OPINION: Guilty as charged – that's the tacit admission from some of Australia's largest financial institutions as they prepare for sweeping changes in the wake of the ongoing Royal Commission of inquiry into the finance sector.
The Commonwealth Bank of Australia (CBA) has announced it will separate out its wealth management and mortgage broking businesses into a new entity, CFS. It is also looking to sell its general insurance division. ANZ has recently sold its Australian financial advice business, OnePath Pensions and Investments, and National Australia Bank (NAB) plans to sell its wealth management division, MLC.
Australia's financial institutions are facing up to the significant conflicts between those parts of their businesses that manufacture investment products and those that provide investment advice..