A file note written by NAB chief customer officer, consumer and wealth, Andrew Hagger and presented as evidence today confirms top brass bank executives are having internal discussions about a potential sale.
The file note refers to concerns former executive general manager, wealth advice, Greg Miller had about the “shaving” of bonuses for NAB leadership figures.
“[Miller] said that this was an important cultural symbol and that what the organisation was really encouraging then was for [beneficiary nominations] to be swept under the carpet in future,” the file note explained.
“[Miller] said we risked key departures and all at a time when there’s a possibility we will look to sell the advisory business or parts of it in the coming year.”
While speculation about an impending sale of parts of the NAB Wealth business has been published by Fairfax Media publications, the evidence is the first on-record confirmation from senior NAB executives.
However, notwithstanding the evidence, when asked directly by counsel assisting Rowena Orr QC about a potential sale, Mr Hagger was coy on the witness stand.
“NAB is continually looking at our overall portfolio, but there’s no announcement to make here today in the Royal Commission,” Mr Hagger said.
Commissioner Kenneth Hayne interjected:
“Might be some market sensitive information which we’re inquiring about”.
The royal commission financial advice hearings continue today. Follow live: https://www.ifa.com.au/strategy/25404-royal-commission-financial-advice-hearings-live-blog
Quick get rid of it otherwise the NAB will have to pay compensation for allowing investments without client signatures to go through the system… so much for being a custodian to the client
And don’t forget number 1 priority of big banks = BIG executive bonuses !!!
Yep! As as I said below…
Who would possibly buy it? The writing is on the wall for vertical integration to be banned or heavily restricted. And the high levels of costly compliance overhead are about to get even higher. Hard to see anyone with sufficient size to buy it, wanting to go anywhere near it.
ANZ timed their departure well.
yep.. technically speaking…they have really stuffed up our industry!!
When will people stop and realise that the big banks are not humans, they are Corporations?
We (society) have mandated them with a profit imperative, they are only doing as programmed. If we wanted a different outcome we should have never privatised them or we should be demanding legislation to that effect. Be careful what you wish for though as legislation isn’t wielded lightly.
The banks bought into ‘financial planning’ (term used loosely) when they were profitable, simple beasts without huge compliance frameworks… things have changed (for the better) and now that they don’t serve as well to distribute product they will exit. Again, no surprise.
So the big banks determine there was money to be made in financial planning, pillage from the everyday Australians whilst tarnishing the profession of Financial Planning… then as soon as it starts to get tough simply jump ship. The big banks only care about their shareholders above all else.
Don’t forget themselves as senior execs too! That comes first.
What drives me mad is that they take their millions after destroying the reputation of the company that employed them, then just head off to another company to do exactly the same leaving that company in a similar mess. They cut and scrape to improve the company bottom line for their rewards, then bolt.
There’s no long term work ever done; it’s all about the now for these a-holes!