CBA advice compensation reaches $29m

The amount of compensation offered to Commonwealth Bank financial planning customers has reached $29 million, according to the seventh and final Promontory report into the Open Advice Review Program.

Of that amount, $22.9 million has been paid so far to 1641 cases. CBA indicated to Promontory that it intended to finalise these payments over the next few months, and that the vast majority of cases will be closed by the end of the year.

Of the 10,128 registered since the program's launch in 2014, 8654 have had outcomes issued. So far, the bank has determined that 73.1% cases assessed received appropriate advice; 7.1% involved poor or incorrectly implemented advice that did not lead to financial loss for customers; 14.1% received poor advice that resulted in financial loss for customers; and 5.7% involved incorrect charging of fees with no other financial loss attributed to advice.

Overall Promontory determined that CBA's remediation program has been "delivered in line with its objectives." Promontory noted CBA's careful development of assessment processes; the ability for customers to access their files and have outcomes explained; the implementation of multiple layers of independence; the general quality of sample case reviews; and transparency with respect to CBA's regular reporting to Promontory.

Commenting on Promontory's final report, CBA executive general manager Leif Gamertsfelder said: "The report confirms that the program is reaching its final stages. Reviews were completed and issued to customers early this year and the vast majority of cases have now been finalised."

He added: "We continue to make sure our dedicated team is available to assist customers or their independent customer advocate to answer any questions about the cases that are currently being finalised."

Read more: CBACommonwealth BankOpen Advice Review ProgramOverall PromontoryLeif Gamertsfelder
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