The Commonwealth Bank of Australia's financial planning banking (CBA FPB) team has changed its lending policies so that unique borrowing arrangements for financial planning firms no longer exist.
Several industry heads told InvestorDaily that CBA FPB, which works only with firms aligned to CBA FPB-accredited dealer groups, had altered its lending criteria for financial planners, but were unsure as to what was happening with existing deals.
A spokesperson for CBA confirmed with InvestorDaily the bank was changing its process and aligning its CBA FPB lending criteria with that of the broader bank, so it was consistent across the board.
"Previously the bank offered a specific package for financial planning businesses and it was quite an attractive package, but we need to ensure when we're lending that criteria is consistent whether we're dealing with an advice firm or the local milk bar," the spokesperson said.
"We will continue to honour existing facilities with financial planning clients but if they want to restructure a loan or increase an existing facility, we will then look at their application under the new criteria."
The spokesperson said while there would no longer be unique lending policies for financial planning firms, the CBA FPB team would continue to operate as it was important that bankers still had specialist knowledge of how financial planning businesses worked.
When asked about whether CBA FPB national head, Ian Anderson, was still employed at the organisation, the spokesperson said he was unable to comment on specific staff but acknowledged that some would be looking for new opportunities.
In July, Anderson told InvestorDaily that the CBA FPB team had added two new staff with further growth expected from the industry segment over the next period.
Anderson was not contactable yesterday afternoon.
