A 2017 report by ASIC into how the big banks and AMP oversee financial advisers has netted less than $120 million in remediation to date.
AMP, ANZ, Commonwealth Bank, NAB and Westpac have paid a total of $119.7 million [see figure 1] in remediation for poor financial advice since the corporate regulator began reviewing how the institutions identified and dealt with non-compliant advice between 1 January 2009 and 30 June 2015.
According to the entities - which reported their progress to the corporate regulator - the equivalent of more than 810 full-time staff were working away at financial advice remediation relating to ASIC report 515, separate to any other advice review and remediation programs underway at the big banks.
Weighing in with the largest advice remediation bill, NAB currently has the equivalent of 573 full-time staff working on its program of remediation, with the bank not expecting to clear its compensation bill until December 2022.
As part of the review, ASIC noted a single adviser from NAB was responsible for more than $14 million in compensation to customers for conduct commenced before 1 January 2009. This amount is not included in the total shown in the table.
By June 30 this year, NAB had paid more than $32 million to 1032 customers affected by the poor advice of 81 financial advisers.
CBA paid the lowest amount of remediation and had the equivalent of only 1.5 full-time staff working on remediation from report 515, though ASIC noted the program was due for completion within the next three months.
ASIC said the 1.5 full-time equivalent staff resource figure was provided by Commonwealth Securities, with Commonwealth Private, Commonwealth Financial Planning, Financial Wisdom and Count Financial reporting no staff were working on the program. All CBA entities except Commonwealth Securities and Commonwealth Private reported their remediation programs would be complete by August 31.
ASIC added CBA's $9,269,005 in report 515 remediation did not include amounts paid by CBA under other large-scale advice review programs.