The Commonwealth Bank is facing the prospect of a royal commission into a fraud scandal that left thousands of its customers millions of dollars out of pocket.
A Senate committee has recommended the judicial inquiry as part of its report on the performance of the Australian Securities and Investments Commission (ASIC).
The committee looked at a scandal which saw a group of planners working for Commonwealth Financial Planning (CFPL), a subsidiary of CBA, accused of putting clients’ money into risky investments without their permission.
They were also accused of forging documents and earning hefty commissions along the way.
CBA is accused of trying to cover it up.
“These actions were facilitated by a reckless, sales-based culture and a negligent management, who ignored or disregarded non-compliance and unlawful activity as long as profits were being made,” committee chairman Senator Mark Bishop said.
Senator Bishop described ASIC as complacent in its investigation of the rogue financial planners.
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Meanwhile, last week, the Federal Government introduced its package of measures to wind back Labor’s Future of Financial Advice (FOFA) reforms …
• Peter Whish-Wilson: Greens call on Government to ditch FoFA wind back after ASIC Inquiry findings
