The bank’s group executive of wealth management, Annabel Spring, said the testimony by former employee Russell Phillips at a Senate hearing last week was “highly misleading and often fundamentally wrong”.
Ms Spring said that as at 31 October, the bank has offered $1.77 million to 110 customers who had received bad advice. She added that CBA stands by the quality and integrity of the program and will not “allow these issues to be misrepresented”.
“It is therefore extremely disappointing that the views of one former employee, who worked for the program for a total of 13 weeks, who was part of the review of fewer than 20 customer cases and who was dismissed for improper conduct, would warrant a full public hearing of the committee,” Ms Spring said.
CBA’s Open Advice Review program was set up more than a year ago in response to victims who lost money via its financial planning arm.
Mr Phillips, who was an assessor with the program, told senators the bank’s compensation scheme lacks integrity and does not allow assessors to meet with clients.
Ms Spring, however, said this was misleading.
“Mr Phillips was in the assessment team, which is just one component of a comprehensive and customer-focused approach to case assessment and review. Due to his brief employment with the program, Mr Phillips may not have been exposed to every step in the process,” she said.
“Assessors do not talk to customers directly. Instead, this function is fulfilled by a separate team of review managers in Sydney with expertise in customer service and communication.
“Once a customer’s assessment begins, they are assigned a designated review manager who helps customers to understand the process, the assessment that has been made, and answers any questions.”
Ms Spring added that the program employs 160 case assessors, not 80 as the committee heard, and that it is inaccurate to claim that only two weeks of training is provided.
“In the circumstances referred to in the hearing, only two weeks of training was required for Mr Phillips because he only needed to complete a ‘top-up’ course due to having previously completed RG 146,” she said.
Ms Spring reiterated her offer from last week, which invites the committee to visit the Open Advice Review program premises and view the procedures and practices directly.
At the same time, CBA has posted unaudited cash earnings for the three months ending on 30 September of $2.4 billion. Statutory net profit on an unaudited basis for the same period was $2.3 billion.
…and this is why the whole Financial Advice Industry is struggling to improve it’s public perception and professionalism . Here we have the grossly conflicted ‘as slippery as an eel’ elephant in the room that has plainly done wrong to it’s customers.
Grumpy old bastard I have employed graduates who have treated the concept of learning the profession with contempt and then got a job with the bank who gave them the title they were after without the effort. The title they got. Financial Planner plus a $10k pay rise.Presumably justified by sales targets. We have very good reason to bash the banks.
What an absolute load of rubbish, with clients permission I could send two files which clearly show CBA bullying clients, misleading clients and not compensating clients fairly
CBA is not being fair and paying victims they are minimising losses
[quote name=”Funky Goose”]The reality is that CBA and the other banks have demonstrated,and continue to demonstrate, that their attempts at financial planning are not client centric. They give lip service to the concept but their actions say otherwise. It is appalling that they have been a protected species for so long. The entrance of international players to disrupt their cosy complacency is long overdue.[/quote]
To disrupt their cosy complacency should not be left up to overseas players who will be doing the exact same thing. What is required is for all Independent Practices to take on young planners and provide them with the correct education around meeting client needs. This will mean that you have to put your hand in your own pocket for a change. Enough of the bank bashing. We are all in this together so get on with promoting the youth and our services we provide for many clients. Spread the word Funky Goose of the good things done and get off your high horse…….
[quote name=”Arjie”]160 assessors…and, working for how long? with only 110 customers compensated. One wonders what CBA’s budgets are to maintain the bureaucracy – the actual compensation paid or to be paid out must be only a fraction of the total project costs. When will they become serious?[/quote]
Your understanding of the process is obviously lacking Arjie, I wonder if this is something your clients realise !Thankfully the banks will be able to fund any compensation that is paid. Can we say the same for you ?
Yeah Annabel,
How big is your bonus this year???? There are 8,000 CBA victims out there waiting for compensation. 110 just doesn’t cut it.
Anne
160 assessors…and, working for how long? with only 110 customers compensated. One wonders what CBA’s budgets are to maintain the bureaucracy – the actual compensation paid or to be paid out must be only a fraction of the total project costs. When will they become serious?
The reality is that CBA and the other banks have demonstrated,and continue to demonstrate, that their attempts at financial planning are not client centric. They give lip service to the concept but their actions say otherwise. It is appalling that they have been a protected species for so long. The entrance of international players to disrupt their cosy complacency is long overdue.