The Australian Bankers’ Association (ABA) has developed a reference-checking and information-sharing protocol to help members share knowledge of bad advisers and stop them moving around the industry.

It will facilitate sharing of an individual’s compliance record, risk management performance and quality of advice.

The protocol will apply to financial planning businesses owned by the big four banks, and AMP, Bendigo Bank and Suncorp Financial Services will also participate.

The banks will extend the protocol to all bank employees, by adding standardised questions on background checks for prospective employees.

The move is part of the ABA’s Better Banking program.

CEO Steven Munchenberg says the changes come under a long-term industry commitment.

“We’ve heard our customers, and we’re taking action,” he said.

As part of the Better Banking drive, the ABA wants public submissions on product commissions in retail banking. Findings from the independent Sedgwick review of such payments are expected to be published in April.