CBA compensates over 700 clients
The Commonwealth Bank's (CBA's) Open Advice Review Program has so far resulted in the payment of over $9.4 million to more than 700 customers, with the bank set to finish remaining assessments by the end of the year.
CBA issued a statement, which said it had completed 5,300 assessments (as at 30 August) out of around 8,600 customers who requested a review of their advice.
The Open Advice Review Program, which began in 2014 as a response to concerns about poor financial advice provided by Commonwealth Financial Planning and Financial Wisdom between September 2003 and July 2012, included contacting around 350,000 customers.
"It's a rigorous and thorough process, which continues to show that in the vast majority of cases our customers received the right advice," the bank said.
"We are also putting things right for customers who received poor advice and lost money as a result of the advice."
The bank had paid $4.8 million in compensation for 414 cases in the program as at 30 April, according to a report by the independent program expert, Promontory Financial Group.
The bank said it had paid an additional $52 million in compensation in the past.
Additionally, the bank said more than 84 per cent of the advice provided was appropriate.
AUTHOR
Malavika Santhebennur
Recommended for you
An adviser has received a written reprimand from the Financial Services and Credit Panel after failing to meet his CPD requirements, the panel’s first action since June.
AMP has reported a 61 per cent rise in inflows to its platform, with net cash flow passing $1 billion for the quarter, but superannuation fell back into outflows.
Those large AFSLs are among the groups experiencing the most adviser growth, indicating they are ready to expand following a period of transition and stabilisation after the Hayne royal commission.
The industry can expect to see more partnerships in the retirement income space in the future, enabling firms to progress their innovation, according to a panel.
