Powered by MOMENTUM MEDIA
subscribe to our newsletter
CBA to review advice failures

CBA to review advice failures

CBA chief Ian Narev has announced an ‘open review program’ to investigate the advice failures at CBA dealer groups Commonwealth Financial Planning and Financial Wisdom.

In a statement yesterday, Mr Narev said the new “far reaching program of review” will demonstrate the bank’s commitment to remediation and will have “no cost to customers”.

"Poor advice provided by some of our advisers between 2003 to 2012 caused financial loss and distress and I am truly sorry for that," Mr Narev said. "We know this is unacceptable and I unreservedly apologise to all customers affected."

Advertisement
Advertisement

The aim of the bank’s compensation program will be to “put customers back in the position they would have been had they received suitable advice” as well as addressing concerns raised during the Senate Committee’s inquiry.

The program will include a dedicated hotline for former clients and an opportunity for an assessment of any advice received during the relevant period – to be conducted by a “specialist Commonwealth Bank team" and followed up by an audit by an “independent customer advocate” funded by the bank.

There will also be an additional panel for customers who are not satisfied by the results of an assessment, which will be binding on the bank.

Mr Narev reminded stakeholders that aggrieved clients will still have the option of taking the matter to the Financial Ombudsman Service.

 

CBA to review advice failures
mortgagebusiness

 

Latest News

The prudential regulator is looking at revising its guidance on the serviceability assessments that banks perform on residential mortgage ...

The property industry has welcomed the re-election of the Coalition government, declaring that concerns over the opposition’s proposed cha...

BNK bank has reported home lending growth via both its direct and third-party mortgage businesses. ...

FROM THE WEB
podcast

LATEST PODCAST: How the mortgage sector will be impacted by the federal election

Do you think the banking royal commission recommendations could negatively impact competition in the mortgage market?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.