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17 June 2019
Commonwealth is the latest bank to offload its financial advice arm, selling Count Financial to CountPlus for $2.5 million.
CountPlus was launched as a subsidiary of Count Financial in 2006 and is listed on the sharemarket. It holds equity in 15 Count Financial member businesses.
Commonwealth will continue to manage customer remediation arising from issues at Count Financial, and provide a $200 million indemnity to CountPlus for all claims notified to the bank within four years of the sale.
The figure represents a $56 million potential liability on top of $144 million the bank has already set aside for customer remediation.
Count Financial was sold to Commonwealth by its founder Barry Lambert less than a decade ago for $343 million. It is expected to record an after-tax loss of $13 million this financial year.
The sale is expected to be concluded in October.