The final report put out 76 recommendations, including 10 under financial advice such as the disclosure of lack of independence and an end to grandfathered commissions.
In its response to the recommendations, CBA said it would be moving to a new model in its salaried advice channel, Commonwealth Financial Planning, where customers pay only after the service is delivered.
It also said it would soon be updating its communications to customers to ensure that it discloses “simply and concisely” why an adviser is not independent, impartial and unbiased, and that it will include training for advisers.
CBA has created its own royal commission implementation taskforce that will be chaired by deputy chief executive David Cohen.
During the royal commission hearings, CBA private banking boss Marianne Perkovic had been accused of providing a misleading overview of the bank’s financial adviser numbers.
CBA chief executive Matt Comyn told the house standing committee on economics he welcomed the final report and all of its 76 recommendations.
“Many of the recommendations require direct changes to our business and are already underway. Some of the recommendations will require action by government, regulators and industry bodies before we can implement them,” he said.
“We will support this work and take steps where we can, so that once the regulatory framework is in place, we are ready to act.”
Mr Comyn also said it is implementing the royal commission recommendations transparently and will issue regular updates on its progress.
“The immediate actions we are taking will ensure we are putting our customers first and that we continue to strengthen our governance to become a better organisation,” he said.
“We expect to be judged by our actions, not words, and that is why today I have focused on the actions we are taking.”
these guys need to do what I do. if you follow this process no problem
1. send FSG
2. send adviser profile
3. send asic document (from money smart) financial advice and you
3. send link to asic how to complain section
4. send link to afca link how to complain section
5. send link to own website how to complain section
6. send royal commission Research Paper on conflicts of interest and disclosure Prepared by Professor Sunita Sah, Cornell University, November 1, 2018
7. get the client to initial sign and date each page of all documents confirming you received. this is part of your record keeping obligation
while trying to meet your overarching obligation to provide financial services honestly, fairly and efficiently, ensuring the best interest of the client is served.
client compliant =0
Will this include all of the vertically integrated business’ such as Fin Wisdom etc? I for one will be interested in how this is done and how this will be monitored given the obvious under resourcing of the majors in this space. It is not just CBA that needs to address this issue. Should the major sell off their vertically integrated business’came the public be assured that the terms of sale are fully disclosed including any incentive based or contractual obligations back to the product providers is fully disclosed. Can we imagine a world in which all of the product providers, distribution networks and clients fully understand the deals that are done to ensure the flow of funds still occurs, not likely.
It had been suggested by one BDM that in order for the majors to decouple their distribution business’ such as AMP’s Charter, CBA’s Financial Wisdom, IOOF’s Bridges etc etc, they would have to have some contractual arrangement in place to ensure that the distribution network still utlilise their respective products, so lets see and understand how this might work??
This doesn’t really change anything. Customers have been going to CBA for biased advice, thinking head office will bail them out if their teller come adviser stuffs things up. Not sure if same customers have time and energy or capacity to find so called independent advice. Probably best to stick with the devil you know and pay accordingly. A big win for the big end.
smoke and mirrors again. If a bank adviser is provided a salary then there will always be a confict.
The RC was so good for the banks. Now instead of working with a range of investment/insurance products and working in the clients best interests the CBA employed financial advisers just have to give their clients an extra few pages in their 60+ page SOA and maybe again in their FSG, both of which are never ever ever read, saying that they are not independent and all recommendations will be for in house products.
Kenneth Hayne, how are you enjoying your Cayman Islands bank account filled with Aussie Bank money?
What in-house products ? They are selling CFS & Comminsure
Here we go. The CBA response will be all about CBA putting themselves first. First they threw the mortgage brokers under the bus. Next will be financial advisers. Fresh ideas from international players are desperately required. CBA have shown their spots and will offer nothing to the future of the financial planning industry.