Almost 3,000 former clients of CBA licensees Financial Wisdom and Commonwealth Financial Planning will be offered $5,000 and a review of their advice.
The remediation is a result of the first of three ASIC-commissioned reports into the licence conditions imposed on the two CBA dealer groups by KordaMentha Forensic.
“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.
KordaMenta 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.
“KordaMentha Forensic’s third report will provide an assessment of this work and CFPL and FWL’s compliance with the licence condition program.”
