Commonwealth Bank of Australia (CBA) Wealth Management’s advice division is looking to improve its advice offering by attempting to demarcate financial advice from product solutions.
“[We’re] ensuring that people aren’t conflicted and that the outcome is an advice strategy outcome, not a product solution,” CBA executive general manager of advice Marianne Perkovic told InvestorDaily.
“Our product is advice, not a product to make an investment. It’s up to us to demonstrate the value and not to always link it to investments and a product solution.”
Perkovic said CBA Wealth Management was focusing on the strategy and skills services of its individual advisers.
In addition, Commonwealth Financial Planning (Commonwealth FP) has been meeting regularly with ASIC on its enforceable undertaking (EU) since submitting its first report in late May.
“We continue to meet with ASIC on a monthly basis and ensure we are on track and progress with what we need to do,” Perkovic said.
“It’s progressing well, but importantly it’s helping us have the investment in the business that we need because when you look at our EU, you wouldn’t see that it’s very specific to anything Commonwealth FP.”
Instead, it was attempting to address and solve Future of Financial Advice (FOFA) issues and broader ASIC concerns, she said.
CBA continued to heavily invest in professionalism, best interest and greater access to advice, she said.
“We cannot only work on the EU and the things more centric to our business, but really increase the standards of the industry,” she said.
“There are a lot of things happening with FOFA and the industry, but I really see that it’s a significant change to really enhance the advice offerings to the customers.”
