In an official submission to the Senate inquiry into the performance of the corporate regulator, former Commonwealth FP clients Merv and Robyn Blanch outlined the full impact of the poor advice on their financial and mental states.
“We have sacrificed our privacy to help expose [Commonwealth FP’s] activities in an attempt to see some justice served; the cost to us… has been far greater than just our extensive financial losses,” Mr and Mrs Blanch wrote in the submission.
“We need to see ASIC made accountable for what they didn’t do to protect investors… and we want to see [ASIC deputy chairman Peter] Kell and [ASIC chairman Greg] Medcraft dismissed,” the submission stated.
The submission went on to state that the incident had shaken their faith in the financial planning profession, explaining they are concerned about “the financial future of [their] children and grandchildren” if action is not taken to stop similar occurences.
Mr and Mrs Blanch also called for “everyone in CBA’s management who covered up [Mr nguyen’s] activities” to be prosecuted.
Yep, I hear them and I agree with them
The financial planning community is with you Mr and Mrs Blanch and our heart goes out to you and your family. We have also been frustrated and angry at the lack of action from ASIC. They continue to waste public resources on pursuing ideology and ignore the big issues. Who can I call to dob in bad advice when I see it? Who will investigate? Answer…. no-one. We have just witnessed the greatest financial crisis since 1929 and what is ASICs response? Blame shifting, red tape and regulation. A major cultural change is needed.
Until this scourge in our society of protected species based on financial & political clout is removed, banks like CBA continue to get away with blue murder. Of course ASIC is responsible as the overseer of this industry. Of course the management all the way up the line at CBA should be exposed. As recently noted, the whistleblower re CBA FP had no reaction at all for 18 months. The system is flawed. That doesn’t mean you give up. Well done to these clients for having the courage for their submission. They raise a very valid and often not recognised consequence of the dodgy activities allowed by CBA management of the physical, mental and emotional effects to an aggrieved client. Class action the bank for the lot I say for the works. Like sections of the community, money is the only language they know and care. Hit them where it hurts. So what if the banks are a 1/4 of the market and therefore will affect your super fund. Bigger issues here.
There were plenty of worse mortgage trusts to be in, at least the CFS Income Fund is returning practically all the capital. There are many out there who will return no capital, not one brass razoo…but you won’t hear about those as much because they were more the DIY type. Look at Banksia and Gippsland. People put their lifesavings in those funds thinking they were banks…they may get no compensation. There is no CBA to cough up, no PI cover to fall back on and I would imagine no Slater & Gordon either because there is no PI cover or cashed up bank to pursue.
I can’t believe this can still occur in such an organisation. The compliance regime is sometimes more concerned with ticking boxes than actually ensuring the actual advice provided was appropriate. I feel for the poor couple that did the right thing in paying for advice and now is worse for it.
…and I would also suggest the CBA management (current and previous) and the CBA board that have done their best to avoid accepting any level of meaningful responsiblity should also fall on their swords. This has been and continues to be one large messy protracted cover-up that has ‘Storm’ written all over it.
Sure ASIC failed and kept failing with Storm and others despite their senate submission, but what about the perpetrating bank? No penalty for the bank who allowed this fundamental flaw to continue working and poorly compensated its customers for their losses, if at all.