Marianne Perkovic, executive General Manager, Private Bank at CBA, has endured a car crash session at Australia’s Financial Services Royal Commission.
Commission chair Kenneth Hayne was dismayed at Perkovic’s inability to explain why CBA took two years to inform local regulator, the Australian Securities & Investments Commission, that CBA had charged customers fees but not provided financial advice.
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Hayne told Perkovic: “You will get on better if you listen to counsel’s question and answer what you are asked.
“I do not regard that as answering counsel’s question. Please ask the question again.”
Pervokic finally agreed that CBA’s internal systems had failed, with inadequate supervision and monitoring to pick up problems with financial advice.
More than 1,000 CBA customers were overcharged at least A$700,000 for advice they did not receive because their financial planners had left the bank.
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By GlobalDataAMP (the former mutual Australian Mutual Provident Society) is also under fire and has admitted systematically charging customers for advice they did not receive.
AMP’s head of advice told the inquiry, in a masterly understatement that “AMP’s culture was not as robust as it should be.”
Commissioner Hayne has a year within which to provide the Federal Government with a report on his findings after the Royal Commission has completed its investigations.
