Former CBA head aware of planning problems
The former chief executive of the Commonwealth Bank of Australia (CBA), Ralph Norris, has stated he was aware of some of the problems relating to financial planning advice but considered the compensation scheme enacted by the bank as adequate, according to reports in Fairfax Media.
Norris, who was CBA chief executive from 2005 to 2011, stated he was unaware of what had taken place at the bank regarding advice problems since he had left but believed it had put appropriate resolution systems in place.
He also stated that the advisers who had caused the recent widespread media coverage and attracted comments from a Senate Committee where rogue people and there was no conspiracy within the bank to defraud customers through its advisory channels.
Norris said large organisations like the CBA were at risk from having staff members engaging in dishonest behaviour and that legislation could not prevent these people from being dishonest.
Rather he stated the onus was on organisations to examine their processes to prevent problems in the future and that would be more effective than legislation in curbing dishonest behaviour.
His comments follow the announcement on Friday that former High Court judge Ian Callinan had been appointed to head up the CBA's Independent Review Panel as aimed at addressing compensation issues around the activities of Commonwealth Financial Planning.
Recommended for you
With the highest number of candidates in a year sitting the latest financial advice exam, a surge of new entrants are expected in the coming weeks, according to Wealth Data.
AMP has launched a range of five diversified index managed portfolios on its North investment platform, targeting a younger client demographic.
An NSW adviser, who advised over 120 clients after falsifying her financial advice exam results, has been permanently banned by ASIC.
ASIC has released the results from the latest financial adviser exam, the first to be run since changes to its structure earlier this year.
