BANKS and other financial institutions have been advised that they may need to change their behaviour fundamentally as a post-crisis industry landscape emerges.

Monetary Authority of Singapore executive director Ng Nam Sin on Tuesday listed three main areas where change is blowing.

These include moving away from pay structures for staff which rely mainly on commissions, and creating a corporate culture that asks what is 'right', not just what is 'legal'.

Staff may also require retraining to cope with a changing investment climate.

Mr Ng outlined these points during his opening address at the Shorex Wealth Management Forum at Suntec Convention Centre.

He said: 'One potential driver of change is the shift in investor mindset.'

Investors are adopting a 'more holistic view' of their wealth protection needs, and are asking for 'even more transparency' on account management, he said.

'These suggest the renewed emphasis on building trust, enhancing transparency and proper risk management and market conduct.'

Thus, financial bodies will have to review the way in which they deal with clients to 'provide real value and restore confidence'.

For instance, they must ensure that investment advice dished out is 'fair, objective and in the best interest of clients'. Having pay structures that rely mainly on commissions or are biased towards recommending specific products is 'untenable'.

Read the full story in The Straits Times today.