CBA says most customers received appropriate advice
Tuesday, 2 February 2016 12:38pm

The fourth update on CBA's Open Advice Review has been released, which the bank said is evidence that the "majority of customers" assessed so far received appropriate advice.

The report, prepared by Promontory Financial Group, is based on the nearly 2,000 assessments completed by 31 December 2015; of that number, 171 offers of compensation (amounting to $2.9 million) were made.

Since the review's inception the program has received 23,221 expressions of interest; 9,346 were formally admitted and 810 have since "exited" (none of which have since launched legal action against CBA).

Promotory's report said that the amount of cases reviewed demonstrates a "marked acceleration" during the period from September 1 to December 31; specifically, the report indicated a 162% increase in issued assessments compared to the previous four-month period.

With regards to the 171 offers of compensation, 122 were deemed to stem from "poor or incorrectly implemented advice" resulting in financial loss and 49 were the result of misapplication of fees.

"We believe that the bank is continuing to apply the program's processes in a manner that is materially consistent with the program's objectives," Promontory said.

"While there were a number of cases we identified in this current period where the bank's assessment did not fully adhere to the program's documented processes ... in our opinion none of these exceptions represented serious or intentional failings to assess poor advice."

Commenting on the release, CBA executive general manager Advice Review program Leif Gamertsfelder said: "This report outlines the progress we have made in the program to deliver assessments in a thorough, fair and consistent way, which is our priority.

"The report shows that our investment in building the program's infrastructure has increased our capacity to assess advice, and deliver on our commitment to do the right thing by customers."

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