Commonwealth Bank is offloading its financial advice subsidiary, Count Financial.
The group announced this morning is has entered into an agreement to sell the dealer group to CountPlus for $2.5 million. It will also, over time, sell its 35.9% holding in CountPlus.
CountPlus is a logical owner of Count Financial given its historical corporate relationship and existing holdings in Count Financial firms, the bank said.
According to Rainmaker analysis of the ASIC Financial Adviser Register, as of this morning Count Financial is home to 351 active financial advisers.
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CBA will continue to support and manage customer remediation matters arising from past issue at Count Financial, including following the completion of the transaction.
CBA will provide $200 million in indemnity to CountPlus and all claims under the indemnity must be communicated to CBA within four years of completion.
This includes a potential contingent liability of $56 million in excess of previously disclosed remediation provisions for Count Financial customers of about $144 million.
The transaction is subject to shareholder approval and not expected to have material impact on CBA's net profit after tax. The move sees CBA exit a business that is projected to incur a post-tax loss of about $13 million for FY19.