Commbank CEO dismisses planning culture problems
The head of the Commonwealth Bank has denied poor organisational culture is to blame for the events that led to a number of its planners being banned by the industry’s regulator.
Responding to claims the bank had a “do what you have to do or else” culture, CEO Ian Narev told the ABC’s Lateline the CBA’s policies and governance had little to do with the incidents.
Narev said he would not comment on Don Nguyen, the planner who was banned from advising after an investigation prompted by several CBA employees sending a letter to the Australian Securities and Investments Commission (ASIC) about his misconduct.
However, he rejected any link between the seven CBA planners banned from giving advice and pressure to sell from within the organisation.
“There is always a risk that one or two of them are going to let the organisation down,” he told Lateline.
“But that is not, a case or two like that, extrapolated out to problems with the culture, nor is it extrapolated out to the fact that certain remuneration policies are inconsistent with good governance and putting the interests of the customer first.”
Narev defended the watering down of Future of Financial Advice (FOFA) reforms - against the backdrop of the misconduct incidents - and said the financial services environment has changed significantly since the seven CBA planners were banned.
“We’re not talking about deregulating it relative to 2008-09,” he said.
“We understand the fact there needs to be more regulation in the industry and the industry is significantly more regulated than it was four or five years ago.”
Recommended for you
A financial advice firm has been penalised $11 million in the Federal Court for providing ‘cookie cutter advice’ to its clients and breaching conflicted remuneration rules.
Insignia Financial has experienced total quarterly net outflows of $1.8 billion as a result of client rebalancing, while its multi-asset flows halved from the prior quarter.
Prime Financial is looking to shed its “sleeping giant” reputation with larger M&A transactions going forward, having agreed to acquire research firm Lincoln Indicators.
An affiliate of Pinnacle Investment Management has expanded its reach with a London office as the fund manager seeks to grow its overseas distribution into the UK and Europe.
