The Commonwealth Bank has declared it will cease to provide licensee services through Financial Wisdom by June, next year.
The big banking group used the release of full-year results to the Australian Securities Exchange to announce that it intended to cease providing licensee services through Financial Wisdom by June 2020 and would proceed with an assisted closure.
It said that the Commonwealth Bank would support advisers through an orderly transition to alternative arrangements, including self-licensing and joining another licensee.
“CBA will also continue to manage customer remediation arising from past issues at Financial Wisdom,” it said.
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Another one bites the dust! Before long (if not already), the advice industry will be dominated by industry funds, who in themselves arent' subject to the same level of disclosure & scrutiny as retail/corporate funds. These industry funds have less choice, both in terms of investments and insurance options. How can this be good for competition?
It wont - simples
that's probably right. And I understand the poor standards that the banks et al operated under, but is the cure now worse than the disease?
I do not know what it is, but a reincarnation opportunity somewhere there must be. A rise from the ashes!
So, what's the implication of this for the NewCo divestment? I thought the original plan was to get rid of FinWis (and CountPlus) as part of NewCo. Does closing FinWis and selling CountPlus reflect a change in strategy? Are they now planning to divest NewCo as just CFS without any aligned advice? Or are they now planning to retain CFS after all?
My guess is that NewCo will be buried, along with the appalling name, and CFS will be sold off as an asset management and trustee super firm.
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