Westpac paid out $200m annually in conflicted remuneration

In statements to the Royal Commission, Westpac noted it has paid out about $200 million in payments each year since 2013 that constitute conflicted - albeit permitted - remuneration.

BT Financial Advice national head Michael Wright provided a statement explaining Westpac has generated a banned commission report that differentiates between payments received from product providers that are permitted or banned. Only permitted payments are passed onto financial advisers.

However, on top of the annual $200 million in permitted conflicted remuneration, Wright explained Westpac has provided or Westpac advisers have received about $222,000 in banned conflicted remuneration since 1 July 2013.

This figure comprises $24,844 in payments received under a brokerage referral arrangement, approximately $64,745 in percentage-based adviser fees paid to dealer groups, $61,000 in volume-based payments made to AMP, $23,000 in adviser commissions deducted from customer accounts, $27,895 in commissions that were paid in relation to superannuation accounts and $20,800 in commissions paid in relation to the ASGARD platform.

Not all of these payments were disclosed in Westpac's submission to the Royal Commission earlier in 2018.

Westpac also provided a statement from BT Financial Group head of platforms product management Constandina Kotsopoulos, who noted that since 1 July 2013, Westpac has made three platforms available as white-labelled products sold under the branding of individual dealer groups.

Under the white-label arrangement, fees paid by clients relating to these products are paid to BTFG subsidiaries.

Read more: WestpacRoyal CommissionMichael WrightASGARDBT Financial AdviceBT Financial GroupConstandina Kotsopoulos
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