First State, YBR accused of 'fees for no service'
In providing evidence to the Royal Commission hearings today, ASIC deputy chair Peter Kell has revealed allegations of 'fees for no service' have been made against Yellow Brick Road, Bendigo Bank and not-for-profit super fund First State Super, in addition to the big four banks.
Speaking before the commission, Mr Kell said there were "eight entities", some of which may have more licensees under their umbrella, which have engaged in 'fees for no service'.
In a statement issued following the revelation, First State Super said the misconduct related to its StatePlus financial advice subsidiary.
"Financial advice company StatePlus has apologised for an oversight that resulted in some clients being charged a fee for an annual review they did not receive," the statement said.
Bendigo and Adelaide Bank also issued a statement acknowledging Mr Kell's testimony.
"The Bank disclosed this issue in its submission to the Royal Commission and continues to work closely with ASIC to agree the appropriate remediation actions," the statement said.
YBR did not respond to requests for comment.
Follow the royal commission financial advice hearings live with ifa here: https://www.ifa.com.au/strategy/25404-royal-commission-financial-advice-hearings-live-blog
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