The corporate regulator has appointed KordaMentha Forensic to examine operations within the two licensees, on the lookout for “high risk advisers and affected customers” as well as compliance with the licence conditions announced by ASIC earlier this year.
“ASIC will release the findings, and CFPL and FWL will be required to address any deficiencies identified,” said an ASIC statement.
“ASIC imposed the conditions on CFPL and FWL – and flagged it would appoint an external compliance expert – after a scheme developed to compensate customers of former CFPL advisers was not applied consistently across all affected customers of the two businesses.”
Korda Mentha don’t have a squeaky clean background either – anyone who takes notice of how they run the administrator side of the business would have serious concerns on the morals and standards that this organisation itself has – it is solely a fee generating business with no concern for anything else!
[quote name=”Ross Cardillo”]More BS, tinkering with no real benefit or outcome that is a benefit to the consumer. Does the accounting firm have financial planning experience ?
There is in my view one way to fix this very quickly – ASIC suspend ALL CBA /Fin Wiz licensees and any other name that the bank is hiding behind. The suspension to be lifted when all victims have been compensated, with a banning order in place for ALL CBA planning/sales arms the bank would move rapidly to fix the problem and reopen their sales divisions. Once CBA and they are and belted.[/quote]
So you would ruin adviser lives business’s etc even if they aren’t involved.
This comes from a small number of planners, Before you complain about that staement go to ASIC and see who got struck off. # planners?
to say all CBA should be shut down is absurd.
Rod Magill you seem to have an excellent idea, not too radical but maybe a little difficult in a practical sense! To have all SOA’s assessed by an external group/organisation may be quite a task any way! It is one thing to implement good robust advice, as seems the case in most instances. But, sadly so many times even when there are serious compliance breaches high risk advisers and affected customers they remain undetected. The REGULATOR does have a duty of care, particularly on report! THEY ARE NOT
[quote name=”Ross Cardillo”][quote name=”D G H”]Ross Cardillo, why on earth should hundreds of good financial planning firms and their staff be out of work/facing bankruptcy when they have done nothing wrong? Should all accountants lose their license if one acts inappropriately? Or all solicitors? Or all real estate agents?. My goodness, what a silly comment![/quote]
You keep working for the bank champ[/quote]
No I don’t, champ.
Obviously a serious lack of understanding of reality. Fin Wiz advisers run their own business and are licensed by the bank. They don’t work for the CBA. They have a broad recommended list with no obligation to sell CBA product.
If you guys making the comments are financial planners, it is no wonder the industry is under so much scrutiny – you can’t even respect your colleagues. Disgraceful behaviour from, obviously ignorant, people!
[quote name=”Rod Magill”]A far easier way to look at this going forward is to have ALL SOA’s vetted by an external group/organisation that has no vested interest in the CBA group.[/quote]
An external organisation such as ASIC perhaps?
Why isn’t ASIC able to monitor the licence conditions it has set? Is this a lack of staff with appropriate skills or a lack of money? And who is paying KordaMentha for the work?
[quote name=”Denis Scanlon”]Re Ross Cardillo!
Yes, at least you’ve got the guts to say what’s needed!
Let the puppeteers do what is necessary to regulate under full compliance! Not only must Justice be done; it must also be seen to be done.
A Royal Commission may be a start. After all It’s your money Ralph! theyre wasting and big time![/quote]
Thank you Denis, I believe if you don’t stand for something you will fall for anything and I always back myself.
[quote name=”D G H”]Ross Cardillo, why on earth should hundreds of good financial planning firms and their staff be out of work/facing bankruptcy when they have done nothing wrong? Should all accountants lose their license if one acts inappropriately? Or all solicitors? Or all real estate agents?. My goodness, what a silly comment![/quote]
You keep working for the bank champ
A far easier way to look at this going forward is to have ALL SOA’s vetted by an external group/organisation that has no vested interest in the CBA group. This way all those that are doing the right thing by their clients will be able to carry on with business as usual , where as any that are not looking after their clients best interest will be weeded out very quickly. Our dealer group vet’s every SOA and has the most robust compliance of anyone I know.
Re Ross Cardillo!
Yes, at least you’ve got the guts to say what’s needed!
Let the puppeteers do what is necessary to regulate under full compliance! Not only must Justice be done; it must also be seen to be done.
A Royal Commission may be a start. After all It’s your money Ralph! theyre wasting and big time!
You can only have a limited amount of sympathy for the Fin Wiz/CBA advisers still under these licenses. Why would you stick around and put up with the crap? The writing has been on the wall for years now. Those left are either lazy, on the CBA teat, or still believing the lies dished out by management. By not leaving on mass, these advisers allow CBA management to smear all advisers and dodge the bullets they themselves deserve. For the reputation of all advisers, move on.
Ross Cardillo, why on earth should hundreds of good financial planning firms and their staff be out of work/facing bankruptcy when they have done nothing wrong? Should all accountants lose their license if one acts inappropriately? Or all solicitors? Or all real estate agents?. My goodness, what a silly comment!
Again and again I ask “Why are these AFS licences not simply cancelled or suspended until it can be demonstrated that compliance obligations are being fulfilled”. I bet if you were a small licensee (1 to 5 advisers) your licence would have been gone ages ago if you had been systemically non-compliant for over 10 years.
@ross cardillo
Terrible suggestion!
More BS, tinkering with no real benefit or outcome that is a benefit to the consumer. Does the accounting firm have financial planning experience ?
There is in my view one way to fix this very quickly – ASIC suspend ALL CBA /Fin Wiz licensees and any other name that the bank is hiding behind. The suspension to be lifted when all victims have been compensated, with a banning order in place for ALL CBA planning/sales arms the bank would move rapidly to fix the problem and reopen their sales divisions. Once CBA and Fin Wiz are back in business all plans and strategies to be vetted by a truly independent adviser. This process to be in place for a least 3 years and paid for by the bank. To harsh – ask someone who has lost their life savings.
The banks and fund managers are bullies to ASIC and adviser, they should be treated like the bullies they are and belted.
why appoint an accounting firm as experts?
@D G H
Maybe that’s why it is news. :):):)
This is not breaking news, it is just ASIC doing what they said they would do. Slow news day???