Major banks pay back customers $215.9m

AMP, ANZ, the Commonwealth Bank of Australia (CBA), National Australia Bank (NAB) and Westpac Corporation have now paid or offered customers $215.9 million of an estimated $219.5 million in refunds and interest for failing to provide general or personal advice to customers while charging them ongoing advice fees.

According to the Australian Securities and Investments Commission (ASIC) update on financial advice institutions fees-for-no-service refund programs, there was an additional $155 million in payments and offers since the ASIC’s latest public update which provided compensation figures as at 21 April.

Also, the institutions’ total estimates changed over the past six months as they had investigated the compensation required and in some cases had identified new failures.

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ASIC said it would continue to monitor the institutions’ compensation programs and supervise the institutions’ further reviews to determine whether any additional instances of fees had been charged without advice being provided.

The next public update would be provided in mid-2018.

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