Financial institutions cough up $749.7m compensation
Nearly $750 million has been paid or offered to individuals who have suffered loss or detriment because of non-compliant advice and fees for no service since ASIC undertook major reviews in 2015.
AMP, ANZ, CBA, Macquarie, NAB and Westpac have all been part of the review and remediation programs.
The reviews looked into how effectively the institutions supervised their financial advisers to identify and deal with non-compliant advice, as well as the extent of institutional failure to deliver ongoing advice services to financial advice customers who were paying fees to receive those services.
How has your financial services provider fared?
AMP
As at 31 December 2019, AMP had paid out $26,654,023 in compensation to 1,987 individuals for non-compliant advice.
It had also forked out $140,459,870 to 193,167 for misconduct associated with fees for no service.
ANZ
According to ASIC, ANZ has spent $36,205,259 on compensating 1,777 customers for non-compliant advice.
It’s also offered up $59,415,383 to 21,184 people who have suffered through fees for no service.
CBA
A total of 628 Commonwealth Bank customers have been compensated $9,386,454 for the provision of non-compliant advice.
The bank has also made efforts to compensate more than 50,000 customers for fees for no service misconduct: 50,576 individuals sharing in $164,846,374 compensation.
Macquarie
Macquarie’s data set is incomplete – ASIC noted that it had accepted an enforceable undertaking in January 2013 from a subsidiary of Macquarie Group that would see it undertaking work “largely consistent with the aims of ASIC’s review”.
As at June 2017, the financial institution had paid approximately $24.7 million in compensation to 263 clients.
It’s also paid out (or offered) $2,583,645 to 734 customers for fees for no service misconduct.
NAB
By far capturing the largest number of customers, NAB has had to spend $39,944,208 to compensate 1,294 customers who suffered through non-compliant advice.
It has also offered remediation to a whopping 586,961 individuals who suffered through fees for no service misconduct – to the value of $163,862,768.
Westpac
The big four bank has remediated 1,365 individuals to the value of $29,680,142 for non-compliant advice practices.
A further 19,441 customers have been offered compensation to the value of $76,686,356.
All up, 7,051 customers have been compensated $141,870,086 for non-compliant advice.
A further 872,063 individuals have been compensated or offered $607,854,395 for misconduct related to fees for no service.
