Commonwealth Bank and ASIC | Senate report

ON 26 JUNE 2014, the Senate Economics References Committee released it’s final report entitled Performance of Australian Securities and Investments Commission.

Of note, the committee found that there had been misconduct on the part of the advisors and planners within the Commonwealth Bank of Australia’s financial planning business and recommended that an enquiry, in the form of a judicial enquiry or Royal Commission, be established to investigate those matters as well as allegations of cover up.

It was recommended that the proposed inquiry identify the conduct amounting to breaches of law or professional standards and review all files to assess the appropriateness of the compensation process and the amounts of compensation offered by the bank.

The Bank’s CEO, Ian Narev, has apologised to the customers who received “poor advice” but and prefers to have an internal “independent” inquiry, called the Open Advice Review Program, rather than a Royal Commission.

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