Australia’s five largest banking and financial services institutions have paid a total of $119.7 million in compensation as at 30 June 2019, ASIC has reported in an update.
The compensation was paid to customers who suffered loss or detriment because of non-compliant advice given by financial advisers
This compensation has been paid under review and remediation programs initiated as a result of the ASIC review reported on in Report 515 Financial advice: Review of how large institutions oversee their advisers.
The review, which commenced in July 2015, focused on:
- How AMP, ANZ, CBA, NAB and Westpac identified and dealt with non-compliant advice by their advisers between 1 January 2009 and 30 June 2015
- The development and implementation by these institutions of a framework for the large-scale review and remediation of customers who received non-compliant advice between 1 January 2009 and 30 June 2015
- A review of Australian financial services (AFS) licensees, selected from within the institutions, to test their current processes for monitoring and supervising their advisers
Since the publication of REP 515, ASIC has been monitoring the ongoing implementation and expert assurance of the institutions’ customer review and remediation programs.
ASIC expects further compensation to be paid as the institutions continue their review and remediation programs for non-compliant advice.
