The Commonwealth Bank has been forced to pay a further $4.96 million in compensation to victims of bad financial advice as a result of being slapped with licence conditions by the corporate regulator. A report released by the Australian Securities and Investments Commission on Monday revealed the bank let down 185 customers in its initial attempts to compensate clients. It said the licence conditions resulted in an additional $4.96 million being paid out to customers who would have otherwise received nothing, due to being wrongly identified as receiving "no advice", "appropriate advice" or not being compensated adequately enough. The report, by KordaMentha Forensic, also reveals the steps taken by CBA's financial planning arms, Commonwealth Financial Planning (CFPL) and Financial Wisdom, to compensate clients of 15 former advisers for advice they received between 2003 and 2012.
Commonwealth Bank (CBA) has been forced to pay AUD 4.96m ($4.96 million) in compensation to 185 clients who suffered "devastating losses" thanks to bad financial advice, following changes in licence conditions, in the according to a report by by KordaMentha Forensic. The report revealed the new licence conditions forced the CBA to offer "thousands" of clients AUD 5,000 to have their financial advice reviewed. The CBA previously paid AUD 26.97m to 707 customers who suffered "devastating" investment losses under 15 of the bank's former advisers.