The Commonwealth Bank will 'de-merge' its wealth management and mortgage broking arms to create a “leading independent wealth management business” under the Colonial First State banner.
In a statement to the ASX, the bank has announced its plans to create a new, separate business called CFS Group, which will include Colonial First State, Count Financial, Financial Wisdom, Colonial First State Global Asset Management and Aussie Home Loans.
The bank will also conduct a strategic review of its general insurance business, including a potential sale, the statement said.
“These initiatives will result in the creation of a leading independent wealth management business and enable CBA to enhance its focus on its core banking businesses in Australia and New Zealand and create a simpler, better bank,” the statement said.
Commonwealth Bank chief executive Matt Comyn said the de-merger of the wealth management and broking businesses reflected changes in the industry and consumer preferences.
“With innovation and disruption in wealth management increasingly favouring specialist companies, they will benefit from independence and the capacity to focus on new growth options without constraints of being part of a large banking group,” he said.
Commonwealth Financial Planning will stay within the bank's retail banking services team led by Angus Sullivan.
Meanwhile, the bank's former general counsel David Cohen - who led the legal operations during the parliamentary inquiry into Commonwealth FP and the start of the royal commission - has been named deputy CEO.
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