Ms Perkovic – who is the executive general manager of Commonwealth Private and the former EGM of the CBA wealth management business – is currently undergoing intense cross examination at the royal commission hearings in Melbourne over the stated adviser and client numbers at Commonwealth Financial Planning.
The bank executive gave evidence that the number of Commonwealth FP advisers has decreased 25 per cent since 2008, while the number of clients has increased by 100 per cent.
However, counsel assisting Michael Hodge QC took umbrage with the bank’s non-disclosure of the fact that a number of those Commonwealth FP advisers were in fact phone-based advisers rather than full service authorised representatives.
“Does that mean these figures are not deliberately but slightly misleading?” Mr Hodge asked.
Mr Hodge also questioned whether the quality of advice would invariably decrease by way of the widening gap between adviser and client numbers, asking Ms Perkovic whether this was “concerning”.
He pointed to an ASIC report that has expressed concern about financial services entity taking on more clients that they can appropriately service.
Ms Perkovic responded that the bank has increased the number of paraplanning staff, which is a “good thing” in that clients will have a greater number of individuals assessing their advice.
Asked whether it was concerning that paraplanners had lower levels of education and training than financial advisers, Ms Perkovic responded that the bank requires paraplanners to have the same qualifications as advisers, even though they are not authorised to provide advice.
Follow the royal commission financial advice hearings live at https://www.ifa.com.au/strategy/25404-royal-commission-financial-advice-hearings-live-blog
Misleading? This is nothing when compared to the utter BS the Unions did during their inquiry. Not only dodging questions but also purposefully destroying vital corruption evidence and getting clean away with it. The banks do need taking to task no question, but the pure one sidedness of this process and what is happening at every layer of our system is sickening. Also Kell was not roasted for his misleading information supplied to the Government, isn’t that as bad?
About time she gets called out on her BS, would never trust a word that woman says!
What’s happening, the slow train wreck, is no surprise to me. As I was saying years ago, the banks and some others should NEVER have been involved in insurance and superannuation or probably any wealth planning for that matter.
What a shambles it has all turned out to be and it’s not just the banks, look at the Storm Financial debacle, that was verging on criminal and ASIC was asleep at the wheel. And they had the gaul to request a file from little old me while on holidays overseas in a random witch hunt, disgusting!
Thank goodness I am out of it all and enjoying retirement.
Also , The problem is planning practices sell for crazy amounts of money. They are sold on the premise of recurring revenue. And here the royal commission is now talking about recurring client service. These institutions have purchased licences over the years for obscene amounts of money, then become totally obsessed with profit. I’d go one step further and say “growth at all costs”. Well, sorry CBA you are now starting to pay the real price of giving real advice not factory produced garbage hidden under the disguise of a CBA owned badge/brand.
Like watching Slow moving train wreck. That’s all you can call it. All & sundry frustrated by her dodging ever question with corporate drivel. This is why the likes of her get the big $, she will tow the company line all the way and won’t flinch when the dodginess is exposed.
But they pay good dividends that every Australian benefits from !!
Yes banks, please rip me off $$$ and pay me back $ in dividend and I am really grateful that you have helped with my financial well being.
At some point, surely, the customer has to accept responsibility for their gullibility in trusting the bank-cartels.
You know what…I hope the banks cop everything that’s coming to them for what they’ve done to the insurance and financial services industry BUT, I object to ASIC looking for anything they can to pin the banks to the wall.
It can be really difficult for anyone to quantify what’s right and wrong when it comes to ‘ASIC’s concern about (a) financial services entity taking on more clients that they can appropriately service.”
I can tell you from recent (and very frustrating) personal experience – some clients simply won’t respond to advisers when they reach out and offer assistance – no matter how hard they try – so who’s ASIC to say or judge what the right number of clients is to have! That’s just BS in my opinion.
If you knew all the facts and listened to the whole thing you will see they didn’t offer reviews, and 100s were orphaned clients as well with no actual adviser. Coupled with that they had an original service package that didn’t provide even the opportunity for review.
yes – a grab for the money – like the rest of the “superrannuation industry” – gravy train. – including the government…
That’s the point orphan clients are a cash cow!!
Having personally been witness to it, I can attest that CFPs own training slide on the 7 step financial planning process we all know of, was (a) headed “The Sales Process”, and (b) only had 6 steps… it stopped at implementation and did not even mention reviews.
If pre-opt in clients don’t get back to you and therefore you don’t provide a service, stop charging them. Unethical to charge them otherwise. Everyone knows this but the $$ get in the way.
Hayne to Perkovic:
“Ms Perkovic, I have hesitated to interrupt you, I will interrupt once. You will get on better if you listen to counsel’s question — if you have to stop and think about the question do it — but listen to counsel’s question and answer what you’re asked.”
This is fabulous!
That said about half a dozen times and bluntly said at one point she will get hurt if she doesn’t. Did stop her dodging every question.
[color=green]ever been cross examined..? its bloody horrible.
they cook you until they are ready to grill you…do you slowly…
as paul keating once said to john hewson…LOL….
that young QC hodge – see the grin on his face – he loves the thrill…..
its obvious ASIC is supplying the commission with documents…?? !!….[/color]
This wasn’t during said cross exaination (by Hodge). This was said by the Commissioner.
just do a Bill Shorten..”.I cant remember”… the shultz defence i believe.
haha. I believe Oliver North used it to great effect.
What were you cross-examined for?
+ 1
“He pointed to an ASIC report that has expressed concern about financial services entity taking on more clients that they can appropriately service.”
I guess he must be very concerned about industry super funds then… the number of advisers they have compared to number of members is significantly worse than any bank that I know of.
bloody good point…LOL
Yes but this is a skewed position. How many of Industry Fund members seek advice? I wouldn’t imagine it would be that many
Apparently they only need general advice which the industry fund sales team is happy to assist with
The Turnbull government put legislation into the Senate in September, which would grant broad new powers to force the $2.3 trillion superannuation industry to make detailed disclosures of the millions of dollars in hidden annual payments made to unions and employer groups. The new laws would issue orders against funds that failed to act in the best interests of its members.
There is a plan being played out with Superannuation.
Bring on a Royal Commission into the banks. Result, get banks out of Superannuation.
Next, legislate to ban SMSF’s to save these unqualified people from squandering their own savings.
Goal, Unions control 100% of the Superannuation Industry.
Different business model. Don’t make money the same way.