CBA suspends exit from mortgage broking business

By Eliot Hastie
 — 1 minute read

The Commonwealth Bank has provided an update on its business plans and has said it is has paused the exit of its wealth management and mortgage broking businesses. 

The update follows last week’s release of the bank’s full response to implementing the recommendations from the royal commission. 

While CBA remains committed to exiting the wealth management and mortgage broking business it has suspended these plans in order to focus on the priorities of refunding customers and remediating past issues. 


Over recent years, the bank has spent $1.46 billion on or provisioned to address refunding customers, including $1.21 billion relating to the wealth management business.  

The $1.46 billion comprises of over $600 million already paid to customers or provisioned to address issues relating to advice quality, ‘fees for no service’ and banking fees and interest.

The program costs and processes of this work has cost the bank $650 million and another $200 million has been provisioned for wealth management related remediation issues and program costs, including ongoing service fees charged by aligned advisers.


The ifa Excellence Awards are back in 2021 and nominations are now open!

This prestigious accolade recognises exceptional professionals within the financial advice industry, shining a light on the outstanding achievements from the nation's best and brightest. If this sounds like you or someone you know, then nominate today for the ifa Excellence Awards 2021! ifa.com.au/excellence-awards


CBA suspends exit from mortgage broking business
investordaily image
ID logo


related articles

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.