CBA pays 69pc of compensation to 69 planning clients
More than two-thirds of the total compensation offered to clients of the Commonwealth Bank of Australia's (CBA's) financial planning clients under its Open Advice Review, has been paid to just 69 clients, the latest report from the Promontory Financial Group (PFG) reveals.
The report found compensation offers are being considered by a further 96 clients, while another 17 customers, who were found to have received poor advice or charged incorrect fees, have rejected the bank's offer and made a counter offer.
Since the review was opened in May 2015, 1,937 of 9,346 registered cases have been reviewed, with 1,684 being found to have received appropriate advice, and a further 54 clients were found to have been given poor advice that did not lead to financial loss.
The latest report from the PFG, released today, revealed that close to $2.9 million in compensation has been offered to clients who received poor advice resulting in financial loss or who were charged incorrect fees, with 69 per cent of that figure being paid to 69 clients.
The PFG revealed that of the 1,251 cases issued with an assessment outcome in the four months to 31 December 2015, there was no evidence of advice found by bank for 28 cases.
The report showed the number of cases assessed more than doubled in the last quarter compared with the previous reporting period to 31 August 2015.
CBA executive general manager advice review program, Leif Gamertsfelder, said the report outlined the progress the bank had made in the program to deliver assessments in a fair and consistent way.
"The report shows that our investment in building the program's infrastructure has increased our capacity to assess advice, and deliver on our commitment to do the right thing by customers," he said.
AUTHOR
Nicholas O'Donoghue
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