According to a statement from the corporate regulator issued today, “the conditions are designed to ensure that the customers whose advice was reviewed by the AFS licensees under a past remediation program are:
- contacted by the relevant AFS licensee with an assessment of the advice they received and an offer of a further review
- offered up to $5,000 to assist with obtaining their own financial or legal advice to assess the original review of their advice and any compensation offer, and
- given the ability to have their matter assessed by the Financial Ombudsman Scheme (FOS), with both AFS licensees agreeing to waive any limitation period or claim threshold that would normally apply to FOS matters.”
The move signals the completion of the process announced by ASIC in May, when it first announced it would be taking action against the two bank-owned licensees.
CBA also issued a statement explaining the bank has now “finalised variations to the AFSL licence conditions” for the two dealer groups.
“[Commonwealth FP] is now a significantly transformed business,” the statement said.
More to come.
Seems reasonable but isn’t prevention better than the cure. This should have been addressed long ago. I wonder if anything will change. History tells me not likely. I love this industry but a little tired of the greed some of us have. It should be a privilege and honour to have a client pay for our advice and opinion to usually help manage most of what they have worked their life for. We get paid reasonably well for it. Isn’t this enough.