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ASIC has released its final report on the major bank’s compliance with financial advice licence conditions, highlighting additional compensation charges.
The Australian Securities and Investments Commission (ASIC) has released KordaMentha Forensic’s final report on CBA’s advice compensation program under its additional Australian Financial Services (AFS) licences conditions imposed by the regulator in 2014.
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The report reveals that CBA has offered a further $2.3 million to 232 clients of the five advisers, in addition to:
- $4.95 million (including interest) offered to customers of different advisers under the licence conditions (reported in KordaMentha Forensic's Compliance Report Parts 1 & 2)
- $1.9 million (including interest) offered to additional customers as a result of CBA’s review outside the licence conditions
ASIC reported that in total, CBA has offered approximately $9.3 million to customers whose advice has been reviewed as a result of the licence conditions.
The final report also provides KordaMentha Forensic’s assessment of compliance by Commonwealth Financial Planning and Financial Wisdom with processes they were required to follow under the licence conditions.
The compliance breaches identified were failures by CBA to meet strict deadlines for providing information to clients.
According to ASIC, CBA subsequently rectified such failures by writing to the clients after the deadlines.
ASIC added that, as a final requirement before it makes a decision on the removal of the additional licence conditions, the boards of directors of Commonwealth Financial Planning and Financial Wisdom must confirm in writing to ASIC that the licensees have complied with the additional conditions.
[Related: ASIC releases update on enforcement of financial misconduct]
