Cormann confirms telling Commbank to sort it out
The Minister for Finance and Acting Assistant Treasurer, Senator Mathias Cormann, has held talks with Commonwealth Bank chief executive, Ian Narev, during which he is understood to have made it clear the big banking group needs to equitably resolve the compensation issues emanating out of its enforceable undertaking.
Senator Cormann confirmed his discussions with Narev during an interview on national television last night, and it is understood the minister pointed to that element of the Senate Committee report which argued that management of the compensation arrangements should be handed to an independent third-party.
While Cormann has signalled the Government's reluctance to embark on a royal commission or judicial inquiry as recommended within the Senate Committee report, he has acknowledged that the Committee's inquiry uncovered practices within the Commonwealth Bank's financial planning businesses and outcomes with respect to the compensation process that need to be quickly resolved.
The minister has continued to deny suggestions that the Senate Committee findings have any significant implications for the Government's regulatory changes to the Future of Financial Advice (FOFA) arrangements.
In the only formal statement issued by Narev since last week's tabling of the Senate Committee report, the bank has signalled it will be issuing a major statement later this week, with most commentators suggesting this will occur on Friday.
Most reports suggest that integral to Narev's forthcoming statement will be a more comprehensive approach to compensation arrangements for clients adversely impacted by advice provided by planners employed by the Commonwealth Bank and its entities.
Recommended for you
With Insignia Financial suffering a cyber attack on its Expand platform, this can potentially have a negative impact on the two private equity bids currently in play for the firm.
State Street Global Advisors has made an equity investment in Ethic, a platform helping financial advisers to produce bespoke portfolios, reflecting the greater client demand for customised portfolios.
WT Financial’s new entity with Merchant, Investco, has entered into a heads of agreement to merge three financial advice firms.
ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test.
