{"id":51778,"date":"2020-08-25T09:12:37","date_gmt":"2020-08-24T23:12:37","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=51778"},"modified":"2020-08-25T16:48:34","modified_gmt":"2020-08-25T06:48:34","slug":"compensation-for-financial-advice-related-misconduct-tops-1-billion-asic","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2020\/08\/25\/compensation-for-financial-advice-related-misconduct-tops-1-billion-asic\/","title":{"rendered":"Compensation for Financial Advice Related Misconduct Tops $1 Billion &#8211; ASIC"},"content":{"rendered":"<p>Six of Australia&#8217;s largest banking and financial services institutions have paid, or offered, a total of $1.05 billion in compensation, as at 30 June 2020, to customers who suffered loss or detriment because of fees for no service (FFNS) misconduct or non-compliant advice, states ASIC.<\/p>\n<p>A media release from the commission says this is an additional $295.9 million in compensation payments or offers by the institutions from 1 January to 30 June 2020 (also see <a href=\"https:\/\/riskinfo.com.au\/news\/2020\/02\/11\/six-banks-pay-700m-in-compensation-for-financial-advice-related-misconduct-asic\/\" target=\"_blank\" rel=\"noopener noreferrer\">Institutions Pay $750m in Compensation for Financial Advice-Related Misconduct -ASIC<\/a>.)<\/p>\n<p>ASIC says that AMP, ANZ, CBA, Macquarie, NAB and Westpac (the institutions) undertook the review and remediation programs to compensate affected customers as a result of two major ASIC reviews. ASIC commenced the reviews in 2015 to look into:<\/p>\n<ul>\n<li>The extent of failure by the institutions to deliver ongoing advice services to financial advice customers who were paying fees to receive those services.<\/li>\n<li>How effectively the institutions supervised their financial advisers to identify and deal with \u2018non-compliant advice\u2019 \u2013 i.e. personal advice provided to a retail client by an adviser who did not comply with the relevant conduct obligations in the Corporations Act, such as the obligations to give appropriate advice or to act in the best interests of the clients, at the time the advice was given.<\/li>\n<\/ul>\n<p>The ASIC table below provides a breakdown of the compensation payments made or offered by the institution as at 30 June 2020.<\/p>\n<p>&nbsp;<\/p>\n<figure id=\"attachment_51785\" aria-describedby=\"caption-attachment-51785\" style=\"width: 658px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/riskinfo.com.au\/news\/files\/2020\/08\/asic-table-3.png\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-51785\" src=\"https:\/\/riskinfo.com.au\/news\/files\/2020\/08\/asic-table-3.png\" alt=\"\" width=\"658\" height=\"311\" srcset=\"https:\/\/riskinfo.com.au\/news\/files\/2020\/08\/asic-table-3.png 658w, https:\/\/riskinfo.com.au\/news\/files\/2020\/08\/asic-table-3-300x142.png 300w\" sizes=\"auto, (max-width: 658px) 100vw, 658px\" \/><\/a><figcaption id=\"caption-attachment-51785\" class=\"wp-caption-text\">Courtesy of ASIC.<\/figcaption><\/figure>\n<p>The statement from ASIC includes a footnote to the table relating to non-compliant advice noting that:<\/p>\n<ul>\n<li>CBA: At 31 March 2020, CBA notified ASIC that all customers who received inappropriate advice between 1 January 2009 to 30 June 2015 have been remediated in accordance RG 256 <em>Client review and remediation conducted by advice licensees<\/em>.<\/li>\n<li>Macquarie: Macquarie has not been included in this review because ASIC accepted an enforceable undertaking (EU) in January 2013 from Macquarie Equities Limited (MEL), a subsidiary of Macquarie Group. The effect of the EU was for MEL to undertake work that was largely consistent with the aims of ASIC\u2019s review. Under the consequential remediation program, as at June 2017, MEL paid approximately $24.7 million in compensation to 263 clients.<\/li>\n<li>IOOF: In October 2018, IOOF Holdings Limited (IOOF) took ownership of ANZ\u2019s Aligned Dealer Groups (ADGs) comprising Millennium3 Financial Services, RI Advice and Financial Services Partners. IOOF will continue customer review and remediation for non-compliant advice in relation to the ADGs using the same independently assured framework implemented by ANZ.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Six of Australia&#8217;s largest banking and financial services institutions have paid, or offered, a total of $1.05 billion in compensation, as at 30 June 2020, to customers who suffered loss or detriment because of fees for no service (FFNS) misconduct or non-compliant advice, states ASIC. A media release from the commission says this is an [&hellip;]<\/p>\n","protected":false},"author":24,"featured_media":51788,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[],"class_list":{"0":"post-51778","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-compliance-regulation"},"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/51778","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/users\/24"}],"replies":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/comments?post=51778"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/51778\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media\/51788"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=51778"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=51778"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=51778"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}