Where is Ian Narev?
A week after the Senate called for a Royal Commission into the Commonwealth Bank’s financial planning arm, the market is still waiting for a response from the bank’s CEO on the financial planning scandal.
Other stakeholders, like the Financial Planning Association (FPA) which is the industry body representing financial planners, are not so quiet.
Yesterday Mark Randall, the FPA’s CEO, called for a “clear plan of action from the CBA to fully compensate all clients and ensure we don’t see a repeat of these appalling events in the future”.
More tellingly, Randall launched into the CBA and its lack of action, saying in a statement yesterday:
It is a shame that our professional community is feeling the pain of consumers hurt by a few bad apples. We recognise there are CBA financial planners, some of them FPA members, who do a great job for their clients and try to do the right thing every day. We stand by those members.
The FPA is correct on both counts and it clearly recognises the damage being done to the profession by the problems at the CBA.
Going another step further, the FPA has called for “a joint committee with CBA to commence the process of identifying all clients and establishing fair and reasonable compensation”.
Equally, Randall and the FPA want to “restore trust and integrity in CBA’s advice business” and no doubt financial planners everywhere.
Pressure is also growing on Narev from political quarters as well, according to the SMH this morning which reports that Finance Minister Mathias Cormann, fresh from his changes to FOFA regulations, is pressuring Narev into action.
The SMH says:
After pressure from Senator Cormann, Commonwealth Bank chief executive Ian Narev, who has presided over a string of record profit results, is expected to make a statement detailing the bank’s response to the crisis as early as Thursday.
That’s today and about time.
You can read the full FPS statement here
UPDATE: The CBA has issued a press release saying Narev will be taking questions at a media conference at 10:45am today.