Bank staff’s sales bonuses in Labor’s sights

Labor is planning a suite of tougher measures to take on the banks that will go further than the royal commission’s recommendations, and could impact bank staff.

LABOR is planning a suite of tougher measures to take on the banks that will go further than the Royal Commission’s recommendations and could target sales bonuses paid to staff.

As the Opposition seeks to portray the Government as soft on banking misconduct, Bill Shorten vowed to implement all recommendations and accused Prime Minister Scott Morrison of trying to avoid legislation.

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Shadow treasurer Chris Bowen also signalled that Labor would announce its own policy to take on the banks before the election.

“As the alternative government we would reserve the right to say more before the election about what we think would be necessary to ensure trust in the banking system and appropriate dealing for all banking victims of banking scandals,” he said.

Mr Bowen pointed to concerns raised by the Finance Sector Union about staff being given incentives to sell credit cards, loans, insurance and financial advice to customers.

The Royal Commission recommended a ban on unsolicited sales of financial products and rebuked ANZ and CBA staff for spruiking superannuation to customers while they were in the branch.

Its hearings unearthed examples of customers being sold financial products they did not need or understand, including a man with Down syndrome being unwittingly charged for life insurance during a cold call from a Freedom Insurance salesman.

Mr Shorten rebuked the Government for previously voting against attempts to set up the royal commission, and demanded Mr Morrison schedule extra sitting weeks to allow time for legislation to be passed before the election.

Parliament will sit for just seven days over the next fortnight before the Budget in April, after which an election must be called.

But Mr Morrison rejected calls to extend parliamentary sittings, saying his government had taken action that has “already gone beyond what the royal commission has actually recommended”.

Labor has vowed to implement all 76 recommendations, including a proposal not endorsed by the government that would make customers and not banks pay commissions to mortgage brokers.

Mr Bowen vowed consult on any legislation if Labor wins the election and said the crackdown on hidden commissions for mortgage brokers could take years to implement.

Originally published as Bank staff’s sales bonuses in Labor’s sights