CommFP remediation transcends client migration
The Commonwealth Bank has taken another step in its Open Advice Review program, writing 350,000 letters to Commonwealth Financial Planning (CommFP) clients who were advised over a more than eight year period offering them access to a review, even if they have switched advisers.
The big banking group has told Money Management that the letters are being sent to clients who were customers of CommFP between 1 September 2003 and 1 July 2012.
The mail-out represents fulfilment of an undertaking announced by the Commonwealth Bank in November last year as part of its remediation process flowing from the provision of inappropriate advice by advisers employed within CommFP which, in turn, led to an enforceable undertaking imposed by the Australian Securities and Investments Commission and later scruinty by a Senate Committee inquiry.
The bank is acknowledging its obligation to former customers who have switched advisers or advice groups, stating that they are entitled to receive a review of the advice they received while customers of CommFP.
"If the letter raises questions for customers and they speak with their current adviser, their adviser should tell the customer to contact the program for more information," the bank spokesperson said.
"The letter makes it clear that the opportunity to participate in the program relates to the advice they received from Commonwealth Financial Planning."
Recommended for you
AMP has agreed in principle to settle an advice and insurance class action that commenced in 2020 related to historic commission payment activity.
BT has kicked off its second annual Career Pathways Program in partnership with Striver, almost doubling its intake from the inaugural program last year.
Financial advisers will have to pay around $10.4 million of the impending $47.3 million CSLR special levy but Treasury has expanded the remit to also include super fund trustees and other retail-facing sub-sectors.
While social media can have positive financial influence, the overwhelming risks signal a greater need for affordable advice as Australians continue to seek financial education on social media.
