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.
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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