CommFP remediation transcends client migration
The Commonwealth Bank has taken another step in its Open Advice Review program, writing 350,000 letters to Commonwealth Financial Planning (CommFP) clients who were advised over a more than eight year period offering them access to a review, even if they have switched advisers.
The big banking group has told Money Management that the letters are being sent to clients who were customers of CommFP between 1 September 2003 and 1 July 2012.
The mail-out represents fulfilment of an undertaking announced by the Commonwealth Bank in November last year as part of its remediation process flowing from the provision of inappropriate advice by advisers employed within CommFP which, in turn, led to an enforceable undertaking imposed by the Australian Securities and Investments Commission and later scruinty by a Senate Committee inquiry.
The bank is acknowledging its obligation to former customers who have switched advisers or advice groups, stating that they are entitled to receive a review of the advice they received while customers of CommFP.
"If the letter raises questions for customers and they speak with their current adviser, their adviser should tell the customer to contact the program for more information," the bank spokesperson said.
"The letter makes it clear that the opportunity to participate in the program relates to the advice they received from Commonwealth Financial Planning."
Recommended for you
The FSCP has announced its latest verdict, suspending an adviser’s registration for failing to comply with his obligations when providing advice to three clients.
Having sold Madison to Infocus earlier this year, Clime has now set up a new financial advice licensee with eight advisers.
With licensees such as Insignia looking to AI for advice efficiencies, they are being urged to write clear AI policies as soon as possible to prevent a “Wild West” of providers being used by their practices.
Iress has revealed the number of clients per adviser that top advice firms serve, as well as how many client meetings they conduct each week.
