Financial advisers need to lift their game after a series of scandals that have damaged trust in the industry, the head of National Australia Bank's wealth business says.
Fresh calls are being made for a royal commission into the sector after victims of dodgy financial advice from the likes of NAB, Commonwealth Bank and Macquarie Group lost millions in savings.
NAB Wealth group executive Andrew Hagger says the bank's financial planning arm is working to change its culture.
"We're working tirelessly to maintain the trust of our customers and fix the areas where we have fallen short," he told an American Chamber of Commerce lunch.
"What is clear is that we, the wealth industry, need to step up."
But there is no need for a royal commission.
"There's been a lot of reform in the sector," Mr Hagger said.
NAB in February confessed to paying out millions of dollars over five years to 750 customers who had received bad advice from NAB Wealth.
Mr Hagger said financial advisers need to earn the trust of clients if they are to play a key role in helping meet the needs of an ageing population, and argued the majority of NAB's 1,600 financial planners do the right thing.
"But while we are proud we are not perfect," he said.
NAB now tells the Australian Securities and Investments Commission about advisers who have left the company, and why.
It also seeks to resolve customer complaints within 45 days and has promised to add independence into the whistleblower and complaints process.
Mr Hagger said cultural change would be made through higher education levels overseen by an independent body, a greater emphasis on complaint associations, continuing professional development and with new entry requirements for advisers.
"NAB strongly believes that qualify advice and advisers are the heart of Australia's wealth system - but we need to get this right," he said.
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