Compensation bill hits $750m

Six of Australia's largest banking and financial services institutions have so far paid, or offered, a total of $749.7 million in compensation to customers, according to new data released by ASIC.

The regulator said AMP, ANZ, CBA, Macquarie, NAB and Westpac are the six major institutions who are reimbursing customers who suffered loss or detriment because of non-compliant advice or fees for no service misconduct.

CBA has offered the most in compensation out of the six, coming in at $164.8 million, though the amount paid as at 31 December 2019 is the lowest at around $9.4 million.

NAB has paid close to $40 million out of the $163.8 million paid or offered, the highest amount compared to the other institutions.

AMP has compensated the highest number of effected customers, at almost 2000 out of the 193,167 who have been offered compensation by the company.

ASIC did not reveal all the statistics for Macquarie due to an agreed enforceable undertaking between the two parties allowing Macquarie Equities to undertake work that was "largely consistent" with ASIC's review.

ASIC commenced the review into the remediation programs in 2015 with the purpose of understanding how effectively the institutions supervised their financial advisers to identify and deal with non-compliant advice and the extent of failure by the institutions to deliver ongoing advice services to financial advice customers who were paying fees to receive those services.

"Since the publication of this report, ASIC has been monitoring the ongoing implementation of the institutions' customer review and remediation programs," the regulator said.

Read more: ASICCBANABMacquarie EquitiesANZWestpac
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