Big banks pay out millions for fees-for-no-service

AMP, ANZ, CBA, Macquarie, NAB and Westpac have paid or offered a total of $749.7 million in compensation as at 31 December 2019 to customers who suffered loss or detriment because of non-compliant advice or fees-for-no-service misconduct.

NAB has paid or offered $163,862,768 compensation in total, while CBA has paid or offered $164,846,374. AMP came in third, with $140,459,870 paid or offered.

(source: ASIC)

The reports were released in 2017 and 2016, respectively.

The remediation programs began as a result of two major ASIC reviews in 2015 that examined how effectively institutions supervised their financial advisers and the extent of failure by the institutions to deliver ongoing advice services to customers who were paying fees for no service.