Former CBA head aware of planning problems
The former chief executive of the Commonwealth Bank of Australia (CBA), Ralph Norris, has stated he was aware of some of the problems relating to financial planning advice but considered the compensation scheme enacted by the bank as adequate, according to reports in Fairfax Media.
Norris, who was CBA chief executive from 2005 to 2011, stated he was unaware of what had taken place at the bank regarding advice problems since he had left but believed it had put appropriate resolution systems in place.
He also stated that the advisers who had caused the recent widespread media coverage and attracted comments from a Senate Committee where rogue people and there was no conspiracy within the bank to defraud customers through its advisory channels.
Norris said large organisations like the CBA were at risk from having staff members engaging in dishonest behaviour and that legislation could not prevent these people from being dishonest.
Rather he stated the onus was on organisations to examine their processes to prevent problems in the future and that would be more effective than legislation in curbing dishonest behaviour.
His comments follow the announcement on Friday that former High Court judge Ian Callinan had been appointed to head up the CBA's Independent Review Panel as aimed at addressing compensation issues around the activities of Commonwealth Financial Planning.
AUTHOR
Jason Spits
Recommended for you
Money Management examines the share price of financial advice licensees over one year to 31 March, with M&A actions in the final quarter having a positive effect for two licensees.
A $3.5 million settlement for victims of Melissa Caddick has been approved by the Federal Court following an initial agreement last December.
The Reserve Bank of Australia has delivered its first rate decision since the introduction of a new board structure last month.
Digital advice provider Otivo has launched an interactive tool, powered by artificial intelligence and Otivo’s own advice engine, to help answer client questions.
