The Commonwealth Bank advice executives who failed to notify the Australian Securities and Investments Commission (ASIC) about the bank’s fee for no service shortcomings had failed to understand their obligations, according to the bank’s chief executive, Matt Comyn.
Giving testimony to the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, Comyn nominated the fee for no service scandal as being an area in which the bank had failed in terms of its ongoing relationship with the Australian Securities and Investments Commission (ASIC).
He characterised the bank’s approach to its relationship with ASIC as being too narrow, legalistic and defensive.
Comyn said that there should have been much greater ownership of the relationship with ASIC at a business level.
Explaining the tardiness with which the bank reported its fee for no service problems to ASIC, Comyn said he believed that people had not understood the nature of the customer relationship and the need to provide a service.
“It was not understood and it should have been,” he said.
Comments
Calling bullshit on this Matt. CBA knew exactly what they were doing by charging 0.55% fee on all CBAFP clients and not providing any formal review service. Having swapped from another dealer group to CBAFP in 2012, I raised this anomaly numerous times including all the way to Marianne Perkovic and was told the business model could not afford it. It was (and I assume still is) all about the profit margins and bonuses with CBA.
Time for your own RC submission then, and through an MP or Senator (preferably the independent type). Not having a go, would just like to see you do it.
Since the CBA has 'partitioned off" or sold all of their financial advice and broker lending businesses I suggest the bank has an alternative interpretation. "We think this is all too hard and risky!"
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