The Commonwealth Bank Group (CBA) has agreed to a multi-million dollar settlement with ASIC in relation to failed financial advisory group, Storm Financial.
Under the agreement, CBA will make available up to an additional $136 million to many of the bank's clients who invested through Storm, including those who participated in the CBA Resolution Scheme, the banking group said in a statement.
"A significant portion of the additional funds has been set aside for customers who did not settle through the Resolution Scheme, including members of the class action brought against the group," the statement said.
"Payments to members of the class action may require further Court orders or directions."
The total of the payments already provided to customers, together with the additional funds to be made available through this agreement, will be in the vicinity of $270 million.
CBA will continue to provide additional support to its customers through hardship assistance, including reduced interest rates, negative equity write offs and debt and interest forgiveness, the statement said.
Commenting on the settlement, CBA's group general counsel David Cohen said: "We are pleased to have reached an agreement with ASIC on this matter as it is in the best interests of our customers to avoid lengthy and uncertain litigation.
"This result delivers certainty to our customers who might otherwise have faced further years of delay before any final litigation result would have been known."
CBA intends to contact "eligible customers" in the coming months regarding their individual circumstances and payments, the statement said.
"This agreement with ASIC has been reached without any admission of liability by the Group," it said.
"Subject to the Federal Court dismissing the action, this brings to a conclusion the proceedings commenced against the Group by ASIC.
"The Group will continue to defend the class action proceedings, which are before the Federal Court in Brisbane. These proceedings involve distinct factual and legal issues."
