Commonwealth Bank announced via the ASX it will ‘demerge’ its wealth management and mortgage broking arms to create an “independent wealth management business” comprised of Colonial First State, Count Financial, Financial Wisdom, Colonial First State Global Asset Management and Aussie Home Loans.
Responding to questions from ifa, ASIC said it is unsure yet whether the new business meets the Corporations Act definition of ‘independent’, but cautioned the new business’ management to remain conscious of the requirements going forwards.
“Under s923A a financial services licensee can only describe itself as ‘independent’ if it meets certain requirements, including not receiving commission and operating without any conflicts of interest,” an ASIC spokesperson said.
“We would need to make further inquiries before we could determine if the new CBA wealth management business, once established, could call itself ‘independent’, but it is important that the current management understands this principle.”
On Tuesday, ifa reported that the Commonwealth Bank’s share price fell sharply following the announcement of the demerger, closing 2.65 per cent down on Monday afternoon.
The same statement was made by NAB when announcing its decision to exit wealth, yet nothing was reported on that. I was waiting for it to be raised for NAB, so maybe its being addressed by ASIC in alphabetical order?
Actually all this demonstrates is CBA’s total disregard for and/or understanding of the law. We can’t selectively (not) refer to a particular law when we speak, act etc, but must obey ALL laws all the time (Anon- “nothing story” – I hope never to share a road with you, just in case you’re obeying only the Corps law that day…) . BTW How about using names? Or is everyone afraid of their own opinions?
Well said Phillip about esepcially about Matt’s comments that this is a nothing story.
It shows you that the culture, the ethics and corporate governance practices are rotten from the top up. An AFSL or it’s rep can’t use these word at all, or even like words in any advertising. It has nothing to do with the context. They are banned full stop. We can’t even say we’re non institutionally owned. It’s a breach, but also it’s morally and ethically wrong. How about some self regulation Advisers? Some of these advisers that work for these firms need to take a good hard look in the mirror and think whether they want to continue working for these firms. If you want to be a professional….leave…otherwise stop whinging about FASEA and commissions being banned.
Hello ASIC? Meet AUSTRAC. Now there’s a regulator…..
Anne – have a snickers.
ha ha funny. classic. that’s a good one. I will.
How is this ASIC schooling CBA on independence?
Do you even know what ‘schooling’ means?
An accurate headline ‘ASIC brushes off journalists concerns with another motherhood statement’ Does nothing in reality.
Not quite the same level of click-bait though.
Wow, that touch them! They wouldn’t dare mislead the market again! What a penalty for this indiscretion and all of their ongoing financial planning issues.
Whose afraid of the little whittle ASIC baby!..you are so scary wary Mr ASIC aren’t you.. ASIC are whimps just do whatever you want people. Like the CBA you can get away with anything. Why bother follow the corps law… the big bad scary wary ASIC will get you. Why bother with all this friggen red tape and compliance when this is the response.
WHAT A JOKE OF A RESPONSE FROM ASIC. IT”S A BREACH OF THE LAW for %$$ sake (that’s me yelling at the top of my voice) and they’ve just gone through a Royal Commission..WTF. If I was an adviser working for CBA or any of it’s entities at my next compliance review I’d simply say why are you wasting my time, WHO CARES what the law states WE can do whatever WE want.
A nothing story. Matt Comyn was referring the independent from CBA, not in reference to the Corps Act.
It’s not a nothing story, the actual media release states “These initiatives will result in the creation of a leading independent wealth management business…” Clearly CBA is claiming the demerged entity will be an ‘independent wealth management business’. It is sloppy for CBA to have said such and I commend IFA for picking it up.
This just shows how ASIC is viewed – clearly CBA would know their definition of independence – but blatantly disregard ASIC – as they continue to be toothless