The Sedgwick Review failed to address some of the "unconscionable" remuneration practices undertaken by banks to cross-sell superannuation products and nothing is being done to curb this, Industry Super Australia says.
In response to the independent review on retail banks' product-based commissions and remuneration practices, Industry Super Australia chief executive David Whiteley said super should logically be subject to stronger protections than other financial products.
"It is a tall order to ask staff to both meet sales targets and genuinely serve customer needs when the products they are required to sell are designed to generate revenue and therefore may not be the best on offer," he said.
Whiteley suggested cross-selling of superannuation products to banking customers through general advice should be subject to a "better-off" test to ensure consumers are not disadvantaged by the switch.
"The 'for-profit' culture enshrined in the banks business model raises questions of the appropriateness of banks involvement in compulsory superannuation, given super is a mandatory savings system central to Australia's long-term economic and social prosperity," he said.
Meanwhile the Finance Sector Union of Australia welcomed most of the recommendations, but said the review limited itself to examining the bottom three tiers of retail banking jobs and did not provide remuneration details for any staff above the branch manager level.
FSU national secretary Julia Angrisano said the review fell short of fully examining the areas of banking that have been rocked by scandal over recent years.
"What we need is a full inquiry into banking and the financial services sector so Australians can be confident that when they interact with financial institutions they won't be exploited," she said.