Commissions in Financial Services
Commissions have long been part of the financial advice sector with the big banks and insurers paying financial advisors a cut of a policy or loan taken out by a customer. But the commissions have been revealed in the Hayne Royal Commission to be a large contributing factor to misconduct and it lead financial advisors and financial institutions to make sales of products ill-suited to customers.
Vincent Su spoke with Paul Johnson, Warden and Director of the Forrest Research Foundation and Professor of Economic History at the University of Western Australia to find out more about the problem with commissions.
