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ASIC takes action against CBA dealer groups

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.