KPMG explores the challenges that the integrated Australian financial services sector faces when it comes to measuring and managing conduct risk and how we can ensure positive outcomes across product design, customer outcome and value for money.
The Australian market is certainly at a key point of transition in terms of managing conduct risk. The advent of Future of Financial Advice (FoFA) and the Turnbull Government’s response to the Financial System Inquiry has provided renewed focus on measures to improve consumer outcomes – particularly in regard to providing confidence in the wider financial system and ensuring consumers are treated fairly.
This factsheet ‘Conduct risk: aligning product, customer and value’ reflects on key conduct risks in the Australian financial services sector and how to develop conduct culture that’s squarely focused on achieving the right balance of customers’ best interests and profitability.
Good conduct is not simply about ensuring customer satisfaction, but delivering a good outcome for the customer. This goes beyond process and procedure – good conduct aims to deliver value for the customer and the shareholder with a balance of customer outcome and profitability for the organisation.
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