CBA admits to fresh FOFA breaches

A Commonwealth Bank executive has admitted to the royal commission that one of its licensees accepted prohibited conflicted remuneration after the FOFA effective date.

Speaking before the commission this morning, executive general manager of private bank Marianne Perkovic was quizzed by counsel assisting the commission Michael Hodge about a Commonwealth Financial Planning client who entered a new business arrangement that wasn’t covered by grandfathering provisions.

An SOA given to the client included “a revenue sharing arrangement between the platform and CFPL that would enable up to 0.10 per cent of funds invested to be paid” as commission.

Ms Perkovic asked for additional time to read the SOA after being questioned by Mr Hodge, before confirming to him she was looking to see if the client in question had been a client prior to 1 July 2013 (meaning it would be permissible to continue accepting a commission).  

“It doesn’t appear that they are a client that was pre 1 July 2013, does it?” Mr Hodge asked.

Ms Perkovic gave a curt “no” in response to the questioning.

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“It appears that they are a new client after 1 July 2013,” Mr Hodge replied.

“…Correct”.

ifa’s rolling coverage of the royal commission financial advice hearings continues live today: https://www.ifa.com.au/strategy/25404-royal-commission-financial-advice-hearings-live-blog

CBA admits to fresh FOFA breaches
FOFA, CBA, Commonwealth Bank, COmmBank, Commonwealth Financial Planning, Marianne Perkovic, Royal Commission
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