The restructure has seen Commonwealth Bank’s advice and investment business for high-net-worth clients, Commonwealth Private, move from its business banking division – formerly Business and Private Banking – to its Retail Banking Services division.
A spokesperson for the bank told ifa the move reflected the importance of personal banking products, such as home lending and deposits, to CBA’s private client offering.
“We can confirm that Commonwealth Private Bank now sits in the retail business division of CBA, but continues to work closely with teams in the Business Bank,” the spokesperson said.
“The move is designed to further strengthen service and support for our private clients, whose needs and demands, while unique, are predominantly focused on home buying and deposits as well as well as financial advice and investments.”
The spokesperson confirmed there were no staffing or leadership changes to the division as a result of the move.
CBA’s Business and Private Banking division saw a 3 per cent decline in net profit after tax in the first half of the 2020 financial year, while its Retail Banking Services business saw net profits increase by 6 per cent over the same period.
The business banking division also includes the bank’s CommSec online trading business, which recently announced the sale of its wholesale broking arm to Japanese financial consultant Nomura Research Institute.
You only have to look at Private Bank’s leadership to see why it’s going backwards. The same leaders who oversaw the retail bank’s bad advice and demise. They just don’t get the difference between advice product selling.
Dealing with sophisticated investors. Can flog whatever they want. NO SOAs, ROAS and so on and can charge whatever they want. They are playing in the space where profit can be made in financial services. CBA are a disgrace though destroying many adviser/client relationships throughout their smaller dealer groups.
Yep. The excessive regulatory persecution of licensed advisers is just pushing products and consumers into the far more dangerous unregulated space. “Wholesale client” schemes such as private banking is one example of this. So is derivative trading, property speculation, and junk insurance. Consumers are ultimately worse off. Government and the regulators are ultimately responsible.
The banks still talking about products when it comes to advice. They just don’t get it!!!