Prime Access bungle costs ANZ $50 million

ANZ bank has entered an enforceable agreement with ASIC and has footed a $50 million compensation bill as it puts the lid on its Prime Access compliance bungle.

Back in 2015, an investigation by the corporate regulator revealed the bank had failed to provide documented annual reviews to more than 10,000 'Prime Access' customers in the period from 2006 to 2013.

As a part of its enforceable agreement announced today, ANZ senior management will file audited attestations to ASIC giving it 'reasonable assurance' that the bank has provided review documents to its clients since 2014.

"We acknowledge we did not meet customers' expectations by not providing them the services we promised. We have since introduced measures to prevent this from happening again and have largely completed making remediation payments to impacted clients," ANZ wealth Australia group executive Alexis George said.

ANZ bosses will also have to provide ASIC audited information on the improvements it has made in its compliance systems and processes.

An independent expert will be appointed for this, ANZ said.

The bank started compensating its Prime Access clients in 2015. At the time, it estimated a $30 million cost to reimburse 8500 clients.

This bill has swollen to $46.8 million as at February 2018 but the compensation program is nearing completion, ASIC said.

ASIC, today, also ordered the bank to pay $3 million to not-for-profit community organisations, taking its compensation bill to about $50 million, without the legal costs.

Read more: ANZASICPrimeAlexis George
Link to something GBaIZKnU