CBA’s Enterprise scuttled after just one year
A business set up by the Commonwealth Bank (CBA) to take equity stakes in boutique financial planning groups has been shut down after only one year.
The head of the bank’s Enterprise121 division, Kim White, will leave the bank following the decision.
Colonial First State chief executive John Pearce confirmed all other staff associated with Enterprise121 would be absorbed into other divisions of the bank.
Enterprise121, which was established by CBA in September 2004, was intended to provide high-end dealer services to planning groups outside the bank’s network, but also held strong ambitions to take equity stakes in dozens of boutique advice firms, boosting the bank’s overall advice footprint.
In a statement to staff last week, Colonial First State general manager distribution Richard Nunn said the operations of Enterprise121 would be merged into the bank’s Financial Wisdom dealer group, but made it clear that taking minority holdings in planning businesses would no longer be part of the strategy.
CBA is the country’s fourth largest owner of financial planners, with 1,022 authorised representatives across Financial Wisdom and Commonwealth Financial Planning.
“In terms of our aligned dealer groups, Financial Wisdom will be the brand going forward,” Pearce said.
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