The Commonwealth Bank has announced it will demerge its wealth management and mortgage broking businesses, creating a new entity named CFS Group.
CBA has announced it will create a demerged business called CFS Group that will include Colonial First State, CFSGAM, Count Financial, Financial Wisdom and Aussie Home Loans.
Today's announcement confirms that the entirety of CBA's wealth management business (with the exception of the salaried advice business Commonwealth Financial Planning) will be demerged.
The demerged CFS Group will also include CBA's minority shareholdings in Countplus and Mortgage Choice.
The chairman of CFS Group will be former Suncorp chief executive John Mulcahy, who was announced as the chairman of CFSGAM on 19 April after the bank announced an IPO of CFSGAM that will no longer push through.
CFS Group is currently undergoing a search for a chief executive.
Following the demerger, CBA will undertake a "strategic review" of its general business, including a potential sale.
The implementation of the demerger is subject to final CBA board, shareholder and regulatory approvals under a scheme of arrangement.
Commenting on the demerger of CFS Group, CBA chief executive Matt Comyn said: "The wealth management and mortgage broking businesses are each high-quality franchises."
"With innovation and disruption in wealth management increasingly favouring specialist companies, they will benefit from independence and the capacity to focus on new growth options without the constraints of being part of a large banking group," Mr Comyn said.