ANZ provisions for customer remediation
ANZ has announced that its full year 2018 cash profit will be impacted by additional charges, including for customer compensation.
In an announcement released today, the big banking group said that charges of $378 million had been recognised in the second half “for refunds to customers and related remediation costs”.
It said these related to issues that had been identified from reviews to date which remained ongoing.
“Approximately 57 per cent relates to customer refunds impacting revenue, with the balance relating to remediation costs recorded as an expense. The total remediation charge is split approximately 66 per cent/34 per cent between continuing and discontinued operations,” the announcement said.
It said the key items of customer remediation included:
- Compensating customers for issues arising from product reviews in the Australia Division.
- Compensation for customers receiving inappropriate advice or for services not provided within ANZ’s former aligned dealer groups.
Recommended for you
With regional and rural suburbs exhibiting high spare capacity to invest, Money Management speaks to three regional advisers on the opportunities beyond the major cities and the importance of a strong network.
Platform consolidation is expected to accelerate among financial advisers this year, as software company Finura pinpoints which two platforms are set to be the winners, thanks to this trend.
The software provider has made several appointments in its APAC wealth propositions team, with a focus on driving growth across digital advice, Xplan and strategic partnerships.
The platform has announced it plans to close its Xplore managed discretionary account service in 2026 which holds $2 billion in funds under administration.
