ASIC has announced it will impose licence conditions on CBA-aligned licensees Financial Wisdom and Commonwealth Financial Planning as part of the compensation process for aggrieved former clients.
"The conditions will require both businesses to undertake significant further work in relation to the compensation process for customers and will put in place independent monitoring of that work," said an ASIC statement.
"ASIC is taking this action after CBA informed ASIC that the original process developed to compensate customers of two former CFPL advisers was not applied consistently across all impacted customers of the two businesses. This inconsistency disadvantaged some customers."
ASIC chairman Greg Medcraft said the new conditions are in response to inconsistencies regarding the compensation offered to some former clients of CBA-aligned advisers.
"Measures were implemented in relation to customers of two former advisers within CFPL – Don Nguyen and Anthony Awkar," Mr Medcraft said.
"However, they were not applied to customers of other former CFPL and FWL advisers, about whom there had been concerns.
SUBSCRIBE TO THE IFA DAILY BULLETIN
- 20 Jul 2018CPA shuts financial advice divisionBy Reporter
- 20 Jul 2018Don't neglect AI, advisers warnedBy Tim Stewart
- 19 Jul 2018AMP unveils new in-house training programBy Reporter
- 19 Jul 2018Self-licensed adviser cops 4-year ASIC banBy Reporter
- 19 Jul 2018Hub24 to launch new core offeringBy Reporter
- 19 Jul 2018SMSF sector warns about advice ‘exodus’By Miranda Brownlee
- view all