The Commonwealth Bank may have largely exited its wealth management businesses but it is finding it hard to leave behind its history with the big banking group acknowledging another class action against its financial planning dealer groups.
The bank has publicly acknowledged class action proceedings in the Federal Court against Commonwealth Financial Planning Limited and Financial Wisdom Limited in relation to certain CommInsure life insurance policies recommended by financial advisers appointed by CFPL and FWL.
It noted that the proceedings, brought by Shine Lawyers, had also targeted the Colonial Mutual Life Assurance Society Limited.
The Commonwealth Bank’s announcement to the Australian Securities Exchange (ASX) said CFPL and FWL were reviewing the claim and an update would be provided as required.
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Hopefully this class action will fail against Commonwealth Financial Planning and succeed against FinWis.
Consumers fully expect to have inhouse products recommended to them when they choose an institutionally branded adviser from Commonwealth, Westpac, AMP etc. Just as they expect Toyota dealers to recommend Toyotas.
But they expect independent advice when they choose independent sounding advisers like Fin Wis, Hillross, JB Were, Bridges etc. The law has failed consumers by allowing big institutions to acquire independent advice firms and continue to run them with all the appearances (apart from fine print disclosures) of independence.
i will never go into bat for CBA, but seriously these ambulance chasers need to give it a rest. Pity also the article gives no details on what the class action alleges.. Easily found on Shines website i am sure.
I have had a gutful of this... LEAVE BRITNEY ALONE... :(
Commissure, sad story when they fessed up the RC to denying rightful claims as a matter of course - then got found out by their chief medical officer - who sought to redress the issue and was summarily dismissed. A really sad day - as an adviser that really supported their products and recommended these in good faith to clients - on the expectation that all would play by the rules. Really sad disgraceful development. Happily pulled all my clients out - praying we get treated better in the event of a claim with the new insurer
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