The Commonwealth Bank is defending its processes in reviewing and remediating the clients of a further five former advisers identified by the Australian Securities and Investments Commission (ASIC) as part of a variation of license conditions.
ASIC identified the further compensation requirements as part of its announcement around the variation of the license conditions applying to Commonwealth Financial Planning and Financial Wisdom flowing out of the latest Compliance Report issued by KordaMentha Forensics.
The Commonwealth Bank stressed that it has already completed the reviews for 90 per cent of the customers of the five advisers.
In a statement issued in the wake of yesterday’s (Tuesday’s) ASIC announcement, the Commonwealth Bank sought to reinforce that it was Commonwealth Financial Planning and Financial Wisdom which had “correctly identified that customers of five advises should be included in a compensation program”.
Further, the bank said all customers had been contacted to advise them that the Commonwealth Bank was conducting a review of their advice, and that “that vast majority of assessment outcomes will be issued to customers by the end of January 2018”.
“This is ahead of the schedule agreed with ASIC,” the big banking group said.
It said licensees were offering customers who received advice the support of a qualified adviser such as a lawyer, accountant or financial adviser to seek independent advice in relation to the review, with fees up to $5,000 plus GST being reimbursed by the licensees.