The Commonwealth Bank's review of its financial planners' poor conduct has only seen five clients receive compensation as of 30 April 2015.
The release of an Promontory Financial Group's second report into the progress of the Open Advice Review reveals CBA has paid $79,702 to five clients.
According to the report – which reviewed a sample of 208 client cases – as of 30 April 2015 the bank has made total compensation offer of $562,513 to clients affected by poor advice, but has only paid five clients.
Of the remaining $482,811 the bank has offered, a total of $248,307 is still under review by the customers and the bank.
The remaining $234,504 has been accepted although it is still yet to be processed by the bank.
Promontory’s report also outlined that six of the 208 client files it reviewed, despite being found to be poor, were not offered compensation because no financial loss was suffered.
The report also stated that 174 client files reviewed were found to be offered “appropriate advice”.
Promontory was appointed by CBA to oversee the Open Advice Review program in August 2014.
CBA said since the initial report released by Promontory in December 2014, it has received an additional 17,774 customers expressing interest in the program, with approximately 7,000 confirming they want their advice reviewed.
APRA chairman Wayne Byres has told banks to prepare for the long haul and warned that the idea that the financial system will return to norm...
RBA governor Philip Lowe has warned that withdrawing the massive fiscal stimulus risks destabilising the recovery at a critical point. ...
The Federal Court of Australia has sided with ASIC over a case concerning an alleged unregistered managed investment scheme and a related co...