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
The FSCP has announced its latest verdict, suspending an adviser’s registration for failing to comply with his obligations when providing advice to three clients.
Having sold Madison to Infocus earlier this year, Clime has now set up a new financial advice licensee with eight advisers.
With licensees such as Insignia looking to AI for advice efficiencies, they are being urged to write clear AI policies as soon as possible to prevent a “Wild West” of providers being used by their practices.
Iress has revealed the number of clients per adviser that top advice firms serve, as well as how many client meetings they conduct each week.
