The Australian Securities and Investments Commission (ASIC) has revealed that six of Australia’s largest banking and financial services institutions have paid or offered a total of $1.24 billion in compensation, as at 31 December 2020, to customers who suffered loss or detriment because of fees for no service misconduct or non-compliant advice.
This is an additional $193.6 million in compensation payments or offers by the institutions from 1 July to 31 December 2020.
AMP, ANZ, CBA, Macquarie, NAB and Westpac (the institutions) undertook the review and remediation programs to compensate affected customers as a result of two major ASIC reviews commenced the reviews in 2015.
The table below provides a breakdown of the compensation payments made or offered by the institution as at 31 December 2020.
| Institution | Fees for no service misconduct | Non-compliant advice [iii] | ||
|---|---|---|---|---|
| Compensation paid or offered | No. of customers paid or offered compensation | Compensation paid | No. of customers paid compensation | |
| AMP | $153,782,308 | 207,044 | $33,886,311 | 2289 |
| ANZ | $80,571,500 | 29,307 | $43,181,336 | 2066 |
| CBA | $168,287,728 | 56,438 | $9,354,027 | 626 |
| Macquarie | $4,202,000 | 1,038 | – | – |
| NAB | $437,585,419 | 636,205 | $66,816,471 | 1956 |
| Westpac | $199,216,156 | 44,590 | $42,343,152 | 2211 |
| Total | $1,043,645,111 | 974,622 | $195,581,297 | 9148 |
