Commonwealth Financial Planning has complied with ASIC's court enforceable undertaking regarding fees for no service conduct and said it will transition to a new business model.
At the end of May, ASIC received an attestation from Commonwealth Financial Planning signed by the group executive of retail banking Angus Sullivan and a final independent expert report from Ernst & Young.
ASIC is satisfied with the attestation and expert report, meaning compliance with the obligations of the court enforceable undertaking has been satisfied.
However, ASIC said payment of some remaining refunds to clients of Commonwealth Financial Planning are still outstanding - due to be finalised by the end of September this year.
|Sponsored by SSGA SPDR|
2019 and Beyond: Managed Accounts Current and Future Trends
In providing a satisfactory attestation, Commonwealth Financial Planning confirmed it has made material changes to its systems, controls and processes and has implemented a response to the fees for no service conduct.
In January this year Commonwealth Financial Planning was required by ASIC to immediately stop charging or receiving ongoing service fees and not enter into any new ongoing service arrangements with customers.
Now ASIC has confirmed Commonwealth Financial Planning complied with those steps and has satisfactorily shown it will pay back customers who were charged fees for no service.
Commonwealth Financial Planning does not intend to resume charging upfront ongoing service fees and is transitioning to a new model of service.
ASIC said it will continue to monitor Commonwealth Financial Planning as it transitions to the new service model.
The licensee also confirmed it has taken steps to identify and remediate customers to whom Commonwealth Financial Planning had not provided annual reviews in the period between July 2015 and January 2018.
Commonwealth Financial Planning was able to prove to ASIC its systems, processes and controls are now reasonably adequate to track and discharge contractual obligations to its ongoing service customers.