Colonial ready to push product through banks
ColonialFirst State is to make a major push to sell its products through Commonwealth Bank branches, according to head of Colonial First State Investments Peter Polson.
“More Colonial First State risk and general insurance products will now be sold through the bank’s planners in the branches,” he says.
“In the first five months of selling limited First State products in the branches, we have had net inflows of $850 million.”
The move comes as the Commonwealth has unveiled details of its restructured investment and insurance business unit, which will include financial planning for the first time.
Polson confirmed the Commonwealth’s two commission based planning groups, Financial Wisdom and Commonwealth Financial Solutions, will now be controlled by the investment unit — the first time distribution and product manufacturing has been linked at the bank.
The two financial planning businesses will be run by Geoff Austin and he will also look after the planners within the branches.
“This will include dealing with branch planners’ compliance, training and licensing,” Polson says.
The other three divisions that will be included in the investment business unit will be Colonial First State, CommInsure, which will look after all risk insurance and the bank’s general insurance business.
Polson says CommInsure is the amalgamation of four risk businesses, L & G, Prudential, Colonial and Commonwealth Life.
“We now have to finally amalgamate the four businesses into best of breed and this will be done under Peter Beck,” he says.
L & G and Prudential were bought by Colonial, and Beck was the former group general manager for strategic development when he was at Colonial.
One casualty of the restructuring of the bank’s investment business is the departure of Graeme Hyland, who was general manager for sales.
But Polson has refuted recent industry speculation that Chris Cuffe, chief executive officer of Colonial, was also leaving the group, saying he was only taking an extended leave of absence later this year.
“Chris is due some long-service leave, which he will take when he gets married later this year,” Polson says.
“Chris has been with us for 15 years and he will be taking up the leave that he is entitled to, but I don’t know how long that will be for.”
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