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CBA to sever ties with scandalous wealth management business

The Commonwealth Bank will separate its wealth management and mortgage broking businesses into separate companies.

The de-merger comes as a dramatic attempt by the banking giant to sever ties with the fallout that has come with the banking royal commission.

The move will see CBA’s mortgage business under a new entity called CFS group, which will also include a number of other services.

Chief Executive Matt Comyn tells Ross Greenwood the demerger is good news for customers.

“Ultimately we took a view it was in the best of interest of CBA shareholders to focus on our core banking system.

“We think focusing on our core banking operations and allowing wealth management business, which are all high-quality business, to operate independently and to pursue their own agenda is in the best interest of shareholders.”

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