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Financial planning crisis update

Just a quick note as I noticed in the media this week that Commonwealth Bank Executives have given themselves massive bonuses – isn’t that great!

All the banks have agreed to review and upgrade the level of qualifications needed to be a financial advisor which is long overdue. The important thing they haven’t agreed to is to investigate the use of vertical integration (using unqualified people to sell complex products). This is the real problem in the industry that needs to be investigated by an impartial body (maybe even a Royal Commission). Last Friday night my 19 year old son talked to the Comm.Bank call centre about an unrelated matter and was “badgered” by the employee to change a bank account from a rival bank back to the Commonwealth even though they knew the rival bank had an equally good account.

The Commonwealth Bank have overseen one of the greatest financial planning scandals to hit Australia but the executives still give themselves pay rises. I’m not talking about small rises either. These bonuses are large enough to make normal citizens eyes water.

I won’t go into great detail but let’s just look at one executive – Ian Narev – CEO

Base salary   2,575,000

Bonuses        3,087,984

Shares           2,441,061

TOTAL       $8,104,045

* Figures courtesy of  The Age (click link to see full article).

Yes, that’s right, over $8 Million dollars even after many investors have lost their life savings through bad decisions and mismanagement within the CBA.

It really is incredible  – I’m almost speechless.

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