Final ASIC Update: Compensation For Financial Advice-Related Misconduct
Australia’s largest banks have compensated customers with $4.7 billion for misconduct related to financial advice. The compensation addresses fees for no service and non-compliant advice.
Six of Australia’s largest banking and financial services institutions have paid or offered a total of $4.7 billion in compensation, as of 31 December 2022. Compensation has been offered to customers who suffered loss or detriment because of fees for no service misconduct or non-compliant advice.
This is the third and final update on the compensation from the Australian bank series. Previous updates include $3.6 Billion in Compensation Available From Banks and $1.6 Billion Still Available in Remediation for Millions of Aussies.
AMP, ANZ Bank, Commonwealth Bank, Macquarie Bank, National Australia Bank and Westpac Bank (the institutions) undertook the review and remediation programs to compensate affected customers as a result of two major ASIC reviews. The reviews looked into:
- the extent of failure by the institutions to deliver ongoing advice services to financial advice customers who were paying fees to receive those services.
- how effectively the institutions supervised their financial advisers to identify and deal with ‘non-compliant advice’ – 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.
‘ASIC compensation for financial advice-related misconduct project has shone a light on the advice fees that customers are paying and the services they should be receiving in return,’ said Commissioner Danielle Press. ‘The subsequent programs have resulted in very significant remediation payments to affected consumers.’
ASIC anticipates this will be the final update on compensation because most of these programs are substantially complete.
The table below provides a breakdown of the compensation payments made or offered by the institution as of 31 December 2022.
Breakdown of the Compensation
Legal Help After Bad Financial Advice
If you believe you’ve received bad financial advice and would like to discuss your experience with us, reach out to our expert legal team. We are committed to ensuring our clients receive the best possible advice and guidance on their situation, especially in financial matters. You can contact us online, call us at 1300 433 533 or email us at enquiry@fdlegal.com.au.
