Westpac leads fees-for-no-service compensation

Westpac has paid or offered to pay out the most compensation for fees-for-no-service misconduct since 2016, according to figures from the Australian Securities and Investments Commission (ASIC).

Six of Australia’s largest banking and financial services institutions have paid or offered $1.86 billion in compensation to customers who suffered loss due to misconduct or non-compliant advice.

 

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Compensation payments made or offered by the institution as at 30 June 2021

Institution

Fees for no service misconduct

Non-compliant advice

 

Compensation paid or offered

No. of customers

Compensation paid

No. of customers

Westpac

$578,441,530

71,498

$51,684,367

3001

NAB

$556,144,345

677,531

80,002,139

2183

AMP

$230,418,976

225,513

$38,892,310

2961

CBA

$169,311,920

57,930

$9,354,027

626

ANZ

$96,969,608

32,916

$44,700,475

2123

Macquarie

$4,628,000

1,105

-

-

Total

$1,635,914,379

1,066,493

$224,633,318

10,894

Source: ASIC

AMP, ANZ, CBA, Macquarie, NAB and Westpac undertook the review and remediation programs to compensate affected customers because of two major ASIC reviews.

ASIC commenced the reviews to investigate:

  • The extent of failure by the institutions to deliver ongoing advice services to financial advice customers who were paying fees to receive those services; and
  • How effectively the institutions supervised their financial advisers to identify and deal with ‘non-compliant advice’.



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they'll be paying out more on BT Panorama shortly.

Systemic theft approaching $2B and not one individual charged. Despicable, disgraceful and vile response by the supposed regulator.

So assuming an average of 100 clients per adviser, a bill (per planner, not per practice) of $800,000 each. Wow.

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