CBA has been taken off the ethical fund due to revelations of corporate misconduct discovered by the Royal Commission.

Australian wealth manager Perpetual has divested Commonwealth Bank of Australia from its AU$1.3 billion ($933.6 million) ethical fund due to revelations of corporate misconduct, according to Reuters.

The move could encourage other socially minded stock pickers to divest from Australia’s Big Four banks on ethical grounds.

CBA has suffered a string of scandals over the past year. The Royal Commission (which is looking into the wealth management sector in Australia) revealed practices such as rate-rigging, breaches of anti-money laundering laws, and fees charged to dead clients.

Perpetual’s decision applies to its ethical Australian share product, which listed CBA as one of its largest holdings as recently as April. The fund manager has, however, retained its large CBA holding in its mainstream equities product.

This publication reported on all of the issues to arise from the Royal Commission's investigation into the Australian wealth sector.