Law firm considering class action against CBA
A $200 million class action could be brought against the Commonwealth Bank-owned Financial Wisdom on behalf of thousands of investors who claim they lost money due to “bad financial advice”.
Compensation law firm Shine Lawyers says it has been approached by a number of investors who blame poor advice for financial losses, which include their “life savings”, the firm said.
If the action is pursued, Shine says it would claim damages of up to $200 million on behalf of around 3000 investors whose money was put in CBA products through subsidiaries Financial Wisdom, Commonwealth Financial Planning, Colonial Life Insurance, CommInsure and Colonial First State Investments.
The action would home in on the advice investors received and whether CBA and its subsidiaries breached Australian Financial Services Licence duties, the firm says.
The potential action follows recent media investigations, through Fairfax Media and the ABC’s Four Corners, into rogue financial planner Rollo Sheriff.
Sheriff previously owned Meridien Wealth - which operated under a licence held by CBA-owned Financial Wisdom.
The current owner of Meridien Wealth, Premium Wealth Management, is reportedly helping Shine with its investigation.
CBA was contacted for comment.
Recommended for you
Digital advice tools are on the rise, but licensees will need to ensure they still meet adviser obligations or potentially risk a class action if clients lose money from a rogue algorithm.
Shaw and Partners has merged with Sydney wealth manager Kennedy Partners Wealth, while Ord Minnett has hired a private wealth adviser from Morgan Stanley.
Australian investors are more confident than their APAC peers in reaching their financial goals and are targeting annual gains of more than 10 per cent, according to Fidelity International.
Zenith Investment Partners has lost its head of portfolio solutions Steven Tang after 17 years with the firm, the latest in a series of senior exits from the research house.
