Final CBA compensation report released
Latest News

Final CBA compensation report released

The Commonwealth Bank has released the seventh and final independent report into its compensation scheme for victims of poor financial advice.


According to the final report from Promontory Financial Group, CBA has paid out $23 million to 1,641 cases of poor financial advice. This amount is despite the bank offering $29 million to victims.

The report states that 2,920 cases exited the program after not responding or rejecting the bank’s assessment outcome, while 62 lodged complaints with the Financial Ombudsman Service.

However, there were multiple challenges during the review, including scenarios where the bank could not produce sufficient documentation and evidence for particular cases, the report shows.

There were 10 cases that the independent overseer, Promontory, recognised as failing to adhere to the open advice review program’s documented processes and objectives.

This resulted in some customers receiving an incorrect assessment outcome or inaccurate offer of compensation and so offers of compensation were adjusted by the CBA following these findings.

Since commencing in July 2014, the compensation scheme has received 10,128 registrations from customers claiming to have received poor financial advice in the period between 1 September 2003 and 1 July 2012.

In 5,573 cases, CBA found no evidence of poor advice being provided or incorrect fees charged, the report stated. However, 1,076 cases were found to have involved poor advice that resulted in financial loss to the customer.

A further 542 cases were found to have involved poor advice that did not lead to financial loss to the customer and 434 cases were found to have involved incorrect charging of fees that did not cause financial loss to the customer, the report said. CBA is still assessing 936 cases.

Read more:

RBA backs new FX code of conduct

ASIC and AFP investigating bank levy leak

Calastone completes blockchain ‘proof-of-concept’

Netwealth director to reduce shareholding

 

Final CBA compensation report released
investordaily image
ID logo
promoted stories

Appointments

Matt Spence

UniSuper recruits Merill Lynch analysts

Staff Reporter

Robert Brown

ACSA hires former director as CEO

Staff Reporter

Sudhanshu Garg

AMP Capital appoints director in Dubai

Staff Reporter

View all Appointments

Analysis

investordaily image

Why MiFID II matters for Australia

Gary Stone

investordaily image

Five unconstrained fixed income ideas

Nick Gartside

investordaily image

Getting on board the ‘grey nomad’ caravan

Nick Griffin

View all Analysis