Ten per cent of the advice reviewed as part of CBA’s Open Advice Review process has been found to be inappropriate, according to CBA.
Appearing before the Standing Committee on Economics inquiry into the major banks yesterday, CBA chief executive Ian Narev said 90 per cent of the 6,000 pieces of advice reviewed by the bank have been found to be "correct".
As part of its Open Advice Review program, CBA invited people who were clients of Commonwealth Financial Planning and Financial Wisdom between 1 September 2003 and 1 July 2012 the opportunity to have their advice reviewed.
Of the 8,000 clients who requested a review of their advice, 6,000 have had reviews completed.
"So far we've seen that nearly 90 per cent of those cases the advice was proven to be correct but we've paid an additional $11 million in relation to other claims," Mr Narev said.
Responding to questioning by Standing Committee on Economics chair and Liberal MP David Coleman, Mr Narev acknowledged that CBA should have responded more quickly to allegations of poor advice practices.
"We did not act with the requisite speed many years ago and even in more recent years on the financial advice matters," he said.
Mr Narev was also asked about its review of practices within CommInsure following allegations of poor claims handling in March 2016.
Labor MP Pat Conroy asked Mr Narev if any CommInsure staff had been terminated as a result of the allegations.
"There are certainly individuals where we know enough about them that they’ve had some consequences related to remuneration but at this stage we have not had individuals terminated because of this because we’ve not seen the need to do that," Mr Narev said.
The committee's hearings into the major banks continues this morning with the appearance of ANZ chief executive Shayne Elliott.
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