ASIC update on compensation for financial advice related misconduct
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 |