The units will be demerged into a new company called CFS Group.
Reuters reports that Commonwealth Bank of Australia is stepping up its restructuring efforts as it demerges its wealth management and mortgage broking units into a new company called CFS Group.
“Today’s announcement ... responds to continuing shifts in the external environment and community expectations, and addresses the concerns regarding banks owning wealth management businesses,” Chief Executive Matt Comyn said in a statement.
The move comes as a powerful inquiry which uncovered widespread misconduct in the country’s financial services sector is continuing to unravel the large network CBA and the other three players in Australia’s banking scene have spent years building.
Earlier this month, CBA admitted it had violated money laundering and terror financing laws on 53,750 occasions and agreed to pay a record penalty of $519m (A$700m).
Here’s more from Reuters:
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