Commonwealth Bank Refunds More than A$100 Million for Charging Fees without Financial Advisory Services
One of Australia’s largest bank, Commonwealth Bank (CBA), has been charging clients for no financial advisory services. The bank has since refunded more than A$100 million to its clients that who were charged fees for no services between 2007 to 2015.
” Commonwealth Bank Refunds More than A$100 Million for Charging Fees without Financial Advisory Services “
Commonwealth Bank did not report the illegal behaviour under the Corporations Act to the industry regulator, the Australian Securities and Investments Commission (ASIC) only until 2014. The bank
reported clients of its’ business subsidiaries, Commonwealth Financial Planning Limited (CFPL) and BW Financial Advice Limited (BWFA), did not receive annual reviews as part of the financial advice service package they paid for. In one inquiry, one financial advisor in its subsidiary, Count Financial, knew the bank was charging A$1,000 in service fees in 2015, despite the client having died in 2004.
After the self-reporting, the bank worked with Deloitte and EY, to develop and implement a comprehensive Advice Fee Refund program covering the period 2007 to 2015, which involved reviewing approximately 62,000 customer files and making payments of approximately $88 million (plus interest) to affected customers. In November 2017, the Australian government had commenced inquiries into banking, pension and financial services industries, after a series of scandals.
About Commonwealth Bank of Australia
Commonwealth Bank of Australia is Australia’s leading provider of integrated financial services, including retail, premium, business and institutional banking, funds management, superannuation, insurance, investment and share-broking products and services.
Visit: Commonwealth Bank
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