Commonwealth Bank Refunds More than A$100 Million for Charging Fees without Financial Advisory Services 

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.

Source: CBA, ABC, CTV News, The Guardian

 

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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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Moody’s Downgrades Australia Banks Credit Ratings

Moody’s Downgrades Australia Banks Credit Ratings

Moody’s has cut the long term credit rating of Australia’s four largest banks, saying increasing home pricing, household debt and low wage growth is posing a threat to lenders. ANZ, NAB, Westpac and Commonwealth Bank of Australia has been downgraded from Aa2 to Aa3. The ratings outlook for all four banks still remain stable.

“ANZ, NAB, Westpac and Commonwealth Bank of Australia has been downgraded from Aa2 to Aa3.”

~ Bloomberg

It comes after Standard & Poor’s recently left the banks’ credit ratings untouched as it downgraded smaller lenders. The combination of soaring house prices and stagnant wage growth has pushed the ratio of household debt to disposable income to 189 percent.

Related Reports: Bloomberg, Sydney Morning Herald


The Wealth Insider is the world’s leading wealth intelligence for global wealth managers, investments managers, asset managers, high net-worth service providers and wealthy individuals.  Our global workforce seamlessly present the inside news of the most relevant news, insights, global wealth trends, innovation & digital transformation to our global audience.

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Australian’s Westpac Clamps Down on Mortgage Lending to Foreigners

Australian’s Westpac Clamps Down on Mortgage Lending to Foreigners

Westpac is clamping down on mortgage lending to foreigners as concerns about the health of the nation’s housing market rise. Westpac Banking Corp will no longer lend to offshore customers who aren’t citizens or don hold appropriate residency visas. Commonwealth Bank of Australia, National Australia Bank Ltd. and Australia & New Zealand Banking Group Ltd have all tightened funding to overseas customers.

“ 55 percent jump in home prices across the nation’s capital cities in the past seven years ”

~ Bloomberg

The changes made by the biggest banks in the country are part of a broader scrutiny of foreign buying of Australian homes, which has helped drive a 55 percent jump in home prices across the nation’s capital cities in the past seven years

Related Reports: Bloomberg, Australian Financial Review, Reuters

 

About Westpac

Westpac Group’s portfolio of financial services brands and businesses is focused on our vision to be one of the World’s great service companies, helping our customers, communities and people to prosper and grow. From ensuring consumer customers can save and invest with confidence, to serving the financial needs of multi-national corporate, institutional and government clients, we put our customers at the centre of everything we do.

In supporting our vision, our structure is designed to accelerate the Group’s customer focused strategy by better aligning our business with key customer segments.  The structure involves 5 key divisions including:  Consumer Bank, Commercial and Business Bank, BT Financial Group, Westpac Institutional Bank and Westpac New Zealand.  Through these 5 divisions we serve over 13 million customers.

Visit: Westpac


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