SEARCH

Big banks pay out millions for fees-for-no-service

BREAKING ASIC has revealed that Australia’s six largest financial institutions have now paid out hundreds of millions to customers impacted by financial advice related misconduct.

AMP, ANZ, CBA, Macquarie, NAB and Westpac have paid or offered a total of $749.7 million in compensation as at 31 December 2019 to customers who suffered loss or detriment because of non-compliant advice or fees-for-no-service misconduct.

NAB has paid or offered $163,862,768 compensation in total, while CBA has paid or offered $164,846,374. AMP came in third, with $140,459,870 paid or offered.


(source: ASIC)

The reports were released in 2017 and 2016, respectively.

The remediation programs began as a result of two major ASIC reviews in 2015 that examined how effectively institutions supervised their financial advisers and the extent of failure by the institutions to deliver ongoing advice services to customers who were paying fees for no service.

Advertisement
Advertisement
Big banks pay out millions for fees-for-no-service
Big four banks
ifa logo

The must-attend event for financial advisers is back in 2022: the ESG Summit, coming to Sydney and Melbourne in February. Walk away with vital knowledge on a number of key ESG areas to help you make informed ESG strategy decisions and to better communicate and integrate the growing ESG space to clients. Visit the website to secure your place.

Subscribe to the ifa bulletin

Receive daily online news,analysis, reports and business strategies
By signing up you agree to our Terms of Use and Privacy Policy

Website Notifications

Get notifications in real time and stay up to date with content that matters to you.