To give personal financial advice in Australia, you must hold an Australian Financial Services Licence. Our practice, Menico Tuck Parrish Financial Services Pty Ltd, is authorised to provide financial advice under a Licence held by Financial Wisdom Limited, which is a wholly owned subsidiary and part of the wealth businesses of the Commonwealth Bank.
On Monday 25 June, Commonwealth Bank announced steps to demerge their wealth businesses, into a new, separate financial services company called CFS Group which will include CFS Global Asset Management, Colonial First State, and the self-employed financial advice businesses which include Financial Wisdom.
The CFS Group will likely become a significant large-cap company on the ASX in its own right with access to a strong balance sheet and capital, to pursue an independent agenda spanning superannuation, investments and advice. As one of the largest super and pension providers in the country, this decision by the Group is testament to the strength of CFS.
A demerger offers some important benefits:
- It is a clean and timely exit which creates certainty for all stakeholders that there is a plan to move forward.
- CBA shareholders will receive a proportionate interest in the de-merged entity, relative to their CBA shareholding. This enables them to either participate in the growth of the CFS Group over time, or should they prefer, they can also exit and sell on market.
There are a number of steps and approvals involved in a demerger process and the Group is targeting to have the process finalised by the end of the 2019 calendar year.
There is nothing you need to do
There is no change to our advice relationship and for those with investments via CFS your assets will continue to be expertly managed by them.
If you have any questions, please do not hesitate to contact Anthony or Jo. You may also like to visit cba.com.au for more information.