The Australian Securities and Investments Commission has released an update on their work to address financial institutions' and advisers' systemic failures.
The report outlines The Australian Securities and Investments Commission (ASIC) work to ensure customers are fairly compensated. The report is also part of ASIC's Wealth Management Project which is focusing on the conduct of the largest financial advice firms, including the advice arms of AMP, ANZ, CBA, NAB and Westpac groups.
Failure to Deliver
The Australian regulator said that services were not provided either because an adviser was not appointed to them or because the adviser that was appointed to them «failed to deliver on their obligation to provide the ongoing advice service and the licensee failed to ensure that the service was provided.»
ASIC said up to $23.7 million in fee refunds and compensation has already either been paid, or been agreed to be paid, but said that approximately $154 million, plus interest, still needed to be paid, bringing the total compensation for failures to around $178 million plus interest.
The Worst Offender
Of the country's largest banks ASIC highlighted the Commonwealth Bank as the worst offender and it estimates the bank would have to pay customers $105.7 million in compensation, plus interest.
