Tasmanian Business Reporter April 2019

6 Tasmanian Business Reporter - APRIL 2019
THOUGHT LEADERSHIP
Banks value their
broker partners
WE value the relationship
with our network
of brokers and we value
our customers and the
trust that they continue to
place in us.
Banks have long suffered
from bad reputations.
With major catastrophic
financial events
a not-too-distant memory,
it’s easy to understand
why.
We are now on the other
side of a banking royal
commission damning
because we’ve seen how
banks have been putting
profits before people.
In the first round of
hearings, we heard reports
of dodgy dealings,
the existence of liar loans,
and unscrupulous commissions
in the mortgage
broker space.
For Australia’s banks,
brokers are a key distribution
channel for their
home loan products.
The latest Mortgage &
Finance Association of
Australia figures show
59.1 per cent of residen-
Paul
Ranson
CEO, Bank of us
tial home loans were settled
by the broker industry
in the 2018 September
quarter.
It’s no wonder then,
that broker commissions
came under the scrutiny
of the commission – with
questions being raised
such as: are broker commissions
creating a conflict
between customers’
and brokers’ interests and
leading to irresponsible
lending?
Yet, not all banks, and
not all brokers, are created
equal.
When acted upon responsibly,
the broker/
customer/bank relationship
can be a win for all
involved.
But from the outside,
it can be hard to separate
the responsible banks and
brokers from those who
are not.
Is Bank of us any different
from any other bank?
Well, yes, we are. We are
the only Tasmanian customer-owned
bank.We
exist for our customers.
Brokers, too, are bound
by regulation.
Yet, even with these
protections in place, misconduct
has occurred.
It’s not surprising then,
that the final royal commission
report recommended
increasing the
regulations that brokers,
as providers of financial
advice, are subject to.
When a broker recommends
a Bank of us home
loan to a customer, it’s
our responsibility to make
sure it’s the right product
for them.
If it isn’t, we work with
our brokers to find one
that is. It’s a shared responsibility
that we take
very seriously.
The final royal commission
report recommended
all commissions
be removed and replaced
with upfront fees paid by
the borrower, rather than
the bank.
A month after the report’s
release and in the
lead up to an election,
Treasurer Josh Frydenberg
announced a change
in the Government’s position
on the future of broker
commissions.
Now brokers, operating
under upfront and
trail commission arrangements,
will be left to operate
as is, with a review to
be held in 2022.
We will continue to
work with our broker
partners to ensure the interests
of their clients and
our customers are always
placed first.
Abbey
George
Workplace Relations
www.tcci.com.au
Warning on warnings
PERFORMANCE management of
staff is important to ensure a business
runs smoothly and client needs
are met but also that both parties
understand what is expected of each
other.
Part of this process is annual
reviews and regular “check ins” as
well as potentially issuing warnings
where applicable.
Warnings are an appropriate
means to identify issues of
underperformance or unsatisfactory
behavior.
Section 387 of the Fair Work
Act 2009 states the criteria for
considering harshness if an employee
is terminated which includes at
387(e): If the dismissal related to
unsatisfactory performance by the
person — whether the person had
been warned about the unsatisfactory
performance before the dismissal.
Accordingly, if there is a dismissal
and the employee makes a claim
warnings will be integral.
There is a common perception that
prior to termination three warnings
must given – not the case.
What will be reasonable
will depend on each particular
circumstance and it is therefore
crucial that you obtain advice when
performance managing employees.
There are different types of
warnings that may be give, not
limited to:
• verbal; written; and final.
But there are some aspects that are
fundamental to include when issuing
warnings and it is very important
that you obtain advice and about the
process and also the drafting of any
documentation.
Warnings should:
• outline the issues and responses;
• refer to any meetings as part of
the process;
• refer to any supporting
documentation such as company
policy and procedures;
• outline the corrective action
required;
• state the intended action if there is
no improvement; and
• refer to types and dates or
any previous warnings or other
disciplinary action.
Contact TCCI on the Helpline on 1300 765 123 or the TCCI on 1300
59 122 or workplacerelations@tcci.com.au
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