Powered by MOMENTUM MEDIA
subscribe to our newsletter

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."

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.

Advertisement
Advertisement

PROMOTED CONTENT


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 CEO of Aussie Home Loans, James Symond, has forecast that broker market share will hit 70 per cent in the next five years, as more consu...

The Queensland government and lenders have begun offering financial assistance to those affected by Cyclone Niran in Queensland. ...

The technology company has launched a new fund designed to invest in technology scale-ups that are aiming for exponential growth. ...

FROM THE WEB

Join a group of highly informed brokers.

Broker Pulse, a community-driven knowledge base of lender performance Reveal exactly which lenders are making life easiest for brokers and their clients by taking this monthly survey and joining a group of highly informed brokers who leverage these insights every month.

JOIN NOW
podcast

LATEST PODCAST: How the broking industry has evolved - and what's next for Aussie

Do you expect to see strong uptake of the HomeBuilder scheme?

Website Notifications

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