Commonwealth Bank of Australia CEO apologies for financial planning scandal

July 3, 2014

, the CEO of the, this morning "unreservedly" apologised to clients who lost money in a scandal involving the bank's financial planning services arm.

Last week, a enquiry found financial advisers from the Commonwealth Bank had made high-risk investments of clients' money without the clients' permission, resulting in hundreds of millions of  lost. The Senate enquiry called for a into the bank, and the  (ASIC).

Mr Narev stated the bank's performance in providing financial advice was "unacceptable", and the bank was launching a scheme to compensate clients who lost money due to the planners' actions.

In a statement Mr Narev said, "Poor advice provided by some of our advisers between 2003 and 2012 caused financial loss and distress and I am truly sorry for that. [...] There have been changes in management, structure and culture. We have also invested in new systems, implemented new processes, enhanced adviser supervision and improved training."

An investigation by instigated the Senate inquiry into the Commonwealth Bank's financial planning division and ASIC.

Whistleblower, who reported the misconduct of the bank to ASIC six years ago, said in an article for  that neither the bank nor ASIC should be in control of the compensation program.