We're appropriately indemnified declares Countplus
Countplus has told the market it is appropriately indemnified by the Commonwealth Bank for any further increases in remediation costs covering Count Financial.
Following the Commonwealth Bank’s (CBA’s) announcement that it had increased the provision for remediation for the historical conduct of its financial advice businesses, including Count Financial, Countplus formally declared it was sufficiently indemnified.
It said that based on information provided by the Commonwealth Bank, the Count Financial remediation provision had been revised from $195 million up to $220 million.
However, it said this was within the $300 million indemnity provided by the Commonwealth Bank to Countplus.
“At the time of the acquisition of Count Financial by Countplus on 1 October 2019, CBA provided an indemnity of $200 million to Countplus to cover remediation of certain conduct,” the ASX announcement said. “On 30 July 2020, Countplus reported to the market that Countplus and CBA had entered into an agreement to increase the indemnity to $300 million.”
It said the potential for further increases to the indemnity remained subject to certain triggers relating to the failure rate of fee for no service and inappropriate advice.
Recommended for you
Sequoia Financial Group has declined by five financial advisers in the past week, four of whom have opened up a new AFSL, according to Wealth Data.
Insignia Financial chief executive Scott Hartley has detailed whether the firm will be selecting an exclusive bidder for the second phase of due diligence as it awaits revised bids from three private equity players.
Insignia Financial has reported a statutory net loss after tax of $17 million in its first half results, although the firm has noted cost optimisation means this is an improvement from a $50 million loss last year.
With alternative funds being described as “impossible” for fund managers to target towards advisers without the support of BDMs for education, Money Management explores the evolving nature of the distribution role.
