At a time when the firm is dealing with the aftermath of a colossal money laundering scandal, Australia's biggest bank is left facing senior managerial changes.

The chief executive of scandal-hit Commonwealth Bank of Australia's wealth management unit will leave the group in December, the bank announced today.

Annabel Spring “has decided to leave” following the bank's announcement that it will sell off its Australian and New Zealand life insurance business to Asia-focused insurer AIA Group for A$3.8 billion ($3.1 billion), the bank said, but failed to provide a reason. 

The chief executive of Australia's largest lender, Ian Narev, who will retire by the end of next year, said: “Annabel has made a major contribution to CBA since joining in 2009 as head of strategy. In particular, over the last six years, she has led and managed our diverse wealth management teams through challenging and changing times for the industry overall, and for CBA specifically. She has shown determined leadership in addressing complex and long-standing issues in the businesses while growing and transforming the businesses culturally, technologically and strategically.”

The announcement of Spring's departure comes just one month after financial intelligence and regulatory agency Austrac launched civil penalty proceedings against the bank for “serious and systemic non-compliance” with rules to stop money laundering and terrorism financing. The scandal has already shaved billions off CBA's market value and has sent shockwaves through Australia's financial services sector.

Spring will continue to lead CBA's wealth management business and the divestiture of its insurance business until the end of this year, the bank said. 

Michael Venter, currently chief financial officer of International Financial Services, was today appointed chief operating officer of CBA's wealth management arm. Following Spring's exit, he will work on any organisational change resulting from the move. 

Strategic Review

Meanwhile, CBA also announced today that it is undertaking what it calls a strategic review of its global asset management business, Colonial First State Global Asset Management, also known outside of Australia as First State Investments. 

The business oversees some A$219 billion in assets. The review will consider “a range of options, including an [initial public offering] IPO,” the bank said. 

“This review will consider long-term Commonwealth Bank shareholder value, including whether a separately listed CFSGAM would be better able to grow its business, serve the interests of its clients and attract and retain key personnel,” the bank said in a separate statement. 

Separately to Austrac's money laundering probe, CBA was earlier this month hit with a class-action lawsuit over the money laundering scandal. 

Litigation financier IMF Bentham said it would fund the class-action case against Australia’s largest lender. The firm accuses CBA of making false and misleading statements and failing to disclose breaches of anti-money laundering rules for years. Its lawsuit is separate to one filed by Austrac on 3 August, which triggered a vicious slide in CBA’s share price and left it exposed to potentially billions of dollars in fines. 

IMF Bentham would bankroll the class-action suit on behalf of all CBA shareholders who bought stock between 17 August 2015 and 3 August 2017, seeking damages for the premium paid for the stock as material information remained hidden. 

The case was filed just one day after CBA said it would not file its defence against Austrac’s allegations until 10 days before Christmas.