ANZ provisions for customer remediation
ANZ has announced that its full year 2018 cash profit will be impacted by additional charges, including for customer compensation.
In an announcement released today, the big banking group said that charges of $378 million had been recognised in the second half “for refunds to customers and related remediation costs”.
It said these related to issues that had been identified from reviews to date which remained ongoing.
“Approximately 57 per cent relates to customer refunds impacting revenue, with the balance relating to remediation costs recorded as an expense. The total remediation charge is split approximately 66 per cent/34 per cent between continuing and discontinued operations,” the announcement said.
It said the key items of customer remediation included:
- Compensating customers for issues arising from product reviews in the Australia Division.
- Compensation for customers receiving inappropriate advice or for services not provided within ANZ’s former aligned dealer groups.
Recommended for you
As the industry navigates the fallout from recent product failures, two major AFSLs have detailed their APL selection process and relationship with research houses, warning a selection error could “destroy” a licensee.
The impending retirement of financial advisers in their 50s could see the profession face significant succession challenges over the coming decade and younger advisers may not be the answer.
With a third of AFSLs being solo advisers, how can they navigate key person risk and ensure they are still attractive propositions for buyers when it comes to their succession planning?
A quarter of advisers who commenced on the FAR within the last two years have already switched licensees or practices, adding validity to practice owners’ professional year (PY) concerns.
