Australian stockbroking firm Morgans is set to acquire Commonwealth Bank of Australia’s (CBA’s) CommSec Advisory unit for an undisclosed sum.
According to media sources, Morgans took over the CBA’s retail financial advice arm following a tender process. Ord Minnett and Morgan Stanley Wealth Management are also said to be in contention to snap up the business.
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CommSec Advisory provides financial planning and assistance services to high net worth clients. Part of CommSec, the unit operates separately from CommSec Adviser Services (CAS).
The entity is said to comprise more than ten advisers and manages assets of around A$4bn ($2.71bn) on behalf of its clients.
As part of the transaction, all CommSec Advisory staff will also have the opportunity to migrate to Morgans and join its offices in Brisbane, Sydney, Melbourne and Perth.
The development confirms earlier reports that CBA is reviewing options to sell CommSec Advisory.
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By GlobalDataIn June this year, a CBA spokesperson was quoted by media sources as saying: “As part of our focus on becoming a simpler, better bank, we are currently reviewing a number of options for CommSec’s retail financial advice business, CommSec Advisory, including a possible sale.”
Recently, several prominent Australian banks have unveiled plans to exit financial advisory businesses.
According to Reuters, Australia and New Zealand Banking Group is set to sell its advisory business to IOOF, while National Australia Bank will also shed its pension and advisory unit.
