ANZ sets over $300m aside to address advice failures

ANZ has announced more than $300 million will be set aside for refunds to customers and related remediation costs, including those receiving inappropriate advice.

The remediation costs relate to issues that have been identified from reviews to date and remain ongoing, ANZ said in a statement.

It said approximated 57 per cent of that $374 million relates to customer refunds impacting revenue, with the balance relating to remediation costs recorded as an expense.

The total remediation charge is split approximately 66 per cent/34 per cent between continuing and discontinued operations.

ANZ noted key items of customer remediation include:

  • Compensating customers for issues arising from product review in the Australia division
  • Compensation for customers receiving inappropriate advice for services not provided within ANZ’s former aligned dealer groups.

ANZ will announce its full results on 31 October.

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ANZ sets over $300m aside to address advice failures
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Adrian Flores

Adrian Flores

Adrian Flores is a deputy editor at Momentum Media, focusing mainly on banking, wealth management and financial services. He has also written for Public Accountant, Accountants Daily and The CEO Magazine.

You can contact him on [email protected].

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