ANZ has paid a total of $10.5 million in compensation to 160,000 OnePath superannuation customers who were affected by compliance breaches.
The $10.5 million compensation bill for ANZ is up from the bank's previous estimate of $4.5 million, and has been paid to 160,000 OnePath superannuation customers.*
ASIC identified a number of breaches in ANZ's OnePath division between 2013 and 2016 that led to an independent review of the business in March 2016.
The review, conducted by PwC, was concluded in December 2016 with ASIC announcing it would be monitoring ANZ as it implemented the recommendations.
ASIC said all recommendations of the review have now been finalised.
The $10.5 million in compensation announced by ASIC today relates to incorrect processing of superannuation contributions and failure to deal with lost inactive member balances correctly.
"ASIC will continue to monitor the breaches reported to us by ANZ until the matters are resolved, including any remediation where appropriate," said ASIC.
A spokesperson for ANZ said that in March 2016 the bank estimated it would reimburse $4.5 million in relation to compliance breaches.
"Following detailed analysis this has increased to $10.5 million impacting 160,000 customers," said the spokesperson.
"While this work is ongoing, we don’t expect the majority of these customers to receive significant further reimbursements.
"As soon as we became aware of issues in 2013 we reported these breaches to ASIC and have fully cooperated with their review of this matter.
"In January 2016 we appointed PwC to conduct an independent compliance review, and reported the findings of that review in December 2016," said the ANZ spokesperson.
*Correction: A previous version of this article incorrectly stated that ANZ had paid an additional $10.5 million to OnePath customers (on top of the original estimate of $4.5 million). In fact, $10.5 million is the total amount of compensation.
APRA will soon be handing down new prudential standards around remuneration following the damning results of an inquiry into 36 of Australia...
EXCLUSIVE Now that he’s secured his leadership, Prime Minister Scott Morrison has a major opportunity to secure the future viability of t...
A report from prudential regulator has found that CBA is not the only institution that suffers from an ill-defined culture and hazy account...