Commonwealth Bank boss Ian Narev backs Abbott government's wind down of financial advice reforms

Commonwealth Bank chief executive Ian Narev has said he supports new government regulations that wind back consumer protection laws for financial advice.

Mr Narev, who on Thursday announced a compensation package for victims of misconduct by CBA financial planners, said on Friday that the government's changes to financial advice laws strike the "right balance" for customers and businesses.

Finance Minister Mathias Cormann pushed through new regulations this week before the tabling of a scathing report into the Commonwealth Bank financial planning scandal.

Both Senator Cormann and Treasurer Joe Hockey have since hosed down talks of a royal commission into the scandal.

Senator Cormann said FoFA ''went too far'' and ''a lot has changed'' since the Commonwealth Bank scandal.

The regulations annul part of the previous Labor government's Future of Financial Advice law that would have forbidden banks to reward their financial planners and tellers for steering customers into the institution's own products.

The advisers would also have been forced to tell their former clients how much they are continuing to pay in ongoing fees and commissions.

Mr Narev said the CBA supported the government's compromise situation because it meant financial planners could deliver affordable advice.

''I completely understand, particularly in relation to our business historically, that there are people who would be cynical, given what they've seen years ago in our business, about our motives for supporting this,'' he told Radio National.

''But we actually think it is the right balance and achieves the right outcomes for customers.''

Labor and the Greens say they will move a motion to knock down the regulations, leaving their fate in the hands of cross-bench senators, including those associated with Clive Palmer's Palmer United Party.

Mr Palmer has said he did not support the wind back of the reforms and would ''get rid'' of the Abbott government's amendments.

But Mr Narev said on Friday he did not dismiss criticism of the changes as ''completely wrong''.

''Our view in striking the balance between responsible business and efficient and affordable advice is that the right balance has now been struck.''

He also defended the removal of the catch-all clause that financial planners have to always act in the best interests of their clients, saying: ''For a financial planner that is a very open-ended requirement and it makes it very difficult for them to provide affordable, efficient advice because they don't really know what else they ought to be asking.''

The story Commonwealth Bank boss Ian Narev backs Abbott government's wind down of financial advice reforms first appeared on The Sydney Morning Herald.

Smartphone
Tablet - Narrow
Tablet - Wide
Desktop