The first of the independent reports into licence conditions placed on the CBA’s licensees has found “deficiencies” in the bank’s original $52 million client compensation project.
Yesterday, ASIC released the findings of the first of three reports which the regulator has commissioned KordaMentha Forensic to undertake following ASIC's decision to place conditions on the bank’s advice AFSLs last year.
“The report confirms the inconsistency and deficiencies of an original $52 million compensation scheme,” a statement from ASIC said.
“These shortcomings, which disadvantaged some customers, led to ASIC imposing new Australian financial services licence conditions on [Commonwealth Financial Planning (CFPL) and Financial Wisdom (FWL)] in 2014," it said.
As a result, almost 3,000 former clients of CBA licensees Financial Wisdom and Commonwealth Financial Planning will be offered $5,000 and an independent review of advice provided.
KordaMentha Forensic is also due to release another two reports to ASIC. The second report will assess whether Commonwealth Financial Planning and Financial Wisdom had a reasonable basis for identifying the clients and advisers for the original compensation scheme.
"If KordaMentha Forensic finds that other clients or advisers should have been captured, CFPL and FWL will be required to rectify this," ASIC said.
SUBSCRIBE TO THE IFA DAILY BULLETIN
- 10:13Westpac announces exit from financial adviceBy Adrian Flores
- 09:32ASIC given greater powers under new proposalBy Adrian Flores
- 09:32FPA releases national roadshow detailsBy Adrian Flores
- 18 Mar 2019Linchpin Capital, IIOF fund to be shut downBy Adrian Flores
- 18 Mar 2019FASEA releases final provider accreditation policyBy Adrian Flores
- 15 Mar 2019Adviser given 10-year prison sentence by NSW courtBy Adrian Flores
- view all