• subs-bellGet the latest news! Subscribe to the ifa bulletin

BoQ ramps up compliance review

The Bank of Queensland has agreed to expand the scope of a review into its compliance procedure, after a number of cases of overcharging customers were brought to ASIC’s attention.

Responding to a request from the corporate regulator, the bank has agreed to extend the scope of the independent review, which followed a $12 million customer error related to a system issue reported to ASIC last year.

In August 2013, BoQ self-reported a number of additional errors dating back to 2004 which resulted in customers being either over-charged or underpaid interest. 

As well as extending the scope of the review to help rectify the losses, BoQ has also agreed to refund an additional $34.5 million and pay another $11.5 million to fix these additional errors.

It is estimated that approximately 46,000 customers have been affected by the errors.

“We want to make sure the expert’s review leaves no stone unturned and all customers are appropriately compensated,” said ASIC deputy chairman Peter Kell.

“The review will also ensure that any necessary compliance system improvements are made to minimise the occurrence of similar errors in future.”