Citigroup Wealth Management Australian Controversy, Head Forced Out

Paul Das

6 January 2006

Todd Thomson, the head of Citigroup’s global wealth management business, has had to apologise to more than 200 Australian-based staff who threatened to walk out because of dissatisfaction over management practices, according to reports in the Australian financial press. The controversy has led to the departure of Wayne Yang, managing director and head of Citigroup global wealth management for Australia and New Zealand. Mr Yang was in the position for just six months, although he had been a private banker for Citigroup for more than 15 years. He was appointed to the new position following the formation of the new business group that includes the Citigroup Private Bank and Citigroup Wealth Advisors and as a result, the re-branding of the retail brokerage business outside the US from Smith Barney to Citigroup Wealth Advisors. Citigroup wealth management advisors in Australia had complained about the US firm's relatively tight compliance rules and challenged Mr Yang's move to require stockbrokers to offer financial advice and other traditional private banking products.