CBA increases CountPlus remediation by $220m
Commonwealth Bank of Australia (CBA) has increased its indemnity to CountPlus to cover remediation of legacy fee for no service conduct.
In a statement to the Australian Securities Exchange (ASX), CBA said the indemnity limit had been increased from $300 million to $520 million.
“CBA is committed to comprehensively addressing the full range of remediation issues impacting customers of Aligned Advice businesses including Count Financial Limited, which was sold to CountPlus Limited on 1 October, 2019.
“In connection with the sale, CBA provided an indemnity to CountPlus to cover remediation of past conduct. CBA has increased the limit of the indemnity provided to CountPlus from $300 million to $520 million to cover certain remediation activities that were identified at the time of sale and up to four years post sale.
“The estimates of ongoing service fee customer remediation payments have been revised to reflect actual case assessments performed and remediation payments made, which has been recognised as a post-tax adjustment of $147 million to the Count divestment in 1H23.’’
CBA was expected to substantively complete client assessments by 31 December, 2022.
There was still also the potential for the limit to be increased further subject to certain defined remediation triggers and was not limited to fees for no service conduct.
AUTHOR
Laura Dew
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And yet CBA employed all the ex Count executives who oversee this mess. Any CBA exec involved in buying that dog should not have a career in banking left. Just because CBA earn billions from banking, doesnt mean they should play cowboy with shareholders money. Plus public are the investors via nearly every super fund - they should held accountable as a public institution would.
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