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
- 15 Nov 2018We’ll lose advisers through FASEA but it’s necessaryBy Adrian Flores
- 15 Nov 2018ASIC flexes its muscles at independent advisersBy James Mitchell
- 15 Nov 2018FPA hands down $50,000 fine on Sam HendersonBy Adrian Flores
- 15 Nov 2018Adviser reviews critical to client retentionBy Adrian Flores
- 14 Nov 2018ASIC bans financial services representativeBy Eliot Hastie
- 14 Nov 2018Fintech should make advice ‘enjoyable’By Adrian Flores
- view all