Centrepoint Wealth has settled more than $6.7 million worth of client claims in the past six months on behalf of its advisory division, Professional Investment Services (PIS).
The claims impacted cash generation for the advice division, but also represented a decrease in claims for the half year, Centrepoint Alliance said in its half year report.
"One area which has received considerable attention has been the management and resolution of client claims," the company said.
"Resources both internal and external continue to be applied to resolving existing claims and improving the management of new ones. The vast majority of existing and new claims emanate from advice provided in 2008 and prior."
As well as addressing client claims, the company has made progress in relation to PIS' enforceable undertaking [EU] with ASIC.
"It is important to note that while the EU has set the timetable for change, it has not set the direction of change, which has been the product of the management's decision that the business should strive to be one of Australia's best advice services businesses," the company said.
"A key component of which is to ensure our advisers have the compliance and quality assurance programmes necessary to ensure that sound advice is provided through a structure that is consistent with all regulatory requirements."
The final Independent Expert Report related to the EU is due to be lodged with ASIC next month.
The changes have been championed by new PIS chief executive Peter Walther who was appointed to the role in August last year.
"Advice revenues were adversely affected during the half year by external economic and regulatory issues," the company said.
The advice division's revenue was also impacted by a number of other factors including adviser losses, it said.
Centrepoint Alliance, the parent company of Centrepoint Wealth, announced profit before tax for the half year to 31 December 2011 of $845,000, with a prior period equivalent loss of $6.1 million.
