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Media Release

Update on Prudential Inquiry Remedial Action Plan

Update on Prudential Inquiry Remedial Action Plan

07 August 2019

Commonwealth Bank of Australia (CBA) today released the Independent Reviewer’s third and fourth reports into the progress of CBA’s Prudential Inquiry Remedial Action Plan.

The reports provide an update on actions CBA has taken to deliver against the Remedial Action Plan from 1 December 2018 to 30 June 2019.

In its fourth report the Independent Reviewer noted the ‘solid progress in executing a necessarily ambitious plan’ and that CBA remains ‘on-track’ to deliver the plan.

As of 30 June 2019, CBA has submitted on time to the Independent Reviewer all of the 75 milestones that were due. 65 milestones have been assessed as ‘complete and effective’ and the assessment of the remaining 10 by the Independent Reviewer is in progress.

The report highlights that the program of work underway has matured and adapted well to changing external circumstances with CBA taking action to address the challenges and risks identified by the Independent Reviewer.

Changes made include establishing Non-Financial Risk Committees (NFRCs) in each business and support unit, mirroring the approach taken in setting up the NFRC at the Executive Leadership Team level, and the creation of a new role, Chief Controls Officers, in each business and support unit to assist leaders in fulfilling both their risk accountabilities and to drive implementation of the plan.

Commonwealth Bank Chief Executive Officer Matt Comyn said: “Momentum is being maintained and we remain on- track to deliver the plan in full.

“Leaders at CBA fully recognise and understand the importance of addressing the 156 milestones relating to 35 recommendations in the APRA report.  With each of these progress reports we have listened and responded to the feedback, adapted our approach as required, and ensured that both the Board and Executive Leadership Team continue to play a strong and active role in overseeing the plan.

“We have learned a great deal over the past year and remain focused on delivering the plan to ensure we make CBA a simpler, better bank for our customers.”

Promontory’s reports can be accessed on the CBA Newsroom. CBA will continue to report on progress twice a year. The next update will be in February 2020.

Background

  • On 1 May 2018, APRA released a report outlining shortcomings in governance, culture and accountability at CBA.
  • The report was constructive and fair and we accepted all of the 35 recommendations.
  • CBA committed to report publicly on its progress against the Remedial Action Plan twice a year.
  • Promontory Australasia (Sydney) Pty Ltd, an IBM Company, is the Independent Reviewer and is providing APRA with quarterly progress reports.