Westpac's in-house financial advice model questioned

A "dramatic" rise in compliance costs for Westpac's financial advice business has forced chief executive Brian Hartzer to reconsider his commitment to the bank's full-service wealth operations.

Mr Hartzer has long said that banking and wealth operations can co-exist, even as his rivals have fled the scandal-hit sector. Although he is still standing firm in his support of such vertical integration – where a company gives advice and sells financial products – on Monday he conceded running an in-house financial advice business sustainably was a challenge.