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
Recommended for you
With an advice M&A deal taking around six months to enact, two experts have shared their tips on how buyers and sellers can avoid “deal fatigue” and prevent potential deals from collapsing.
Several financial advisers have been shortlisted in the ninth annual Women in Finance Awards 2025, to be held on 14 November.
Digital advice tools are on the rise, but licensees will need to ensure they still meet adviser obligations or potentially risk a class action if clients lose money from a rogue algorithm.
Shaw and Partners has merged with Sydney wealth manager Kennedy Partners Wealth, while Ord Minnett has hired a private wealth adviser from Morgan Stanley.
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.