Sept 23 (Reuters) - Australian stockbroker Morgans on Monday said it would take over the advisory business of Commonwealth Bank of Australia’s online stockbroking firm, CommSec, for an undisclosed sum.
The deal, described as a “transition” by the Brisbane-based firm, comes as CBA and its large banking rivals are divesting their advisory businesses following a national inquiry that exposed widespread misconduct in those units.
“CommSec’s advisory business will transition to Morgans,” the Brisbane-based stockbroker said in a statement. Both CommSec and Morgans declined to put a value on the deal.
The Australian Financial Review reported on Monday that CommSec’s advisory arm consisted of “about a dozen” advisers who advise clients on assets worth up to A$4.5 billion ($3.05 billion).
The deal comes following a tender conducted by CBA, the newspaper added. The bank in June said it had agreed to sell its advisory firm Count Financial Ltd for A$2.5 million and would continue its exit from its other advisory and broking units.
National Australia Bank has also decided to offload its pension and advisory unit, MLC, while Australia and New Zealand Banking Group has agreed to sell its advisory business to IOOF. ($1 = 1.4754 Australian dollars) (Reporting by Shriya Ramakrishnan in Bengaluru; Editing by Alex Richardson)