CBA compensates over 700 clients
The Commonwealth Bank's (CBA's) Open Advice Review Program has so far resulted in the payment of over $9.4 million to more than 700 customers, with the bank set to finish remaining assessments by the end of the year.
CBA issued a statement, which said it had completed 5,300 assessments (as at 30 August) out of around 8,600 customers who requested a review of their advice.
The Open Advice Review Program, which began in 2014 as a response to concerns about poor financial advice provided by Commonwealth Financial Planning and Financial Wisdom between September 2003 and July 2012, included contacting around 350,000 customers.
"It's a rigorous and thorough process, which continues to show that in the vast majority of cases our customers received the right advice," the bank said.
"We are also putting things right for customers who received poor advice and lost money as a result of the advice."
The bank had paid $4.8 million in compensation for 414 cases in the program as at 30 April, according to a report by the independent program expert, Promontory Financial Group.
The bank said it had paid an additional $52 million in compensation in the past.
Additionally, the bank said more than 84 per cent of the advice provided was appropriate.
AUTHOR
Malavika Santhebennur
Recommended for you
Net cash flow on AMP’s platforms saw a substantial jump in the last quarter to $740 million, while its new digital advice offering boosted flows to superannuation and investment.
Insignia Financial has provided an update on the status of its private equity bidders as an initial six-week due diligence period comes to an end.
A judge has detailed how individuals lent as much as $1.1 million each to former financial adviser Anthony Del Vecchio, only learning when they contacted his employer that nothing had ever been invested.
Having rejected the possibility of an IPO, Mason Stevens’ CEO details why the wealth platform went down the PE route and how it intends to accelerate its growth ambitions in financial advice.
