Billions in compensation have been paid or offered to customers who suffered loss or detriment due to financial advice-related misconduct, corporate watchdog ASIC has revealed.
AMP, ANZ, CBA, Macquarie, NAB, and Westpac had paid or offered a total of $3.6 billion in compensation as of June 30 to victims of fees-for-no-service misconduct or non-compliant advice after the institutions undertook review and remediation programs as a result of two major ASIC reviews.
ASIC commenced the reviews to determine the extent of failure by the institutions to deliver ongoing advice services to financial advice customers as well as how effectively the institutions supervised their financial advisers to identify and deal with “non-compliant advice.”
Below is the breakdown of the compensation payments made or offered by the institutions as of June 30:
|
|
Fees-for-no-service misconduct
|
Non-compliant advice
|
||
|---|---|---|---|---|
|
Institution
|
Compensation paid or offered
|
No. of customers paid or offered compensation
|
Compensation paid or offered
|
No. of customers paid or offered compensation
|
|
AMP
|
$626,869,836
|
331,994
|
$42,499,477
|
2,842
|
|
ANZ
|
$217,301,375
|
65,489
|
$44,700,475
|
2,123
|
|
CBA
|
$290,579,310
|
144,659
|
$9,354,027
|
626
|
|
Macquarie
|
$4,628,000
|
1,105
|
–
|
–
|
|
NAB
|
$1,247,058,303
|
772,235
|
$104,774,706
|
2,727
|
|
Westpac
|
$942,173,093
|
117,018
|
$58,785,777
|
3,341
|
|
Total
|
$3,328,609,917
|
1,432,500
|
$260,114,462
|
11,659
|
