CBA compensation scheme closes to registrations

CBA compensation scheme closes to registrations

Registrations for the Commonwealth Bank's Open Advice Review program closed last Friday, but some applicants may not see their claims assessed until the end of 2016.

It has been a year since Commonwealth Bank chief executive Ian Narev opened the scheme, which aims to compensate victims who lost money via its financial planning arm.

Since then, more than 22,000 customers have expressed an interest, with around 7,000 confirming they would like their financial advice reviewed.

However, a CBA spokesperson told ifa that customers may not see their claims resolved this year.

"We expect it will take all of this year and most of 2016 to complete the assessments," the spokesperson said.

"We know from our experience, and ASIC reviews of our past remediation processes, the importance of putting in place an approach that is well planned, rigorous and fair."

The spokesperson said the remediation payments would take into account the time taken to complete the assessment.

According to the bank, at the end of April 2015 it had offered more than $500,000 in compensation to registered clients.

Promontory Financial Group was appointed as the independent expert overseeing the Open Advice Review program. Promontory delivers reports every four months on how the program is developing, the systems and processes being implemented and details all activity within the program.

Its most recent report was released on 29 May 2015.

 

CBA compensation scheme closes to registrations
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