The Finance Brokers Association of Australia (FBAA) supports the recent call by the Australian Council of Trade Unions (ACTU) for greater regulation and disclosure around the performance bonuses of bank sales staff.

FBAA National President, Peter White, said greater disclosure was required given performance bonuses are today more aggressive and account for a far greater proportion of the overall remuneration of bank sales staff.

“Greater disclosure around the performance bonuses of bank staff where they are linked to the recommendation of a loan product would not only better protect consumers but provide a more level playing field with respect to brokers,” Peter said.

“Finance and mortgage brokers are compelled to disclose all commissions to clients and we don’t see why bank sales staff should be exempt from the same obligations.

“The FBAA believes there should be complete transparency with respect to the financial benefit any person stands to gain by recommending a loan product. Whether that person is a broker or employed by the financial institution should be irrelevant.

“With an increasing number of Australian households facing financial hardship every measure needs to be undertaken to ensure consumers are provided with all the information required to make the best financial decisions.

“Understanding any incentives that lie behind a loan product recommendation is fundamental to making informed choices,” Peter said.