 | |
| Formerly | First State Fund Management (1988–1994) State Bank (1994–1996) Colonial State Bank (1996–2000) |
|---|---|
| Company type | Subsidiary |
| Industry | Financial Services |
| Founded | August 1988 (First State) 23 November 1994 (Bank) 23 September 1996 (CFS) |
| Headquarters | Sydney, New South Wales , Australia |
Key people | Clive van Horen - CEO |
| Products | Investment, Superannuation and Retirement |
| AUM | AU$170 billion (September 2025)[1] |
| Parent | KKR (55%) Commonwealth Bank (45%) |
| Website | www |
Colonial First State (CFS) is an Australian wealth management group that provides investment, superannuation and retirement products to individuals as well as corporate and superannuation fund investors.[2]
History
The company was established in 1988 when the State Bank of New South Wales created First State Fund Management as a subsidiary. In 1994, Colonial Mutual acquired the State Bank of New South Wales from the NSW Government. On 23 September 1996, the merged entity was rebranded as Colonial State Bank, with First State Fund Management being branded as "Colonial First State" (CFS).[3][4][5] CFS demutualised in 1997 and in 2000, it was acquired by the Commonwealth Bank, with the Colonial State Bank division being merged into the Commonwealth Bank.
In May 2020, owner Commonwealth Bank announced that, subject to gaining approval from the Australian Prudential Regulation Authority and Foreign Investment Review Board, it would sell a 55% interest in the business to KKR.[6][7] The transaction was completed in November 2021.[8] On 1 December 2021, CFS became a standalone company.[citation needed]
CFS announced its commitment on climate change, aligning itself with the goals of the Paris Agreement and committing to net zero emissions by 2050 and to a 30 per cent reduction in Greenhouse Gas emissions from 2019 levels for its investment portfolios.[9]
Controversies
In 2020, the Australian Securities and Investments Commission (ASIC) commenced legal proceedings against Commonwealth Bank and CFS in relation to alleged conflicted remuneration of $22 million paid by CFS to Commonwealth Bank for the distribution of a super product issued by CFS. In 2022, the Federal Court of Australia dismissed the case and in 2023 dismissed an appeal by ASIC.[10]
In 2021, the Federal Court of Australia fined CFS $20 million for misleading superannuation members, resulting in CFS paying $67 million to remediate losses to 5,815 members. The court found that:
- CFS had told its members that legislative changes required CFS to contact them to obtain an investment direction to stay in the FirstChoice Fund when that was not the case
- CFS failed to tell members that if Colonial did not receive an investment direction from the member, it was required to transfer the member's superannuation contributions into a MySuper product.[11]
In 2022, CFS settled a $56.3 million class action lawsuit with Maurice Blackburn for allegedly failing to transfer beneficiaries’ accrued default amounts to a MySuper as soon as reasonably practicable; however, the settlement came with no admission of liability or wrongdoing by CFS.[12]
In 2023, CFS settled a $100 million class action lawsuit with Slater & Gordon for allegedly raising fees on superannuation members to fund ongoing commissions to financial advisers; however, the settlement came with no admission of liability or wrongdoing by CFS.[13]
References
- ^ "2025 in super: the peaks and the flows". Colonial First State. 4 December 2025. Archived from the original on 21 January 2026. Retrieved 22 January 2026.
- ^ "CBA ASX announcement: Divestment of global asset management business" (PDF). firststateinvestments.com. 31 October 2018. Archived (PDF) from the original on 28 November 2018. Retrieved 19 March 2019.
- ^ Flint, Jeremy (30 August 1996). "Colonial's State Bank gets ready for a new name". The Sydney Morning Herald. p. 23. ProQuest 3179155251.
- ^ Verrender, Ian (23 September 1996). "Change of name for the State Bank lacks note". The Sydney Morning Herald. p. 3. ProQuest 3179126888.
- ^ Hornery, Andrew. "Yawns all round for bank revamp". The Sydney Morning Herald. p. 2. ProQuest 3179137170.
- ^ "CBA announces agreement to sell 55% stake in Colonial First State to KKR". www.commbank.com.au. Archived from the original on 12 November 2025. Retrieved 28 March 2024.
- ^ "Colonial First State Leadership Team Update :: Colonial First State". 5 July 2021. Archived from the original on 19 July 2021. Retrieved 28 March 2024.
- ^ "Completion of sale of 55% interest in Colonial First State to KKR". www.commbank.com.au. Archived from the original on 14 December 2021. Retrieved 28 March 2024.
- ^ "Colonial First State commits to net zero by 2050". Colonial First State. 28 October 2021. Archived from the original on 5 November 2023. Retrieved 28 March 2024.
- ^ "23-222MR Full Federal Court dismisses ASIC appeal but clarifies conflicted remuneration provisions". asic.gov.au. Archived from the original on 28 March 2024. Retrieved 28 March 2024.
- ^ "21-276MR Colonial First State to pay $20 million penalty for misleading superannuation members". asic.gov.au. Archived from the original on 4 August 2025. Retrieved 28 March 2024.
- ^ "NOTICE OF PROPOSED SETTLEMENT" (PDF). Maurice Blackburn. 2 May 2022. Archived (PDF) from the original on 28 March 2024. Retrieved 29 March 2024.
- ^ "CBA's former wealth arm settles class action for $100m". Australian Financial Review. 14 July 2023. Archived from the original on 28 March 2024. Retrieved 28 March 2024.
External links
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