CBA regrets inappropriate advice
The Commonwealth Bank of Australia (CBA) says it has worked with customers to “put things right”, after the corporate regulator moved to address inconsistent compensation to customers of two CBA-owned planning businesses.
In a statement, the bank said it “deeply regrets” that a number of Commonwealth Financial Planning (CFPL) and Financial Wisdom advisers did not provide quality advice.
It comes as the Australian Securities and Investments Commission (ASIC) said it would reopen potential compensation claims of up to 4000 customers, after more than 7000 were reviewed and 1100 received compensation.
The regulator also imposed licensing conditions on the two CBA businesses, which would require both of them to undergo significant extra work to rectify matters.
CBA agreed to the amended licensing conditions and noted than compensation had not been applied consistently.
But it said it has made efforts to correct the businesses’ wrongs.
“The Group has worked with affected customers to put things right, remediating them to the position they would have been in had they received appropriate advice,” the bank said.
It also said CFPL is now a “significantly transformed business”.
CBA said it would not comment further at this time.
Recommended for you
Shaw and Partners’ new national head of private wealth believes the biggest challenge for financial advisers right now is being able to deliver efficient advice delivery amid a complex regulatory environment and growing investment universe.
Global equity manager Orbis Investments has appointed a head of marketing from Capital Group as it becomes the latest manager to target advised retail investors.
While Australia prepares for the $3.5 trillion intergenerational wealth transfer, two female advisers have discussed why women may be detracted from seeking advice and the impact of the gender imbalance in the industry.
ETF provider Betashares has launched a global bond ETF as investors pour billions into cash and fixed income ETFs.
