Commbank concedes it should have acted more promptly
Count Financial could have acted more promptly in switching off fees for orphan clients and notifying a breach to the Australian Securities and Investments Commission (ASIC), according to testimony given to the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.
The Commonwealth Bank’s Marianne Perkovic conceded under questioning at the Royal Commission that the company had been made aware of the orphan client issue with respect to Count advisers some 20 months before it actually filed a breach notice with the Australian Securities and Investments Commission (ASIC).
She conceded that a report provided by major consultancy, Deloitte, had pointed to the dimensions of the problem but countered that the business wanted to further investigate the extent of the issue.
Perkovic also pointed to the higher than usual number of planner exits from Count at the time of the issue.
When senior counsel assisting the Royal Commission, Michael Hodge QC asked whether Perkovic considered there was not a problem, she responded, “we should have done something in a more timely manner”.
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