ASIC update on compensation for financial advice related misconduct

In its update released today, ASIC has revealed that six of Australia’s largest banking and financial services institutions paid or offered a total of $749.7 million in compensation, as at 31 December 2019, to customers who suffered loss or detriment because of non-compliant advice or fees for no service (FFNS) misconduct.

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. The regulator commenced the reviews in 2015 to look into:

  • how effectively the institutions supervised their financial advisers to identify and deal with non-compliant advice.
  • the extent of failure by the institutions to deliver ongoing advice services to financial advice customers who were paying fees to receive those services.

The table below provides a breakdown of the compensation payments made or offered by the institution as at 31 December 2019.

Institution

Non-compliant advice 

FFNS misconduct

 

Compensation paid No. of customers paid  compensation Compensation paid or offered No. of customers paid or offered compensation
AMP

$26,654,023

1,987

$140,459,870

193,167

ANZ

$36,205,259

1,777

$59,415,383

21,184

CBA

$9,386,454

628

$164,846,374

50,576

Macquarie

Not applicable

Not applicable

$2,583,645

734

NAB

$39,944,208

1,294

$163,862,768

586,961

Westpac

$29,680,142

1,365

$76,686,356

19,441

Total

$141,870,086

7,051

$607,854,395

872,063