ASIC wraps up CBA compensation compliance checks
The Australian Securities and Investments Commission (ASIC) has released the final report on the Commonwealth Bank’s (CBA’s) compliance with additional licence conditions that were imposed regarding advice compensation, written by KordaMentha Forensic.
The forensics firm was appointed as an independent expert to monitor the bank’s compliance with the conditions, after the regulatory imposed them on the Australian Financial Services licences of Commonwealth Financial Planning and Financial Wisdom in August, 2014.
The final report found that the bank had complied with the conditions, which required that CBA offer compensation for inappropriate advice that caused financial loss and offer affected customers up to $5,000 to get independent advice from an accountant, financial adviser or lawyer. These were imposed after CBA didn’t apply review and remediation processes to customers of 15 financial advisers, disadvantaging some of them.
KordaMentha Forensic found that the bank had offered a further $2.3 million to 232 clients of five advisers, in addition to $4.95 million already offered to customers of different advisers and $1.9 million to additional customers because of CBA’s review outside of the licence conditions.
This brought the total compensation offered as a result of the conditions imposed by ASIC in 2014 to $9.3 million.
Recommended for you
With the highest number of candidates in a year sitting the latest financial advice exam, a surge of new entrants are expected in the coming weeks, according to Wealth Data.
AMP has launched a range of five diversified index managed portfolios on its North investment platform, targeting a younger client demographic.
An NSW adviser, who advised over 120 clients after falsifying her financial advice exam results, has been permanently banned by ASIC.
ASIC has released the results from the latest financial adviser exam, the first to be run since changes to its structure earlier this year.