Commonwealth Bank of Australia's (CBA) specialist financial planner banking division has introduced restrictions on lending to non-accredited dealer groups and their planners.
The restrictions will only be short-term, CBA market specialist national manager Stewart Creighton said.
"We're very bullish about the prospects of the financial planner industry, however due to the increase in demand for lending and other services, we've had to stop lending to non-accredited groups in the interim, so we can ensure the best service is provided to existing clients," Creighton said.
The restrictions are not in response to capital constraints or perceived risk issues, but due to increasing inquiries from existing customers about succession planning, mergers and acquisitions, he said.
"We could throw more amateurs into the division and have greater coverage but that's not an appealing service proposition, particularly when this is a specialist division that requires people with a certain level of financial planning expertise," Creighton said.
"In the long-term we will certainly revisit our capabilities however for now, we want to become a division of leading specialists for the financial planning industry, get to know our existing clients inside and out, and know that we are exceeding our clients' expectations before moving on to new ones."
The Commonwealth financial planner banking division was launched in October last year and services 12 accredited dealer groups, including CBA-owned Financial Wisdom.
