Major banks pay back customers $215.9m
AMP, ANZ, the Commonwealth Bank of Australia (CBA), National Australia Bank (NAB) and Westpac Corporation have now paid or offered customers $215.9 million of an estimated $219.5 million in refunds and interest for failing to provide general or personal advice to customers while charging them ongoing advice fees.
According to the Australian Securities and Investments Commission (ASIC) update on financial advice institutions fees-for-no-service refund programs, there was an additional $155 million in payments and offers since the ASIC’s latest public update which provided compensation figures as at 21 April.
Also, the institutions’ total estimates changed over the past six months as they had investigated the compensation required and in some cases had identified new failures.
ASIC said it would continue to monitor the institutions’ compensation programs and supervise the institutions’ further reviews to determine whether any additional instances of fees had been charged without advice being provided.
The next public update would be provided in mid-2018.
AUTHOR
Oksana Patron
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.
