.