Invest
Financial institutions cough up $749.7m compensation
Nearly $750 million has been paid or offered to individuals who have suffered loss or detriment because of non-compliant advice and fees for no service since ASIC undertook major reviews in 2015.
Financial institutions cough up $749.7m compensation
Nearly $750 million has been paid or offered to individuals who have suffered loss or detriment because of non-compliant advice and fees for no service since ASIC undertook major reviews in 2015.
AMP, ANZ, CBA, Macquarie, NAB and Westpac have all been part of the review and remediation programs.
The reviews looked into how effectively the institutions supervised their financial advisers to identify and deal with non-compliant advice, as well as the extent of institutional failure to deliver ongoing advice services to financial advice customers who were paying fees to receive those services.
How has your financial services provider fared?
AMP
As at 31 December 2019, AMP had paid out $26,654,023 in compensation to 1,987 individuals for non-compliant advice.
It had also forked out $140,459,870 to 193,167 for misconduct associated with fees for no service.
ANZ
According to ASIC, ANZ has spent $36,205,259 on compensating 1,777 customers for non-compliant advice.
It’s also offered up $59,415,383 to 21,184 people who have suffered through fees for no service.
CBA
A total of 628 Commonwealth Bank customers have been compensated $9,386,454 for the provision of non-compliant advice.
The bank has also made efforts to compensate more than 50,000 customers for fees for no service misconduct: 50,576 individuals sharing in $164,846,374 compensation.
Macquarie
Macquarie’s data set is incomplete – ASIC noted that it had accepted an enforceable undertaking in January 2013 from a subsidiary of Macquarie Group that would see it undertaking work “largely consistent with the aims of ASIC’s review”.
As at June 2017, the financial institution had paid approximately $24.7 million in compensation to 263 clients.
It’s also paid out (or offered) $2,583,645 to 734 customers for fees for no service misconduct.
NAB
By far capturing the largest number of customers, NAB has had to spend $39,944,208 to compensate 1,294 customers who suffered through non-compliant advice.
It has also offered remediation to a whopping 586,961 individuals who suffered through fees for no service misconduct – to the value of $163,862,768.
Westpac
The big four bank has remediated 1,365 individuals to the value of $29,680,142 for non-compliant advice practices.
A further 19,441 customers have been offered compensation to the value of $76,686,356.
All up, 7,051 customers have been compensated $141,870,086 for non-compliant advice.
A further 872,063 individuals have been compensated or offered $607,854,395 for misconduct related to fees for no service.
About the author
About the author
Advice
Study reveals the financial value of stay-at-home parents across the globe
A new index created by beikecelltherapy.com, a stem cell therapy expert, has quantified the time stay-at-home parents dedicate to their role and calculated the cost of outsourcing their tasks in 80 ...Read more
Advice
Securing success: Top real estate investment courses in Australia
Real estate investment in Australia offers a pathway to financial growth and stability, attracting both novice and seasoned investors. Read more
Advice
Navigating the path to citizenship: Real estate investment visa in Australia
Australia's robust economy, high standard of living, and vibrant culture make it an attractive destination for many seeking a new home. Read more
Advice
Email phishing attacks skyrocket due to ChatGPT's influence, experts warn
The rise of Generative AI technologies like ChatGPT has been met with a dramatic increase in cyber threats, particularly in the realm of email phishing attacks. Read more
Advice
Real estate investment for foreigners: A guide to investing in Australian property
Investing in Australian real estate presents a lucrative opportunity for foreign investors, offering a stable and growing market with potential for high returns. Read more
Advice
Smart investing: Using a real estate investment calculator for Australian properties
In the dynamic world of Australian real estate, making informed investment decisions is paramount. Read more
Advice
Choosing between bonds and equities: What’s best for you?
Investing can be a daunting task, especially when faced with the myriad of options available. Two of the most common asset classes are bonds and equities, both with their own unique characteristics ...Read more
Advice
Macquarie responds to ASIC's Federal Court proceedings
The bank has responded to civil penalty proceedings commenced by ASIC. Read more
Advice
Study reveals the financial value of stay-at-home parents across the globe
A new index created by beikecelltherapy.com, a stem cell therapy expert, has quantified the time stay-at-home parents dedicate to their role and calculated the cost of outsourcing their tasks in 80 ...Read more
Advice
Securing success: Top real estate investment courses in Australia
Real estate investment in Australia offers a pathway to financial growth and stability, attracting both novice and seasoned investors. Read more
Advice
Navigating the path to citizenship: Real estate investment visa in Australia
Australia's robust economy, high standard of living, and vibrant culture make it an attractive destination for many seeking a new home. Read more
Advice
Email phishing attacks skyrocket due to ChatGPT's influence, experts warn
The rise of Generative AI technologies like ChatGPT has been met with a dramatic increase in cyber threats, particularly in the realm of email phishing attacks. Read more
Advice
Real estate investment for foreigners: A guide to investing in Australian property
Investing in Australian real estate presents a lucrative opportunity for foreign investors, offering a stable and growing market with potential for high returns. Read more
Advice
Smart investing: Using a real estate investment calculator for Australian properties
In the dynamic world of Australian real estate, making informed investment decisions is paramount. Read more
Advice
Choosing between bonds and equities: What’s best for you?
Investing can be a daunting task, especially when faced with the myriad of options available. Two of the most common asset classes are bonds and equities, both with their own unique characteristics ...Read more
Advice
Macquarie responds to ASIC's Federal Court proceedings
The bank has responded to civil penalty proceedings commenced by ASIC. Read more