The de-merged business, CFS Group, will include CBA’s Colonial First State, Colonial First State Global Asset Management (CFSGAM), Count Financial, Financial Wisdom and Aussie Home Loans businesses.
CBA said the move would “unlock value” and allow CFS to pursue its own growth strategy.
The chairman of CFS Group will be John Mulcahy. The search for a chief executive is underway.
Nigel Williams of ANZ bank will become chief risk officer replacing David Cohen who becomes deputy chief executive – leading the de-merger from 5 November.
CBA chief executive Matt Comyn said: “The wealth management and mortgage broking businesses are each high-quality franchises.
“With innovation and disruption in wealth management increasingly favouring specialist companies, they will benefit from independence and the capacity to focus on new growth options without the constraints of being part of a large banking group.”
The move, which was not anticipated by analysts, saw CBA stock fall 2% initially before closing down 2.3% on Monday.