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
Comments
Considering the number of clients compensated by NAB, it is likely the others have a long way to go yet.
Not sure - NAB hasn't even started down it's aligned licensee's yet but it's coming. Then it will move the down the dealer ladder size by size all the way through.
They should stop calling it “fee for no service” when companies like AMP are refunding thousands of clients millions of dollars without even checking if service was provided. Any client who was paying under $400 per year are being refunded automatically. Many businesses were servicing these clients regularly and this should be noted.
Exactly. But there is a bigger issue here. If CBA, AMP etc want to spend millions on a PR campaign under the misleading name of "fee for no service" then that's their commercial decision. But in doing so, they are often besmirching the reputation of the adviser who actually provided the service.
CBA, AMP etc should also be paying compensation to the advisers they have defamed by falsely claiming service wasn't provided.
Add new comment