In conducting its prudential supervision of APRA‑regulated institutions and in revising its prudential standards and guidance, APRA should: build a supervisory program focused on building culture that will mitigate the risk of misconduct; use a risk‑based approach to its reviews; Read More …
Tag: risk
5.3 — Revised prudential standards and guidance
In revising its prudential standards and guidance about the design and implementation of remuneration systems, APRA should: require APRA‑regulated institutions to design their remuneration systems to encourage sound management of non‑financial risks, and to reduce the risk of misconduct; require Read More …
5.2 — Supervision of remuneration — aims
In conducting prudential supervision of the design and implementation of remuneration systems, and revising its prudential standards and guidance about remuneration, APRA should have, as one of its aims, the sound management by APRA‑regulated institutions of not only financial risk Read More …
2.5 — Life risk insurance commissions
When ASIC conducts its review of conflicted remuneration relating to life risk insurance products and the operation of the ASIC Corporations (Life Insurance Commissions) Instrument 2017/510, ASIC should consider further reducing the cap on commissions in respect of life risk Read More …
Culture, governance and remuneration
Because primary responsibility for misconduct in the financial services industry lies with the entities concerned and those who manage and control them, effective leadership, good governance and appropriate culture within the entities are fundamentally important. And culture, governance and remuneration Read More …
Culture and governance
Recommendation 5.6 – Changing culture and governance All financial services entities should, as often as reasonably possible, take proper steps to: assess the entity’s culture and its governance; identify any problems with that culture and governance; deal with those problems; Read More …
Remuneration
Recommendation 5.1 – Supervision of remuneration – principles, standards and guidance In conducting prudential supervision of remuneration systems, and revising its prudential standards and guidance about remuneration, APRA should give effect to the principles, standards and guidance set out in Read More …
Conflicted remuneration
Recommendation 2.4 – Grandfathered commissions Grandfathering provisions for conflicted remuneration should be repealed as soon as is reasonably practicable. Recommendation 2.5 – Life risk insurance commissions When ASIC conducts its review of conflicted remuneration relating to life risk insurance products Read More …
5.3 What the case study showed
5.3.1Distribution process Superannuation is a complex financial product that, for many people, is one of their biggest assets. It is different in both character and importance from retail products like a bank account. However, ANZ’s distribution process effectively added Retail Read More …
5.2 Evidence
From 2012 until August 2018, OPC engaged ANZ to distribute the Retail Smart Choice Super product through ANZ branches.[1] The distribution process followed a ‘scripted general advice model’.[2] It was designed to ‘leverage’ a regulatory exemption that allowed branch staff, Read More …