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‘Very strange decision’: CBA backs down from plans to sell its wealth business

The Commonwealth Bank has suspended its plans to sell off its wealth management business and mortgage brokerage businesses, despite recommendations from the royal commission.

Colonial First State and mortgage brokerage business, Aussie Home Loans, will continue to be owned by the bank.

The bank has said they want to concentrate on remediation with the customers.

CEO Matt Comyn had, at the time, told Ross Greenwood he agrees with the royal commission’s suggestion that mortgage brokers should not be paid by the banks, but rather by the client.

“They were my views then, they remain my views today,” he said.

The Finance Brokers Association of Australia Managing Director Peter White tells Ross Greenwood it is “a very strange decision”.

“You’ve got to sit back and wonder how much was done for the pure pursuit of profit.

“It certainly leaves us all a little bit dumbfounded and confused as to where CBA stands.”

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