While all of the "high risk" advisers have been removed from CBA, chief executive Ian Narev has revealed that nine advisers who committed administrative breaches are still licensed by the bank.
Mr Narev yesterday announced a new “open advice review” process for aggrieved clients of dealer groups Commonwealth FP and Financial Wisdom and “unreservedly apologised” for the damage done by former advisers.
He told a press conference that the determination of “critical risk” covered a “wide range of activities” ranging from poor advice to “some quite minor administrative breaches”.
“The people who were [determined to be delivering poor advice] are no longer working here,” said Mr Narev.
However, under questioning, the chief executive also admitted that nine advisers who were at the “minor administrative breach” end of the scale “are still working in the business”.
“They, like everyone else, are under constant supervision and monitoring to make sure that they are delivering good advice to clients,” said Mr Narev.
“That has now been bolstered by the systems which can help us ensure that they are indeed doing what they are being asked.”
Mr Narev stressed that none of the nine advisers ever delivered “bad advice to the public”.
“The people still working here are not giving bad advice,” he said.
Meanwhile, Senator Mathias Cormann welcomed Mr Narev’s personal intervention on the matter, describing the press conference appearance as “appropriate” and “necessary”.
“The government will monitor implementation of the open advice review program as we finalise our response to all 61 recommendations of the Senate Economics Committee Report,” Senator Cormann said.
SUBSCRIBE TO THE IFA DAILY BULLETIN
- 15 Nov 2018We’ll lose advisers through FASEA but it’s necessaryBy Adrian Flores
- 15 Nov 2018ASIC flexes its muscles at independent advisersBy James Mitchell
- 15 Nov 2018FPA hands down $50,000 fine on Sam HendersonBy Adrian Flores
- 15 Nov 2018Adviser reviews critical to client retentionBy Adrian Flores
- 14 Nov 2018ASIC bans financial services representativeBy Eliot Hastie
- 14 Nov 2018Fintech should make advice ‘enjoyable’By Adrian Flores
- view all