Fee-for-no-service bulk of compensation
Fee-for-no service (FFNS) accounts for the bulk of compensation paid for misconduct by the six largest banking and financial services to customers at $607.85 million, and another $141.87 million for non-compliant advice, according the corporate watchdog’s data.
In an announcement, the Australian Securities and Investments Commission (ASIC) found that the Commonwealth Bank had paid or offered the most in compensation for FFNS at $164.86 million to 50,576 customers, as at 31 December, 2019.
The bank had paid out $9.39 million to 628 customers for non-compliant advice.
The second largest amount of payment or offer of payment for FFNS was NAB at $163.86 million to 586,961 customers. It had paid out $39.94 million to 1,294 customers for non-compliant advice so far.
AMP came in at third for FFNS compensation where it had paid or offered $140.5 million to 193,167 customers. For non-compliant advice it had paid $26.66 million in compensation to 1,987 customers.
|
Institution |
Non-compliant advice |
FFNS misconduct |
||
|
|
Compensation paid |
No. of customers paid compensation |
Compensation paid or offered |
No. of customers paid or offered compensation |
|
AMP |
$26,654,023 |
1,987 |
$140,459,870 |
193,167 |
|
ANZ |
$36,205,259 |
1,777 |
$59,415,383 |
21,184 |
|
CBA |
$9,386,454 |
628 |
$164,846,374 |
50,576 |
|
Macquarie |
Not applicable |
Not applicable |
$2,583,645 |
734 |
|
NAB |
$39,944,208 |
1,294 |
$163,862,768 |
586,961 |
|
Westpac |
$29,680,142 |
1,365 |
$76,686,356 |
19,441 |
|
Total |
$141,870,086 |
7,051 |
$607,854,395 |
872,063 |
Source: ASIC
Recommended for you
ASIC has launched court proceedings against the responsible entity of three managed investment schemes with around 600 retail investors.
There is a gap in the market for Australian advisers to help individuals with succession planning as the country has been noted by Capital Group for being overly “hands off” around inheritances.
ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager.
Having peaked at more than 40 per cent growth since the first M&A bid, Insignia Financial shares have returned to earth six months later as the company awaits a final decision from CC Capital.
