CBA starts to pay out for financial planning remediation
Following revelations that poor financial advice had been provided to the customers of the Commonwealth Bank's wealth management businesses, Commonwealth Financial Planning and Financial Wisdom, the CBA group retained an independent expert to monitor, review, and report on the program it set up to ensure no clients were worse off. The independent expert, Promontory Financial Group, yesterday released its third report on CBA's Open Advice Review program, assessing progress to 31 August 2015. The report noted that, as at 31 August 2015, more than 23,000 customers had expressed interest in the program and over 8,000 customers had confirmed they would like their advice assessed. As at the end of August, compensation of A$950,252 had been offered and, of that total amount offered, the Bank had paid $488,815 to 21 cases. The report also outlines Promontory's review of sample cases. By 31 August 2015, 686 assessments were issued to customers, increasing to over 1,000 assessments by 30 September 2015. Of all the cases that had exited from the program as at 31 August 2015, only one case had subsequently contacted the Financial Ombudsman Service after being issued an assessment outcome. Furthermore, as at 31 August 2015, no case had exited then subsequently pursued a claim against the Bank through the courts. The next report by Promontory is expected in January 2016.