ASIC has finalised the new licence conditions for CBA dealer groups Commonwealth Financial Planning and Financial Wisdom, setting out the process for compensation for victims of poor advice.
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.
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