Fix-it costs bedevil CBA
The staff and other costs to Commonwealth Bank of sorting out and compensating customers for poor financial advice continues to eclipse the value paid out to victims.The sixth periodical report on the Open Advice Review program Friday, prepared for the bank by Promontory Financial Group Australasia, CBA's consultant, shared new data on the staff numbers devoted to this activity.Promontory and CBA put "resources" allocated to this and related programs at 557 as at 29 August 2016. They pointed out that this was an increase of six per cent from the 527 "resources" working on the program as at April 2016.With more than 45,000 full-time equivalent employees at its financial year close in June 2016 Commonwealth Bank has diverted fully 1.2 per cent of its workforce to a program with an ultimate customer benefit of less than A$10 million.With an average FTE annual staff cost of $137,000 at CBA one stab at the cost of working out the rights and wrongs of bad advice for the bank is in the order of $75 million.